How to create a Limited Company in the UK
An English society is constituted quickly and economically and requires little capital to do so. However, both the constitution and subsequent administration require considerable knowledge of English Company Law, as well as experience to adequately comply with legal requirements.
An English company can be formed with as little as € 70 plus VAT. However, this only covers the constitution, not the subsequent administration or any other service.
Social Capital and Management
When creating a company, a certain share capital is required. This capital can be £ 1, but usually reaches £ 100 or £ 1,000. Shares are sold to the owner or owners at face value, that is, for £ 100 or £ 1,000, respectively. The funds received will constitute the initial equity of the company. The owner may provide the Company with additional working capital through a loan.
The company must have a registered office in England or Wales and must have at least one director. And optionally, until now it was mandatory, you can have a secretary as legal representative for exclusively administrative matters. The director and the “legal” secretary of the company cannot be the same person if there is only one director.
If there is more than one director, the position of “legal” secretary may lie with one of them.
The “legal” secretary is a typical figure of English law and of jurisdictions based on Anglo-Saxon Law. This is the official title that is granted to the natural or legal person and whose function is to certify certain types of legal information on behalf of the company, as well as sign other official documents on their behalf, following instructions from the director or directors. A "legal" secretary is not a typist or personal assistant.
Bookkeeping and accounting
The company must submit an Annual Accounts Statement to the British Commercial Register (Annual Accounts to Companies House) each fiscal year, as well as the Corporate Tax Return to the UK tax authority (HM Revenue & Customs) every 12 months. A close professional relationship has been established with various UK public accountants who can carry out these procedures at a reduced cost, offering the same rates charged by these accountants to their external clients.
In the case of companies without activity during the fiscal year, the Accounts of the Inactive Company must be presented in the Mercantile Registry. Filing the Accounts for an Inactive Company is much cheaper than filing the annual accounts for a standard company. In addition, the Company may be exempt from the obligation to file company tax in the UK if it has not had any activity.
In some cases, the Annual Accounts Statement must be audited, and we may recommend the action of independent auditors.
VAT and Corporation Tax
Company Creation United Kingdom - Rodríguez Bernal Abogados Since April 1, 2013, the Corporate Tax Rate in the United Kingdom is 20%. However, the British Chancellor of the Exchequer has announced that the rate will drop to 17% by 2020.
It is not mandatory for a Company to be registered in the UK VAT register unless it expects an annual turnover in the UK of £ 83,000 or more. Although a company has no obligation to register in the VAT registry in the UK, it may nevertheless do so voluntarily at the time it begins to operate.
The Company may participate in any legal activity, including consulting of any kind, online trading, or investment activities. However, it is important to note that the company will be considered a tax resident in the countries where it operates. Therefore, it is desirable to ensure that, where possible, the company's business is conducted through its UK office.
