Despite Brexit, there are numerous reasons why the UK is a perfect location for starting a company there. Recently, the UK has emerged as an ideal destination for establishment of online business giving numerous opportunities for both resident and non-resident business owners.
There are certain legal aspects to consider before starting a company. For this reason you should consult agents that offer company formation services in the UK or you should find information about company incorporation by yourself, as it is easy to find a lot of articles that explain all peculiarities of registration in the UK.
As the UK left the EU, you should understand and analyze the effect of Brexit for your business. The good thing is that Brexit will not negatively impact all businesses and some of them will not be subjected.
In this article we share practical aspects of company formation in the UK. This information is useful for those who want to register the company on their own and those who want to use representatives for company set up.
What are the ways of company incorporation in the UK?
It is quite simple to register a company in the UK. A private limited company and partnership are the most popular types of companies. You can:
- hire an agent that specializes in company formation in the UK, or
- register the company by yourself through the UK Companies House.
In both cases, you can submit your documents online and you do not need to travel to the UK for company formation or for obtaining certificates and even opening a bank account.
What information should I prepare for registration?
Before your submit documents, you should prepare:
- a company name;
- address in the UK (alternatively, you can use agents’ services for registered office address for incorporation purpose);
- at least one director of any nationality and residency;
- at least one shareholder of any nationality and residency;
- details about each shareholder’s share;
- articles and memorandum of association (alternatively, you can use model Articles).
We warn our clients about the necessity of checking your desired company name with existing businesses. It is essential to conduct the search to avoid similarities with existing companies and trademarks.
You can find detailed information on company name requirements in the UK here:
Do not forget to use our website for searching already registered company names in the UK online.
Do I need to obtain VAT registration?
You should carefully consider whether you need to register your company for VAT. There is no threshold if neither the business owner nor the business is based in the UK. However, you obtain a VAT certificate if you supply goods and services to the UK in advance. You should consult whether you need to register for VAT depending on the taxable turnover in the UK and depending on the type of goods and services you offer.
How can I open a bank account in the UK for my company?
There is no requirement to open a bank account for your company in the UK. Opening a bank account in the UK can be challenging due to strict AML and KYC requirements. As a result, it may take a few weeks and months to set up a business bank account in the UK.
You can open a business bank account in other countries, including the EU or elsewhere in the world. You do not necessarily need to travel to such a country for the purpose of account opening. For account opening you need to prepare your corporate and personal documents. In most cases you are required to properly legalize such documents.
Due to all paperwork it is much easier to hire an agent that can help you with preparation of all documents and advise you on bank requirements. Another advantage of using the services of an agent is that you can use other additional services. For instance, our company assists our clients with:
- obtaining registered address in the UK;
- accounting services;
- tax matters.
Alternatively, you can open an online account that will serve you the same as a traditional bank account. You can invoice your clients, receive payments from your clients, withdraw money and pay with credit cards. Online payment accounts are a real breakthrough for online business as it takes just a few hours to open an online account. With online accounts you can access convenient payment instruments without any hassle.
How would Brexit impact UK business?
As of these days Brexit brings uncertainties as to the future of the UK economy. Uncertainty means that the market and British currency may fluctuate. There will be no access to the single market within the EU, hence no free movement of people and goods. But you should keep in mind that there are some businesses that would not be influenced by this. For instance, businesses that do not deal with moving goods and services outside of the UK. And as we already noticed, the UK is popular among online companies that operate overseas and do not make any transaction within the UK.
Such companies gain tax benefits as they do not pay taxes in the UK.