Great Britain is currently in the 7th place according to the rating of the World Bank in terms of simplified procedures for establishing a company and conducting business in its territory. In particular, it takes an average of 12 calendar days to open a business in Great Britain (11 days in countries that are members of the Organization for Economic Cooperation and Development). It is among the ten largest producers of goods and is the world’s second largest exporter in the field of services.
A simplified system of business registration in Great Britain, which includes a number of key aspects (in particular, the introduction of the principle of a single window, the possibility of registration both on the basis of documents provided in paper and electronic forms, and on the basis of a “model charter”, the presence of a wide variety of organizational legal forms of legal entities, etc.), creates favorable conditions for conducting business activities both on the territory of the United Kingdom and abroad.
Advantages of doing business in United Kingdom
Let’s start with the key advantages of the idea of registering a company in one of the leading countries and financial centers of the world. Among the advantages of doing businesses in United Kingdom, business consultants and businessmen themselves single out:
economic and social stability in the country;
- a well-developed market;
- legislation promotes business;
- progressivity in taxation (in the current period, the level of taxes has all the prerequisites for a decrease);
- relatively low interest rates;
- high level of asset security;
- established trade relations with European markets and the USA (England is a few steps away from signing an agreement on free economic space and interaction with the USA).
In addition to the above, it is worth noting the prospect of obtaining a residence permit, especially taking into account the recently launched investment and emigration programs.
Tax year
Tax rates and the amount of the minimum wage will be reviewed by the state as of April 6 each year. But if your business is registered, for example, in July 2022, then the financial year for you will start from July and in one income tax declaration, tax rates for different tax periods may be applied from July to April 05, one rate, and from 06 April to July is different. What’s more, you can even file two annual returns for the first year of your business.
Financial (accounting) year
For example, you are registered on 07/11/2022, then the first full year of activity will be on 07/10/2023. During this period, you should submit one declaration, and for the tail from 07/11/2023 to 07/31/2023 – another. Since, your financial year will be determined from 01.08 to 31.07 of the following year.
Business registration
Also quite interesting is the fact that when registering an FOP (in Great Britain – a self-employed person), you can choose any name. At the same time, the selected name should be checked in the register and registered as a trademark. Trademark registration lasts 4 months. Activities can be carried out during this time.
Limited companies
In the UK they are not quite the same as in most countries. They can be independent legal entities or an association of partners.
If it is an independent legal entity
In the UK those who create it are called participants with equal rights. Participants are not responsible for the activities of the Society, but the Society is for them. All cones fall on the director. He is responsible for everything in the world: failure to submit reports, non-payment of taxes, losses of the enterprise. The company pays corporate income tax (actually it is income tax) in the amount of 19%. But the expenses can include, for example, non-current assets at the cost of acquisition in the year of acquisition, and not amortized monthly. And it has a lot of benefits, knowing about which you can reduce your pre-tax profit.
Form of a partnership,
then the participants are not equal. Here there will be a General Partner who makes all decisions alone and has full responsibility for the results of the Company’s activities, and a Limited Partner who does not make decisions and is not responsible for anything. At the same time, partners can join a partnership as self-employed persons for a certain activity without registering the Company. Taxes in such a Company are paid by partners independently, as from personal income.
Registration procedure
The first step in registering a business in England is opening an account. In such a progressive country, this stage can be completed online. To do this, you should fill out an application on the website of the embassy, which states:
- unique company name;
- legal address;
- data of the founders of the company;
- confirmation of financial capabilities;
- copies of documents;
- description of the United Kingdom Businesses For Sale idea.
Let’s now consider the points in more detail. First of all, keep in mind that you can either open a company from scratch or buy a business in United Kingdom. The name of the new organization must be unique. The verification of uniqueness is performed directly by the registration authorities.
The list of documents required when submitting an application includes: application, founding agreement, company charter and founders’ passports. Business registration in England is carried out in the Registration Chamber.
The result of application approval is a certificate. It is sent electronically immediately after the decision of the relevant authorities. The paper one is received in a week.
According to the current British legislation, there are no fundamental differences regarding the state registration of various organizational and legal forms of legal entities. In particular, in order to establish a UK limited company, it is necessary for at least two partners to come together for certain business purposes and sign a series of founding documents. As with regular companies, there are two methods of company registration:
- electronic method: The fastest method. You can register your partnerships through “online” registrars using specialized software. The application process and registration fees are individual for each agency and software.
- paper method: Standard paper requests take up to five business days to process on average. There is also a faster method – registration upon receipt. Requests received by 3 p.m. during the business week and marked “Same-day Incorporation” on the envelope are processed the same day. Registration fees are 15 pounds. and 30 f.st. in accordance. To register an LLC, you need to fill out the “LL IN01” form in English (or with a certified translation). It must be signed by the persons establishing the Company, as well as by the person who ensures the registration of the Company itself, or by a British lawyer. Registration documents and a banker’s check payable to Companies House should be sent to the relevant Companies House address. This can be done independently or through a specialized agent.
If you are considering business in United Kingdom for sale, then you need to understand the business forms and taxes.
