UK Company formation

Why UK company (LTD) and who could benefit from owning it?

First of all, UK Limited companies are easy to start and operate, especially if your profit levels are still classified as small profits (under 300 000 GBP). The Companies Act 2006, made it easier to run a limited company. The government continues to examine ways to give well run companies the freedom to focus on business rather than administrative formalities.

Limited liability of owners

The UK Limited company has its own legal identity. The shareholders of a company have a limited or capped liability for the debts of the business. A limited company allows you to take a calculated business risk without the prospect of losing everything. 

Jurisdiction prestige

UK companies are not considered offshore, therefore do not fall under classification of black, grey offshores and these are the good news for a startup. Still the tax regime is most clear and attractive. As it was said above, you can focus on your startup and business while your profits are relatively low.

Dormant companies can be set up

A company does not have to trade to exist, comparing with the opposite situation in other jurisdictions, where you are required to do tax payments, pay minimal salary to a director, even though your company doesn’t generate any revenue.  It can be dormant which means it has made no ‘significant accounting transactions’ during its financial year.  This can be useful for the startups that not yet have the time or capital for development.  You’ll need to register the name and maintain the necessary formalities to keep the company on the register, although these requirements for dormant companies are somewhat easier to meet than those for other companies. All you have to do is maintain the filling of Confirmation Statement and Accounts once a year, what takes no more than 10 minutes if your company is in fact dormant.

Who can benefit from owning UK company?

Are you a sole freelance contractor providing services to the companies in the UK, EU or internationally? Cryptocurrency trader? App Store / Google Play developer? Small or medium web-development company? Consulting agency? Marketer or marketing agency? Non resident entrepreneur that need a legal presence in Europe? Basically any other small business that does not require special licenses and compliance.

Opening Business Bank Accounts

Opening a business bank account for UK company having non resident directors can be very challenging as all the main high street banks will require the directors or business owners that reside within the UK. Still we do have options no matter where in the world you live. All you need is just a basic documents package for the company and applicant, the person who will manage online account to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) international requirements.