In the world of business, where each and every decision can have far-reaching consequences, thorough legal preparation and analysis play a key role. At Manimama, our lawyers are constantly engaged in researching various aspects to ensure the success of the business. We always do our best to analyze and select the most appropriate jurisdiction for the client's business.
From our recent survey, we have determined that a massive number of different types of companies have been incorporated in the UK in recent years, for example, 801,000 companies were incorporated in 2022. With this in mind, we suggest that you familiarize yourself with the particularities of a jurisdiction such as the UK and why you should pay attention to it if you are planning to register a company.
Advantages of the UK incorporation
At the outset, we would like to focus on the fact that UK company incorporation offers significant advantages, rendering this jurisdiction as one of the most appealing for international business. Our lawyers have identified such advantages:
- Based on developed English law, the UK’s legal system ensures a predictable and reliable legal environment, which is especially valued by international investors.
- The country is known for its business-friendly environment, which makes it easier to do business and encourages companies to grow and develop.
- Its low cost of incorporation makes the UK accessible to businesses of all sizes, from start-ups to large corporations.
- The process of registering a company in the UK is relatively straightforward and does not require the presence of a notary, simplifying and speeding up the process.
- The ability to conduct remote verification simplifies the registration process for foreign entrepreneurs.
- The existence of an extensive network of double tax treaties and exchange of information agreements, which reduce the tax burden and ensure the transparency of financial transactions.
- Established relationships with offshore jurisdictions offer additional tax and financial opportunities for UK-registered companies.
- The UK encourages innovation and technological development by providing a welcoming environment for research and development in a wide range of sectors.
- Incorporating in the UK can enhance a company’s reputation and credibility with customers, partners and investors by demonstrating a high level of business ethics and standards.
Overall, these benefits place the UK as a preferred location for company incorporation, providing a unique blend of opportunities for growth, innovation and global interaction that ensures businesses can operate sustainably and successfully on the international stage.
Who might benefit in the UK
We also recommend that you look at exactly who might benefit from registering their company in the UK. Thus, the UK jurisdiction can be considered the most profitable and justifiable choice for:
- e-commerce – the UK offers one of the largest online trading markets in Europe, making it ideal for retailers looking to expand their e-commerce activities;
- сonsulting business – due to its developed economy and the presence of large multinational companies, the country has a vast market for consultancy services in a variety of sectors including IT, finance, management and law;
- software development – the country has a robust technology infrastructure and a high demand for IT solutions, creating an ideal environment for software development and distribution;
- web portal development – with high internet penetration and active online consumption, the UK is an excellent place to launch and develop web portals offering a variety of online services;
- marketing and advertising industries – the strong advertising and marketing sector in the UK presents many opportunities for advertising and marketing agencies providing a variety of services;
- educational services – the UK brings great possibilities for the development of educational start-ups, online platforms and learning centers;
- financial services – the country is particularly suitable for companies involved in banking, insurance, investment management and fintech.
Thus, these sectors find in the UK good conditions for their growth and expansion, including government support, access to finance, a qualified workforce and a highly developed infrastructure.
Excellent state for cryptocurrency business
We would also like to point out that the UK is also a promising environment for cryptocurrency business development due to its modern approach to financial technology and regulation. The country promotes the growth and expansion of cryptocurrency startups and blockchain projects, offering a supportive environment for research and development in this field. There are major opportunities in the UK market for cryptocurrency companies, including cryptocurrency exchanges, custody wallet providers, crypto ATMs etc. If you are interested in obtaining a license for activities with crypto assets in the UK, you can familiarize yourself with the specifics of its acquisition in our recent article.
Taxation in the UK
When it comes to taxation in the UK, it is primarily as follows:
- the main rate of the corporate tax is 25% for companies with taxable profits above £250,000;
- the basic rate of personal income tax is 20% on income between £12,571 and £50,270;
- the standard rate of VAT is 20% on most goods and services;
- capital gains tax for corporations – they pay corporation income tax on gains from asset sales.
Benefits while incorporating with Manimama
Our law firm can help you successfully start your business in the UK. Manimama’s team of experienced lawyers will provide you with full support throughout the entire company registration process. We will ensure that your company not only completes the registration process, but is also in full compliance with all legal requirements and regulations. For your understanding, we have outlined the scope of our services:
- Choosing a company name: we can assist you in selecting an appropriate company name that complies with the regulations of the country.
- Company formation (LTD): depending on the purpose of your business, we will determine which company should be registered (limited by shares” or “limited by guarantee”) and apply for registration with Companies House.
- Apostilled pack of corporate documents: for non-UK residents setting up a limited company in the UK, it is often necessary to legalize some of the company’s incorporation documents to confirm their authenticity for use overseas. So, there is an opportunity to legalize different company documents including the Certificate of Incorporation, Memorandum and Articles of Association, Share Certificates and so on.
- Tax number obtaining – we will register your company with HMRC for corporation tax purposes.
- Confirmation statement submission: we will prepare and submit a Confirmation Statement on your behalf to Companies House annually. Such a statement verifies that all company information is accurate and up to date.
- Registered address for 1 year: it is a legal requirement, in particular for all limited companies to which government agencies will send mail. The registered office has to be a physical address (not a PO Box number) that is in the UK jurisdiction in which the company is registered, namely England and Wales, Scotland or Northern Ireland.
- Service address for 1 year: we offer you to get such an address for company officers to receive government mail.
- Business address for 1 year – we can propose you get such address for receiving and forwarding business correspondence of a general type (this is an optional requirement for the company).
- Business phone number: you will receive your own unique 020 number in London or a regional telephone number. This number can be used as your new business number on your letterheads, website, advertising, etc. and we’ll forward all calls to your mobile or landline so you can answer them.
- VAT registration: we will handle the preparation of VAT registration documents and submit them to HMRC on your behalf.
- PAYE registration: we will register your company for PAYE if any employees or directors will receive a salary from your company.
- GDPR compliance documents: we will create a package of legal template documents for you that helps you comply with the laws of the UK and the EU, including GDPR.
- Accountant services for 1 year: it covers all basic accounting work including quarterly VAT filing, payroll calculations, submitting confirmation statements, year-end bookkeeping, and corporate tax preparation and filing, etc.
- Corporate payment account: we will help you to open a multi-currency payment account.
We ensure that your UK company registration enquiry is handled with the utmost professionalism and attention to detail.
Hence, if you are looking for legal support that combines in-depth knowledge, a personalized approach and an unwavering commitment to your success, get in touch with Manimama at support@manimama.eu so that we can help you start your business in the UK!
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
