United Kingdom, island country located off the northwestern coast of mainland Europe. The United Kingdom comprises the whole of the island of Great Britain—which contains England, Wales, and Scotland—as well as the northern portion of the island of Ireland. The name Britain is sometimes used to refer to the United Kingdom as a whole. The capital is London, which is among the world’s leading commercial, financial, and cultural centres. Other major cities include Birmingham, Liverpool, and Manchester in England, Belfast and Londonderry in Northern Ireland, Edinburgh and Glasgow in Scotland, and Swansea and Cardiff in Wales.
All the traditional languages spoken in the United Kingdom ultimately derive from a common Indo-European origin, a tongue so ancient that, over the millennia, it has split into a variety of languages, each with its own peculiarities in sounds, grammar, and vocabulary. The distinct languages in what became the United Kingdom originated when languages from the European continent developed independently in the British Isles, cut off from regular communication with their parent languages.
he UK Private limited company is a well-recognized and reputable business structure incorporated in one of the major international financial and trade centers worldwide with a long proven track record of fiscal and legislative stability.
Corporate taxes in the UK are considerably reasonable (19%) compared with other European jurisdictions.
UK Limited companies are an excellent vehicle as holding companies, taking advantage of the over 100 tax treaties that the UK has concluded, tax-exemption on capital gains on the sale of shares that fulfills certain conditions, tax exemption on dividends received from both local and foreign sources and no withholding tax on dividends paid to non-residents.
Furthermore, a company may elect to be exempted on non-UK profits of a Permanent Establishment in a country where the UK has concluded a tax treaty with.
Private company limited by shares (Ltd) and Limited Liability Partnership LLP
|Governing corporate legislation|
UK Companies Act 1985, amended in 1985 and 2006 for LTD and UK Limited Liability Partnership Act, 2001 for LLP
LTD must have at least one shareholder, who can be a director. There’s no maximum number of shareholders. Shareholders may be either natural or legal persons, residents or non-residents, without limitations.
An LLP must be set up by a minimum of two members, who may be natural or legal persons, resident or non-resident, without limitations. The identity of the LLP registered members is publicly disclosed. Partnership agreements remain confidential.
At a minimum, two of the members must be designated members. The designated members have principal responsibility for statutory filing requirements and associated matters.
LTD should have at least 1 director, who must be a natural person. Corporate directors are allowed, provided that at least 1 director is a natural person. Directors may be residents or non-residents.
LLP members may act as managers, or alternatively, they may appoint a manager. Corporate managers are allowed. Details may be available to the public.
|Information published relating to company officers|
LLT: The identity and personal information of the stockholders are publicly disclosed.
Details of directors are available to the public.
LPP: The identity of the LLP registered members is publicly disclosed. Partnership agreements remain confidential.
The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
|Accounting requirement/ compliance|
Company must maintain records about the company itself, financial and accounting records and supporting documentation, which must be kept for 6 years. Records must be kept at the registered office.
All UK Companies must file an annual return with their accounts with the Companies House, available to the public, and a tax return with the HM Revenue & Customs. Companies must appoint an auditor and file their accounts audited. A company may qualify for an audit exemption if it has at least 2 of the following:
An annual turnover of no more than £10.2 million; assets worth no more than £5.1 million; 50 or fewer employees on average.
A UK LLP is a fiscally transparent entity, therefore profits and losses are taxed at the personal level.
Each member of the LLP will receive an individual self-assessment tax code, they must all file their own self-assessments all monies received from the liability partnership.
Non-UK residents who do not qualify as UK residence for taxation purposes and do not earn US-source income, do not have to file self-assessment and not subject to UK income taxes, however, they are responsible for paying taxation in the country they reside.
|Corporate income tax|
LTD :Corporate tax standard rate is 19%.
A diverted profits tax may be levied at 25% on diverted profits of company groups creating a tax benefit by using transactions or legal entities that lack economic substance or companies that have structured their UK activities to avoid setting a permanent establishment.
Companies conducting certain activities, such as oil, gas, banking or insurance activities are subject to a special tax regime.
A company is tax resident in the United Kingdom if it is incorporated in the UK or its place of central management and control is in the UK.
Companies residents in the UK are taxed on their worldwide income. Foreign profits and losses of a foreign P.E. may be excluded by making an irrevocable election.
An UK LLP: is a tax transparent entity, which means that any profits are passed through to the members to be reported as personal income.
if LLP owners are Non-UK Residents (and not subject to Personal Income Tax) and do not operate and generate profit from the UK, does not lease or own properties within the UK and does not have UK employers, offshore income accrued by a UK LLP may not be subject to taxation.
Personal income tax – An individual is tax resident in the UK if he or she spends at least 183 days in a year within the country or his or her only home is in the UK for at least 91 days in a year or work full-time in the UK or fulfills one of the previous conditions during the three preceding years.
|Shared capital/paid up|
The minimum paid up share capital for a Private Limited Company is GBP 1. There is no concept of authorized share capital in the Companies Act. Share capital may be denominated in any currency and different classes of shares may be denominated in different currencies.
There are no minimum capital requirements or guaranteed unit obligations from members of an LLP
|Basis of the Legal System||Common Law|
LTD:The company may appoint a secretary, but it is not mandatory.
Shares may be issued as registered, preference, and shares with or without voting rights. Redeemable shares and share warrants to bearer may be issued. Non-par value shares are not allowed.
A Ltd. company registered office address is where official communications will be sent, for example, letters from Companies House. The address must be a physical address in the UK and in the same country the company is registered in, for example, a company registered in Scotland must have a registered office address in Scotland.
A company limited can use a PO Box but must include a physical address and postcode. It can be a home address or the address of the person who will manage the company. Company address will be publicly available on the online register.
LLP same as above.
Annual general meetings are not mandatory. If they take place, they can be held be anywhere and by electronic means or by proxy.
LLP:There is no statutory requirement for any formal meetings of members.
Permitted ON both
|Time to form||3-5 DAYS|
Anniversary date of the company / Each Year
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