United kingdom 2019-03-15T12:19:34+00:00

UNITED KINGDOM

Country’s geography & information in brief: Great Britain or the United Kingdom of England, Scotland Wales & Northern Ireland is situated in the West Europe on islands to the north from France. State structure – constitutional monarchy. Major currency – pound sterling. Official language – English.

Limited Liabiltiy Partnership (LLP)

Entity type: Limited Liability Partnership (LLP) registered in England, Scotland & Wales.

Directors: LLP Law of 2000 comprises that an LLP may be managed by its members, who may also act as directors.

Members: Minimum number – 2, may be private or legal persons, residents of any country.

Secretary: there are no special requirements concerning the secretary, but one of the members can be a secretary.

Authorized capital: No capital requirements. No shares.

Names’ restrictions: name shall end with “LLP”.

Requirements: Company must have a registered address in GB.

Information about the beneficiary: the register of directors & secretaries in GB is public. Information about the beneficial owner has to be filed to Registry from 2016.

Audit & financial reports: it’s necessary to keep books, prepare & file annual return, financial accounts to the Companies House & Inland Revenue.

Taxation: UK LLP is tax transparent entity – all the profit is shared by the partners, & only afterwards is subject to the income tax where the partners reside or are registered. Partnerships are not considered as companies in GB, therefore they are not liable to the corporate income tax. For detailed information about taxes & fees please visit GB Inland Revenue web page http://www.hmrc.gov.uk/

Additional information: It is profitable to use a partnership when making international intermediary deals. The partners are liable to pay out taxes, meanwhile they can be non–residents of GB nor taxpayers elsewhere (if these partners are foreign off-shore companies or private persons & in countries of their residence sources of income in other territories are not taxable). Thus if a company doesn’t get benefits in Britain, it is not liable to British taxes. The following accounts shall be filed by an LLP:

  1. Annual Return includes registered address, beneficiaries & management bodies of the company. It is to be filed every 12 months from the formation date. The dead line is within 28 days.
  2. Accounts include information about company’s financial activity. The first account is due to be filed within 9 months from the moment the account period ends. By default the account period comprises the end of the month following the anniversary month of the incorporation. Considerable fines may be imposed for late accounts filing. The account shall be made on the basis of bank statements, contracts, agreements, invoices. If a company is above audit threshold the UK audit has to be appointed. If a company has less turnover or personnel or assets, than its accounts are prepared by an accountant, signed by the partners & filed to the Companies House by the secretary company.

Article about Scottish LImited Liability Partnerships can be found here.

Private Limited Company

Entity type: Private Limited Company registered in England, Scotland & Wales.

Directors: Minimum number – one, a private person or 2 if one of them is a legal person the other must be a private one, residents of any country.

Shareholders: minimum number – one. Shareholders may be private or legal persons, residents of any country.

Secretary: not mandatory.

Authorized capital: standard declared capital is of 1 000 GBP.

Names’ restrictions: name shall end with “Limited” or “Ltd”. The use of sensitive words is not allowed.

Requirements: Company must have a registered address in GB.

Information about the beneficiary: the register of directors & secretaries in GB is public. Information about the beneficial owner from 2016 has to be filed to the Companies House.

Audit & financial reports: it’s necessary to keep books, prepare & file annual return, financial accounts to the Companies House & Inland Revenue.

Taxation: for detailed information about taxes & fees please visit GB Inland Revenue web page http://www.hmrc.gov.uk/

Additional information: LTD per incorporation are residents of GB & accordingly pay out tax from their worldwide income. The following accounts shall be filed:

  1. Annual Return includes registered address, beneficiaries & management bodies of the company. It is to be filed every 12 months from the formation date. The dead line is within 28 days.
  2. Accounts include information about company’s financial activity. The first account is due to be filed within 9 months from the moment the account period ends. By default the account period comprises the end of the month following the anniversary month of the incorporation. Considerable fines may be imposed for late accounts filing. The account shall be made on the basis of bank statements, contracts, agreements, invoices. If a company is bellow audit threshold, financial account may be prepared & filed to the corresponding authorities by the company’s accountant & signed by the company’s directors without any help of an auditor. If a company haven’t carried out any business it may file so called Dormant Accounts in special form. That can be done by its secretary.

LowTaxCompany.COM team will help you with company formation in the UK as well as all related services. Contact us today!

Article about the United Kingdom Limited Liability Partherships can be found here.