FREQUENTLY ASKED QUESTIONS FOR OVERSEAS CUSTOMERS
We have compiled a list of the most common questions asked by our overseas customers.
Q. Can I set up a UK limited company if I live outside the U.K?
A. Anybody can form a UK limited company providing the director(s) are aged 16 or over and that the director is not an undischarged bankrupt. It is not necessary for the directors or shareholders to be resident in the UK, however you will need to provide a UK address for the registered office of the company. Many people resident or domiciled in overseas jurisdictions discover that there are several advantages to incorporating in the UK, these include:-
- The fees for incorporating a company in the UK are well below many parts of Europe
- The company can be incorporated with only one shareholder
- There are no minimum capital requirements
- We can complete the incorporation process electronically within 4 hours without the involvement of either the court or notaries
Q. How can I provide a UK address for the registered office if I live overseas?
A. We can provide a registered office for your company where a separate address for the service of routine paperwork and official correspondence from authorities such as Companies House and the Inland Revenue is required. We can provide a registered address at our head office in Cheshire at an annual fee of £85.00 plus VAT, or at a London W1 address at an annual fee of £110.00 plus VAT.
Q. How many people are required to form a UK limited company?
A. A UK limited company must have at least one director. There is no limit to the number of directors allowed.
Q. Do I need a company secretary?
A. From 6 April 2008 a private company does not have to have a company secretary (unless its Articles of Association explicitly requires the company to have a secretary).
Q. How many shareholders can a limited company have?
A. A company can have any number of shareholders holding any number of shares. There must be at least one shareholder, as a company cannot exist without a share capital. Sole shareholders are allowed in private companies.
Q. What is the minimum number of shares that must be issued?
A. In simple terms, the shareholding of a company determines its ownership, and this is usually structured very easily. If your company is to be wholly owned by yourself, you need only have a single share issued in your name to begin with. Alternatively, should you wish to spread shares amongst various family members or investors, an allotment of 100 shares may give the flexibility required.
Larger numbers of shares can be issued to shareholders who introduce capital into the company, reflecting their financial investment. High levels of capital are sometimes, although rarely, introduced at the outset in order to demonstrate high levels of capital commitment to encourage confidence in the company on the part of potential lenders or suppliers. However, please note that in the event of failure of a business, a shareholder may be responsible for any amount outstanding on shares registered in his name that are not fully paid at the date of receivership. Therefore it is not advisable to allot large numbers of unpaid shares at the outset.
Q. What other services do I need if I live overseas?
A. If conducting business overseas or entering into contracts with non-UK customers, it is possible that lawyers or local regulations may require that a company affixes an official seal to legal documents, contracts or lease agreements. In addition, when trading overseas, an Apostille of Company Documents maybe required. This process is called Legalisation and is the official confirmation that a signature, seal or stamp on a UK public document is genuine.
Foreign authorities usually require legalisation before they will allow a UK document to be used for official purposes in their country. The most common reason for requiring an Apostille is that a non-UK bank or registration authority demands proof of the validity of company documents. An Apostille is a stamp or adhesive label, signed by the Foreign & Commonwealth Office (a UK government department), and applied to a signed legal or government document or commercial contract.
Our fee for the Apostilling of the Certificate of Incorporation, Articles of Association, and a list of current directors is £117.50 inc vat. We have to follow a strict process of having documents first certified as authentic by a lawyer, then submitting to the Foreign Office for the Apostille certificate to be issued.
The process consequently takes up to ten or fifteen working days to complete.
Q. What responsibilities does a director have after the limited company is formed?
A. Every company director has a personal responsibility to deliver statutory documents to Companies House as and when required by the Companies Acts. These include, in particular:
- Accounts
- Annual Return
- Notice of change of Directors or Secretary or in their personal details
Q. What happens if I do not submit my Accounts or Annual Return to Companies House?
A. As a Director of a company, Companies House can prosecute for not submitting these documents on time. This is a criminal offence and upon conviction the court can fine a Director up to £5,000 for each offence. There is a separate, civil penalty imposed on the company for the late filing of Accounts.
If Companies House believes that the company is no longer carrying on business or in operation, after writing to the company to check whether that is true, Companies House will strike it off the register and dissolve it. If this happens all the assets of the company, including its bank account and property, generally become the property of the Crown. Once a company is dissolved you can only restore it to the register by means of a court order.
Q. Do I need to be VAT registered?
A. Anyone in business whose taxable supplies exceed a certain limit (currently £70,000) must register for VAT. This includes sole traders, partnerships and limited companies. Taxable supplies are all goods and services which are sold or supplied and liable to VAT, whether or not you are registered for VAT. If your turnover for the previous 12 months is over the current threshold, or may go over the threshold in the next 30 days, you must register for VAT. Therefore, turnover should be reviewed on a regular basis.
You can also register voluntarily for VAT even if your value of taxable supplies is below the threshold. Once registered for VAT you will have to charge VAT on your products and services. If your customers are mainly non-VAT registered (i.e. individuals) then registering for VAT will mean that your customers will be paying more. However you will be able to reclaim your input tax on purchases. You will need to consider very carefully whether there are any advantages to your business in registering for VAT.
Q. Do I need a company bank account?
A. You will need a company bank account if you intend on trading through the limited company. We can introduce you to HSBC bank. Once your company has been incorporated we will send all the relevant details and documents to HSBC along with your contact information. HSBC will then contact you within 48 hours to finalise the setting up of your account. You do not need to visit the UK in order to complete this process as business account applications can be completed over the telephone or by post.
HSBC Business banking offers up to 18 months free banking and free commercial credit card plus internet and telephone banking together with full support from HSBC business specialists. When you incorporate your company online, you will be given the option of adding a Free Bank Account Introduction to your order.
Q. Can I speak to one of your staff if I have a question that isnt answered here?
A. Certainly. You can pick up the phone and talk to real professional people should you have any questions or problems before during and after you have ordered. We are proud of our commitment to customer service, and every client receives the same high quality of support from our friendly and helpful staff.
Telephone: 44 161 440 8884 or email: info@companyregistrations.com
Q. How do I place an order?
A. To visit our secure online ordering facility please
Click here.
Please register as a new user by entering your contact details. You can then proceed and enter the details of your limited company order.
Q. What information will I need to complete my company formation?
A. You will need the following details for each person who is to be appointed as a Director or Shareholder of the company in order to place your UK limited company formation order request:
- Full name (including middle names)
- Residential address
- Date of Birth
- Nationality
- Occupation
- First 3 letters of town of birth
- Last 3 digits of telephone number
- First 3 letters of eye colour