Company Formation UK
Why form a company in the UK?
The United Kingdom is perhaps the easiest and least expensive jurisdiction in the world in which to establish a limited company. Certainly within Europe and more specifically within the EEA (European Economic Area), the ease of doing business across international boundaries leads many new businesses to establish a company in the UK, which can then carry out its activities anywhere in the world.
The principle reason for this is that unlike most countries, the UK has a very simple process of incorporation that does not require the input of a lawyer, notary or magistrate as is often the case. Such processes usually increase costs of incorporation. Additionally, a UK limited company has a minimum capital requirement of only £1, whereas many jurisdictions require many thousands of Euros or equivalent to capitalize a company upon its incorporation.
There are no restrictions on where the place of business is established for a UK company, nor where directors or shareholders are resident. UK companies can be managed from anywhere in the world, and conduct their business anywhere in the world.
We strongly recommend using our All Inclusive service if you are based outside the UK and trying to form a company in the UK, in order to maximize the benefit of using CRO and the comprehensive service we provide for you.
Corporation Tax in the UK
Subject to local taxation laws and existing agreements with the UK tax authorities, it is often possible to form a company in the UK as tax exempt, thus simplifying the taxation requirements where the company is managed.
Dependent upon local tax legislation, where UK companies do not carry out any trading activities in the UK, it is commonplace for those companies to be treated as non-resident for corporation tax in the UK, and to register with the tax authorities in the country where they are managed.
For example: a businessman in the EU who carries on all his work in his own country can incorporate a company in the UK, then register his UK company as a branch with a place of business in that country. He may then apply to the UK tax authority to have his UK company registered as exempt from tax in the UK.
There will still be a requirement to maintain records of the UK company at Companies House including details of directors and shareholders and we can complete all necessary company secretarial duties on your behalf to ensure that your company remains fully compliant with UK law. We can also liaise with the relevant authorities to ensure your company is set up correctly and if appropriate deal with the non-resident tax status for you.
We register thousands of companies for overseas customers every year. If you think this may be an option for you, speak to your professional advisers for further information or contact us directly. Alternatively, we also offer many other company registrations such as company formation services and company searches.
FAQs for Overseas Customers
We have compiled a list of the most common questions asked by our overseas customers.
Click here to see our Support & Information guides for further details