The United Kingdom ("UK") comprises England, Scotland, Northern Ireland and Wales and is one of the member states of the European Union. It has an area of some 244,100 square kilometers (94,250 sq. miles) with an estimated population in excess of 57 million. London is one of the world's leading centres for banking, insurance and other financial services; lying between New York and Tokyo it is the third leg of the world's capital markets. Not the least of its attractions is that it is a politically stable English speaking country.
The UK is strategically located off the Northwest coast of continental Europe and has excellent communications; it has three major international airports in Heathrow, Gatwick and Manchester with extensive worldwide connections. The UK has been physically joined to mainland Europe by the opening of the channel rail tunnel link which boasts frequent train services for passengers and cars to Paris and Brussels.
The UK has signed double taxation treaties with 100 countries and thus enjoys the most extensive double taxation treaty network in the world.
Despite the fact that the UK is by no means a low tax country, UK companies can be used effectively and advantageously in a tax planning structure. One of the major benefits of utilising UK companies flows from the very fact that the UK is not a tax haven so UK based tax planning structures would not generally attract the same level of attention of those based on a pure tax haven company.
A UK Private Limited Cos. has the following characteristics:
Shareholders: A minimum of one shareholder is required and shares may be in bearer or registered form. Capital may be in any currency and there is no minimum capital requirement. Details of the shareholders appear on the public file and register of shareholders must be kept at the registered office address of the company in UK.
Directors: A minimum of one natural director is required and additional directors can be individuals or corporate entities. Details of the directors do appear on the public record. Annual meetings of directors is not mandatory but meeting may be held anywhere in the world.
Officers/Secretary: There is no requirement to appoint a company secretary but the duties of the company secretary remains. Director of the company can serve as the officers.
Restriction on Name & Activity: Names must end with Limited. It may be in any language but stated in Latin alphabets. Words like British, UK, National, International, European etc. require special approval.
Special approvals & licenses are required to undertake business of banking, insurance, assurance, reinsurance, fund management, investment funds, mutual fund etc.
Local Requirement: As a matter of local company law the company must maintain a registered office in England, Wales or Scotland. We would generally provide these services as part of the domiciliary service fee.
Timescale: Incorporation can be achieved within 2 to 4 days. Apostile may take additional days.
Annual Reporting: An annual return and annual financial statements have to be filed with companies house. Also UK Cos. are required to file annual tax returns.
Taxation: Tax is applicable on worldwide income of UK cos. irrespective of where those profits may arise. Profits do not include dividends or other distributions received from UK companies. VAT also will be applicable on goods sold in & services provided in UK.
Confidentiality: Information on shareholders / directors / officers are on public record.
Company Renewal: Renewal of company, to be paid on anniversary date of incorporation. Failure to do so results in penalties and could result in the striking-off of the company from the registry.
Latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted at every renewal as a part of enhanced due diligence. If shareholder is a corporate entity, then latest certificate of incumbency and above stated docs of directors would be required.
KYC Documents for individual Director/Shareholder
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.