Business entities in UK
Healy Consultants will assist our Clients with incorporating the optimal British corporate structure. There are several ways of doing business in UK, the most common being the registration of a limited liability company.
The British limited liability company
- Multinationals wishing to set up a subsidiary in UK will use the simple limited liability company requiring i) a paid up share capital of just £1 ii) and 1 shareholder and 1 director (no need for resident director). The Companies House is responsible for the registration and the process is straightforward and can be completed within 1 week;
- After the company has been set up in UK, an annual return must be delivered to the Companies House at least once per annum. A LLC in UK is also subject to corporate income tax (standard rate of 20%) and must hence file financial statements to the tax authority.
The British public limited company
- This business entity requires i) a minimum capital of £50,000, ii) 2 shareholders and 2 directors (no need for resident director) iii) a qualified company secretary and iv) registered at Companies House;
- After the company has been set up in UK, a ‘confirmation statement’ must be delivered to Companies House at least once per annum. PLC in UK will be subjected to 20% corporation tax.
The British limited liability partnership
- This business entity requires at least two partners but no minimum contribution is set by the UK Government;
- The British LLP must submit a partnership Self-Assessment tax return to HM Revenue and Customs (HMRC) annually. All partners have to submit i) an annual personal self-assessment tax return ii) pay income tax on their share of the profits earned in the partnership and iii) pay National Insurance.
The British representative office
- To establish this business entity, you will have to be registered with both the Companies House and HM Revenue and Customs (HMRC). A resident representative is required but, like most other UK business entities, there is no minimum capital requirement. Additionally, representative offices are not required to pay corporation tax.
The British branch office
- Likewise, to set up a Branch office in UK, it requires i) a resident director ii) no minimum capital requirement and iii) registered with Companies House;
- A branch office is subject to a 20% corporation tax. The United Kingdom does not levy any additional tax on branch remittances to their overseas head office;
- A branch office is required to notify Companies House as and when the following changes occurs: i) company details ii) directors and iii) branch details.
|LLC||PLC||LLP||Rep Office||Branch Office|
|How long to set the company up?||1 week||2 weeks||1 week||1 week||2 weeks|
|How long to open company bank account?||4 weeks||4 weeks||4 weeks||4 weeks||4 weeks|
|Wholly Foreign owned?||Yes||Yes||Yes||Yes||Yes|
|Minimum paid-up share capital?||£1||£50,000||None||None||None|
|Must file annual corporation tax return?||Yes||Yes||No||No||Yes|
|Tax Registration Certificate required?||Yes||Yes||No||No||Yes|
|Corporate Bank Account recommendation||Citbank||Lloyd's||Barclays||Citbank||HSBC|
|Does our Client need to travel?||No||No||No||No||No|
|Resident director/representative required?||No||No||No||Yes||Yes|
|UK shareholder required?||No||No||No||No||No|
|Minimum directors/representatives allowed?||1||2||2||1||1|
|Minimum shareholders/partners?||1||2||2||Parent company||Parent company|
|British resident company secretary required?||Yes||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors?||Yes, see their website||Yes, see their website||Yes, see their website||Yes, see their website||Yes, see their website|
|UK Corporate Tax Rate?||20%||20%||0%||0%||20%|
|Annual financial statements required?||Yes||Yes||Yes||Yes||Yes|
|Statutory audit always required?||No||Yes||No||No||No|
|Allowed to issue sales invoices?||Yes||Yes||Yes||No||Yes|
|Allowed to sign contracts?||Yes||Yes||Yes||No||Yes|
|Allowed to import and export goods?||Yes||Yes||Yes||No||Yes|
|Can rent an office in UK?||Yes||Yes||Yes||Yes||Yes|
|Can buy UK property?||Yes||Yes||Yes||No||Yes|
|Can own equity in other UK companies?||Yes||Yes||Yes||No||Yes|
|Estimate of total business setup costs in Yr. 1||£5,790||£8,890||£5,990||Contact us||£6,720|
|Estimate of total annual costs thereafter (excl. accounting and tax fees)||£1,140||£1,875||£1,140||Contact us||£1,820|
|Sample Engagement fee Invoice||Contact us|