Enrollment of a company in the country we will consider today by a non-resident takes place in several stages, including the procedure for preparing documents, buying an office, tax planning and opening a bank account. At the same time, for non-citizen founders who wish not only to enroll a company in England, but to receive tax benefits, only a few organizational and legal variations of business are valid.
You should also carefully study the UK tax system, where there are tests for economic presence, deliberate concealment of income from accounting in the taxable base and segregation of assets by type of transactions. As part of this material, we will only talk about the general principles of taxation in England for offshore consolidations and provide a brief guide to working for a foreign company in the UK.
The UK is a reliable state that is among the top ten countries in terms of economic development, is a member of the UN Security Council, G7, NATO, WTO, OECD and other international organizations.
Other advantages of England as a place to enroll an offshore company:
- It is not included in the black list of unfriendly EU countries from among the tax havens, but at the same time it provides all the benefits for applying similar taxation rules to non-citizen companies of international level.
- Not the highest corporate tax rates, which in the UK in 2023-2024 is 19% and can be reduced to 0%.
- A worldwide network of double taxation treaties, which entitles you to pay taxes in only one state.
- If you wish to take root in England, a foreign founder can obtain a tax residence certificate for his offshore company, which immediately ceases to be such and is transferred to the status of an English local company, as well as for himself.
- The UK legal framework is based on Anglo-Saxon law, which provides access to a nominee service and remote business management through a trustee (nominal).
By accessing the UK banking sector, a non-resident company can keep its capital in a secure financial system or use this instrument for personal purposes. In the latter case, it should be recalled that in the UK, all residents pay tax on personal worldwide income. Zero rate eligibility may arise for certain reasons, including the presence of a foreign domicile.
How to open a worldwide company for foreigners.
Enrollment of a company in the UK by a non-resident takes place in several stages, including the procedure for preparing documents, renting / buying an office, tax planning and opening a bank account. At the same time, for foreign founders who wish not only to enroll a company in England, but to receive tax benefits for offshore, only a few organizational and legal forms of business are obtainable.
You should also carefully study the UK tax system, where there are tests for economic presence, deliberate concealment of income from accounting in the taxable base and segregation of assets by type of transactions. As part of this material, we will only talk about the general principles of taxation in England for offshore companies and provide a brief guide to registering a non-resident company in England.
How much does it cost to open an LLC in the UK
The cost of a company in England depends on the form of business, the number of employees and the chosen niche. The standard price for registering an LLC in London will be only £20, but only in person, which is not available to non-residents without a type of residence work visa and UK resident status.
But even if the enrollment was successful and inexpensive, you should take into account all the additional financial burdens that come with an English company like an legal company:
- an office in England, which will need to be rented or bought;
- enrolling with the tax office;
- hiring an accountant as an opportunity to properly organize tax payments and not violate reporting deadlines in the UK;
- services of a resident director (nominal value), which will be required to open a bank account;
- current expenses for organizing a company in England, etc.
Procedure of obtain
If you want to conduct business in strict accordance with European legislation and become a desirable partner for dozens of successful companies around the world, consider England as one of the main options. Here you can easily both buy a ready-made and “promoted” business, and start promoting a startup without facing bureaucratic obstacles or widespread corruption. Of course, registering a company in England has its pitfalls, but knowing the peculiarities of local legislation, you can successfully bypass most of them.
You must do the following:
- come up with a company name and check it against the register of other company names for uniqueness;
- determine the codes of the company’s activities;
- appoint a director – without him, a start-up business in England simply cannot work;
- appoint a company secretary (natural or legal person);
- determine share capital and select shareholders;
- determine whether the company will have one or more persons with significant control, directly or indirectly affecting its activities;
- in difficult cases – to develop a memorandum of association that establishes the rules for managing the company, and its charter, which outlines the goals of the company and the size of its share capital.
It is very important that a business in the UK can operate without you: if you do not actually live in the country, it is very convenient to use the services of nominees (shareholders or directors) who are responsible to you for the activities of the company. But be careful – in order not to become a victim of fraud, it is better to choose a trusted company with a good reputation.
Business taxation in England
All businesses that appended in the UK and having the status of a resident of the jurisdiction are required to pay tax on worldwide income at a rate of 19%.
In the event that a business is recognized as offshore (non-resident), tax is charged only on profits that are formed in the country of incorporation (England). There is no tax on foreign sources, but it can be collected together with a fine if the audit of the business reveals intentional tax evasion.
Documents required to open a bank account in England
All banks, especially retail ones, carry out thorough checks of the business and its director for reliability. They must be sure that your company really exists and is not involved in illegal activities. You may be asked for the following documents (in English or with a notarized translation):
- identity card and proof of address of the director of the business;
- a detailed description of the company’s activities;
- potential cash flow of the company;
- documents confirming the legality of incoming and outgoing payments.
In any case – if you have a lot of inspiring business ideas, opening a business in the UK will not be a task that is difficult to cope with. The main thing is to go through all the steps necessary for enrolling a business step by step, as well as carefully and timely comply with all the requirements of British law, as their failure to comply can threaten with quite unpleasant consequences, up to visa cancellation.