The UK market is one of the largest consumer markets in the world. In addition, even though this country will leave the European Union soon, they have many agreements and deals with the EU that will remain. This means that those doing business in the UK can count on the large EU market too. We should also mention that the labor force in the UK is qualified and educated. These are just some of the reasons why more and more people want to launch a business in the United Kingdom.
If you are planning on doing something like this, you should know a few things. For starters, it is possible to incorporate a company in the United Kingdom with one shareholder or one director. There are no minimum capital requirements. You don’t need to use a notary, magistrate or lawyer in this process, but it would be wise to seek professional help in this process. On top of that, the process is relatively fast and won’t cost you much.
What does it take to incorporate and form a company in the UK?
First and foremost, you have to select a unique company name. Use the Internet to check the availability of the desired company name. Furthermore, every UK company must provide an address of their registered office space in the United Kingdom.
Next, every official document related to company incorporation should be submitted to the Companies House, a UK government agency. Next, the company must get a common seal in case it is an oversees incorporation. You will also need a certificate of good standing issued by the Companies House.
Company formation in the UK is probably the simplest and cheapest procedure in the developed countries. As part of the European Economic Area, the UK is an attractive business destination for many business owners and investors. In other words, they can use their UK company to conduct activities in the EEA. Another thing that we would like to point out is that the Companies House will approve the company application in less than 4 hours in case everything is alright. As you can see, the intention of the British authorities is to make this process as smooth as possible and safe at the same time. They are welcoming foreign investors in their country which is quite logical.
While we are talking about company formation and incorporation in the UK, we would also like to mention the taxation details. The tax year dates in the UK start on 6th April of the current year and end on 5th April of the next year. That’s why the tax years are often market as 2018/19 for the current year.
The majority of companies in the United Kingdom are levied 20% tax on all the net profits. These companies must submit a special company Tax Return request with HMRC. There is also a UK corporate tax and UK Dividend Tax, but these taxes depend on the size of the company, the profit, and a few other things.