What are the features and difficulties of registering a company in England

Entrepreneurs planning to scale their business within the EU should consider the UK jurisdiction. It is the best country to start working with international companies. Businessmen can easily open an account in a foreign bank or a reliable payment system. Do you want to know more about English business? Maira Consult experts have prepared a guide on the features and complexities of registering a company in England.

Types of companies to register in the UK

According to Maira Consult experts, two legal forms of ownership are of the greatest interest to businesses: LTD and LLP. What features do they have?

Registration of an English company LTD

Ltd is a limited liability company, the name of which must necessarily end in "Ltd" or "Limited". Maira Consult lawyers have collected its main features:

An individual or legal entity without residency requirements can be a director and shareholder of the company. It is also possible for one person to simultaneously perform the duties of a director and a shareholder. If the profit increases by more than 50 thousand pounds, the tax rate increases to 25%.
Ltd must register a VAT number if the company's taxable turnover exceeds 90 thousand pounds (VAT rate is 20%). To register, you need to submit information about the activities of the company and its partners to the tax authorities.
To keep the VAT number, you need to submit reports to the tax authorities, and they should not be zero.

Registration of an English LLP

LLP is a limited liability partnership, the name of which must contain the abbreviation "LLP" or the full phrase "Limited Partnership". Find out about the main features of such companies from Maira Consult:

LLC companies must have two or more partners who may have physical or legal status;
residence and place of registration of partners are not limited;
the company does not have a director, it has an authorized partner;
LLP must submit a financial report annually;
income tax is paid by partners separately;
it is possible to open an account for this type of company if it does not use a nominee service.

What is EORI in English companies?

In 2019, the UK left the EU. Therefore, in order for a British company to trade in the EU, it is necessary to obtain an EORI number. This international system is a unified database of companies engaged in foreign economic activity in the EU. It is the EORI database that is used by the customs authorities when processing imports, exports and transit of goods.

The status of tax resident in England

After registering a company in England, you can obtain a tax residence certificate (Tax Residence Certificate). This is a document that confirms the company's residence. The certificate is required to avoid double taxation.

What are the requirements for companies wishing to obtain the certificate:

have a local director;
the company must have a history;
the company must have submitted full financial statements and paid income taxes.

If you want to get Tax Residence Certificate as soon as possible, then contact Maira Consult. We will help you prepare all the necessary documents and submit them to the government agency.

Where in England can I open a company without financial statements?

The UK legislation allows the registration of companies in Scotland, where the most popular form is the Scottish Limited Partnership (SLP). What are the peculiarities of such companies:

Companies of this type must have two or more partners (individuals/legal entities) without registration and residency requirements;
one of the partners must be the general partner and bear unlimited liability and manage the partnership;
the second partner has limited liability and does not participate in the management of the company;
SLP does not submit an annual financial report provided that there is no business with UK residents.

However, Maira Consult lawyers note that it is impossible to liquidate a Scottish company under the usual procedure. The company can be dissolved, but information about it will remain in the state register for another 20 years. There are also difficulties with opening an account in payment systems and banks (they do not agree to work with SLP).

How to liquidate an English company?

Maira Consult experts will tell you how the process looks like:Full closure of debts on financial statements;
Payment of all taxes;
verification of debts to the English tax authorities and third parties;
signing by the director of the resolution on the decision to close the company;
signing and submitting to the state register a special form of application for liquidation.

The company's liquidation is considered complete when the corresponding entry "First Gazette notice for voluntary strike-off" appears on the company's page in the state register. By the way, the tax authorities have the right to protest this process if the company has debts.

How can Maira Consult help? This will allow the company to enter the international arena and find new profitable customers. Additionally, agro-traders, exporters and trading companies register companies in England. If you want to become the owner of a company in the chosen field as soon as possible, then you should contact Maira Consult for help. Our lawyers will quickly register a company in England and open an account with a reliable Lloyds Bank. If you need to open an account in English payment systems, experts recommend:

If you are interested in more detailed legal advice on the peculiarities and complexities of registering a company in England, then sign up for it by calling the phones listed on the website.