Entrepreneurs planning to scale their businesses within the EU should consider the UK jurisdiction. It is a better country for starting work with international companies. Business owners can easily open an account with a foreign bank or a reliable payment system. Would you like to learn more about English business? Maira Consult experts have prepared a guide on the specifics and complexities of registering a company in England.
Types of companies to register in the United Kingdom
According to research by Maira Consult experts, two legal forms are of greatest interest to businesses: LTD and LLP. What are their specific features?
Registering an English LTD company
An LTD is a limited liability company whose name must end in “Ltd” or “Limited”. Maira Consult lawyers have compiled its key features:
The company’s director and shareholder may be an individual or a legal entity, with no residency requirements. One person may also serve as both director and shareholder.
LTD companies must maintain financial statements and submit them annually to government authorities.
Companies of this type must pay corporate tax (19%). If profits exceed 50 thousand pounds, the tax rate increases to 25%.
LTDs must register for VAT if the company’s taxable turnover exceeds 90 thousand pounds (the VAT rate is 20%). To register, information about the company’s activities and partners must be submitted to the tax authorities.
To retain the VAT number, reports must be submitted to the tax authorities, and they must not be zero.
Registering an English LLP company
An LLP is a limited liability partnership whose name must contain either the abbreviation “LLP” or the full phrase “Limited Partnership”. Learn about the key features of such companies from Maira Consult:
LLP companies must have two or more partners, who may be individuals or legal entities;
there are no restrictions on the partners’ residency or place of registration;
the company has no director, but has an authorized partner;
an LLP must submit an annual financial report;
the partners pay income tax separately;
companies of this type can open an account provided that no nominee service is used.
What is EORI for English companies?
In 2019, the United Kingdom left the EU. Therefore, for an English company to trade within the EU, it must obtain an EORI number. This international system is a unified database of companies engaged in foreign economic activity within the EU. Customs authorities use the EORI database when processing imports, exports, and transit of goods.
Tax residency status in England
After registering a company in England, it is possible to obtain a tax residence certificate (Tax Residence Certificate). This document confirms the company’s residency. The certificate is necessary to avoid double taxation.
What are the requirements for companies wishing to obtain the certificate:
have a local director;
the company must have a track record;
the company must have submitted complete financial reports and paid its corporate income taxes.
If you would like to obtain Tax Residence Certificate as quickly as possible, contact Maira Consult. We will help prepare all the necessary documents and submit them to the government authority.
Where in England can you open a company without financial reporting?
UK legislation allows companies to be registered in Scotland, where the most popular form is the Scottish Limited Partnership (SLP). What are the features of such companies:
companies of this type must have two or more partners, either individuals or legal entities, with no registration or residency requirements;
one of the partners must be a general partner, bear unlimited liability, and manage the partnership;
the second partner has limited liability and does not participate in managing the company;
an SLP does not file an annual financial report provided it has no business with UK residents.
However, Maira Consult lawyers note that it is impossible to liquidate a Scottish company through the standard procedure. The firm may be dissolved, but information about it remains in the state register for another 20 years. There are also difficulties opening accounts with payment systems and banks, as they refuse to work with SLPs.
How do you liquidate an English company?
A company in the United Kingdom is liquidated in accordance with the procedure established by law. Maira Consult experts explain what the process involves:
full repayment of debts related to financial statements;
payment of all taxes;
checking for debts owed to the English tax authorities and third parties;
the director signing a resolution approving the decision to close the company;
signing and submitting a special application form for liquidation to the state register.
The liquidation of a company is considered complete when the corresponding entry, “First Gazette notice for voluntary strike-off”, appears on the company’s page in the state register. The tax authorities also have the right to challenge the process if the company has outstanding debts.
What can Maira Consult help with?
Registering a company in England is particularly beneficial for software developers and IT firms. This allows the company to enter the international arena and find new profitable clients. Agricultural traders, exporters, and trading companies also register businesses in England. If you want to become the owner of a company in your chosen field as quickly as possible, you should seek assistance from Maira Consult. Our lawyers will quickly register a company in England and open an account with the reliable Lloyds Bank.
If you need to open an account with English payment systems, experts recommend:
Wise.
If you are interested in a more detailed legal consultation on the specifics and complexities of registering a company in England, schedule one using the phone numbers listed on the website.
