Setting up your company in the UK
Starting a business in the UK
Registering a company in the UK is inexpensive and fast. The only documents you will need are a copy of your ID and proof of residence dated within the last three months. You can register with Companies House, or if you are short on time, we can do it for you; contact us.
The benefits of starting a business in the UK
The British government understands that simplifying formalities will inevitably attract more investors. Here are some of these benefits:
– VAT exemption if your turnover does not exceed a certain threshold (no need to apply for a VAT number when incorporating the company).
– All business incorporation procedures are done online : you do not need a notary or a lawyer to set up your company; your accountant can do it for you.
– You will have up to 21 months after your company is incorporated to pay corporation tax.
– You have 12 months after the end of your financial year to send your tax return to HMRC and 9 months to file it with Companies House.
Steps to set up a business in the UK
– Choose the right legal structure for your business needs (A Limited Company is the most common choice).
– Register your company name: It must not be the same as an existing company name, although you can use the name of a company that has already been dissolved.
– Gather the information and documents required to register your company:
• Company name
• A physical address in the UK, which will be on the public record
• Details of the share capital and distribution within the company. You must hold at least one share
• Personal details of the company director (who must be at least 16 years old) and, if applicable, the company secretary (optional)
• Personal details of the company shareholder(s).
– Prepare the articles of incorporation (Memorandum and Articles of Association)
The Memorandum is a set of standard documents in which shareholders confirm their intention to form the company, and the Articles of Association constitute the set of rules and regulations defining how the company will be governed.
– Register with the Registrar of Companies
This information will be sent to the Registrar, who will proceed with the incorporation of your company.
– Company registration number
If it is a limited company, you cannot begin trading until you receive confirmation from the Registrar, at which point you will be issued a registration number as proof of your company's incorporation.
– Maintain company registers
UK legislation requires companies to establish and maintain the following registers:
• Register of directors
• Register of directors' residential addresses
• Register of secretaries (if applicable) • Register of members
• Register of allotments
Doing business in the UK: FAQs
- Can I set up a company if I don't live in the UK?
Yes, you don't even need to travel to the UK to set up your company. We can handle the incorporation for you.
- What if I don't have an office in the UK?
Don't worry, you can use a registered office service provider to host your company's address.
- Which structure should you choose?
It all depends on your size, your project, and the number of people who will be working with you. You can choose between :
• Sole trader: This is the simplest and least expensive way to start a business in the UK. You only need to register with HMRC and prepare your tax return at the end of the tax year, which is April 5th.
• Limited Liability Partnership (LLP): Two or more people join forces to work together. Each party receives a percentage of the profits, and each person pays tax in proportion to the percentage of profits they have received. There is no corporation tax to pay; individuals are taxed on their income in the country where they are tax residents. Each partner is responsible for the partnership's debts.
• Limited company (Ltd): A limited company is the most common business structure in the UK. You only need one director and one shareholder to set up an Ltd. The minimum share capital is £1. The main advantage is that the shareholders' liability is limited to their investment. When the company makes a profit, it can be distributed to shareholders as dividends.
• Public Limited Company (PLC): This is reserved for large companies, generally those listed on the stock exchange. The minimum capital is £50,000, and an audit is required at the end of the year.
- How long does it take to open a company?
The process is relatively quick. Your company can be set up in just one or two days.
- What about a bank account?
Unlike in France, the bank account is opened after the company has been incorporated. It is difficult for non-tax residents to open accounts with major, well-known banks such as HSBC, NatWest, Lloyds, or Barclays. More and more entrepreneurs are turning to online banks, such as Revolut.
