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Company formation in UK – Limited / Ltd, Legal and Taxation Aspects


Company Type: Private Company Limited by Shares (Limited)


Name: Can be chosen freely, must include “Limited” or “Ltd”
Capital: Nominal capital must be at least 1 GBP (1.40 €), can be increase      at any time, shares do not have to be paid up. It suffices if the founders assume personal liability.
Shares: Company Stakes
Shares Index:     Yes (Register of Members)
Registered Agent         




Entry in the public Register: Company is entered in the commercial register (Company House)
Shareholders: At least 1 partner (Shareholder) can form the company (natural or legal person)
Directors: At least 1 natural or legal person, no professional qualifications required.  
Secretary(Commercial): Yes, but without any legal rights or powers. The secretary acts as administrative in the company, primarily maintaining the lines of communication with the English authorities.  No professional qualifications necessary, can also be a legal person.
Incorporation: reasonable delay
Disclosure of Beneficial Owner: No
Disclosure of Shareholders: Yes
Disclosure of Directors: Yes
Trading Restrictions:  The formation of certain trade and service companies is subject to statutory regulations. They require special authorization or the issue of a license. This applies only to the banking, insurance and investment sectors.


Taxation: Profits and taxed if the company is active in Great Britain. The first 14 000 € of profit are tax free. The starting rate for profits between 14 000 € and 28 000 € is 11.875%. The top rate of 26.97% is levied on profits over 1 million €.


Turnover tax is 17.5%


The company is considered a “ non-resident company” if it does not do business in Great Britain, the management is not resident Great Britain, no shareholders meetings are held in Great Britain and there is no chief executive in Great Britain. These companies are tax free.

Double Taxation Agreements: Yes
Financial Statements:  Yes
Tax Returns: Yes
Accounting: Yes
Annual Reports: Yes, a check is carried out to ensure that the structures (directors, secretary, partners, registered, headquarters) are still correct, must be carried out annually and reported to the English commercial register.
Formation Costs: Reasonable cost.
Annual Running Costs: Reasonable cost


General Information


Area: 244 100 sq km
Capital: London
GDP per capita: 29 570$
Unemployment Rate: 0.047
Population: 59.4 Mio
Language: English
Currency:  Pound Sterling
Rate of Inflation: 0,017
Political Risks: None
Cost of Living: High
Communications: Good
Residence Permit: Not a problem for EU citizens
Legal Systems: Common law, companies Act of 1985 (governing corporations)
Exchange Control: No
Patent Law: Yes
Tax Information Exchange Agreement: Yes



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