UK company formation

Introduction

UK corporation tax is charged on the worldwide profits (income plus gains) of any company that is resident in the UK. A company is UK resident if it is incorporated in the UK or if its centre of management and control is in the UK. If a company has a majority of UK resident directors it is likely to be UK resident, although the test is where management is actually exercised.

Generally speaking, a U.K. company is taxable on its worldwide income. However, in certain cases, a U.K. incorporated company may be classified as non-resident for tax purposes, and therefore non taxable in the U.K. on non-U.K. source income. Such a company must be managed and controlled from a country with which the U.K. has signed a double taxation treaty. By careful selection of the country from which the U.K. company is managed it may therefore be possible to create a non-taxable U.K. entity. For exemple, Portugal has a suitable tax treaty with the U.K. so a U.K. company managed from Madeira, a part of Portugal, would neither be taxable in Madeira nor the U.K.

Top 10 reasons to incorporate

1. Limited company subscribers may be residents outside the UK.

2. You must appoint a minimum of 1 Director.

3. Directors can be corporate bodies or private individuals.

4. A Director can be of any nationality.

5. All English and Scottish companies must appoint a company Secretary.

6. A Secretary can be of any nationality.

7. If there is only ONE Director he or she CANNOT also be the Secretary.

8. There is no maximum and no minimum share capital.

9. There is no minimum share capital, no paid-in capital requirement.

10. The company is required to have a registered office in the United Kingdom.

RICHFUL provides UK company services

Iincluding name registration, UK ready made companies, companies limited by guarantee, flat management companies, subsidiary companies and PLC incorporation. We have assisted thousands of companies around the world establish and maintain their new or existing business formations. Our corporate, tax and securities lawyers have extensive experience in the issues involved in all type of business entities, including corporations, private limited companies, public companies, limited liability companies, limited partnerships, general partnerships, limited liability partnerships and professional associations. Our lawyers advise clients in the choice of entity to utilize for any given business venture. Such advice includes the tax advantages of the respective entities as well as the non-tax or business issues involved in each type of entity. Our lawyers continue their representation of such entities on an ongoing basis and advise the entity and its owners regarding the business issues which arise from time to time (such as labor and employment issues, tax issues, negotiating contracts, securities issues and licensing and regulatory matters).