What Can You Do with an Offshore Company in the UK?
Company formation in the UK can be set up to conduct any kind of legal business. Your Offshore Company in the UK can also be used for operating within licensed markets, as long as the appropriate licensing is acquired as well.
Background & General Outline
Are you considering company formation in the UK?
The United Kingdom of Great Britain and Northern Ireland, otherwise known as the UK, comprises four countries; England, Scotland, Wales, and Northern Ireland.
The UK has the world’s 6th largest economy and the 9th largest in terms of purchasing power. It is a high-income economy and an even higher human development index rating.
Britain is one of the world’s leading powers and is a member of the Commonwealth of Nations, G7, G20, NATO, Council of Europe, the OSCE, the World Trade Organisation, the European Economic Community, and the OECD. It withdrew from the European Union on 31 January 2020.
The main economic industries in the UK are services, manufacturing including cars, construction and tourism. Its financial services sector contributes over GBP 132 billion to the economy each year, representing 6.9% of the total output.
Asides from being a global power in finance and business, the UK is a stable and highly developed country. It offers multiple opportunities for company incorporation and other business interests.
Political Structure & Legal System
The UK is a unitary state with a constitutional monarchy and a Parliament. Members of parliament and the Prime Minister are elected through public general elections. There are two houses within Parliament; the House of Commons and the House of Lords. All laws must be approved by the Queen before they are enforced.
The UK’s legal system is based on common law which consists of passing legislation and creating precedents through case law. Civil law covers most business mattress and is dealt with at County Courts but these can be escalated to the High Court when big amounts of money are involved. A company formation in the United Kingdom would generally be governed by Company Law.
Name Restrictions for Company Formation in the UK
If you decide on company formation in the United Kingdom, you need to be aware of certain naming restrictions. The UK has specified a number of words relating to regulated professions that cannot be used. These include architect, Bachelor of Medicine, Building Society, Chemist, Druggist, Pharmacist, Chiropractor, Credit Union, Doctor, GP, and Solicitor. These are just a few examples as the list is extensive.
It’s prohibited to use Britain or British, or any word that could be construed as being related to the government, monarchy, or state. As in other countries, offensive words are also not allowed.
An offshore company incorporated in the UK is subject to a number of trade restrictions. These include Iran, Venezuela, the Democratic Republic of Congo, Azerbaijan, Armenia, Burundi, and some West African States. Depending on the nature of your business, it’s best to see what restrictions are in place on a case-by-case basis.
Taxation in the United Kingdom
Corporation tax is payable on any offshore company in the UK or a branch of a foreign company. Tax is payable on profit, investments and revenue generated for selling assets for more than they cost. UK-based companies pay tax on all national and international profits, but if it’s just a UK branch, only UK revenue is taxable. If you are considering company formation in the UK, the rate of tax is 19%.
Double Taxation Treaties
The UK is a party to over 130 double taxation treaties making it one of the largest taxation networks in the world.
Accounting & Financial Statements
If you have an offshore company in the UK, you are obliged to keep accounting records and prepare a company tax return to tell you how much tax to pay. This must be submitted no later than 12 months after the end of the accounting period.
Disclosure of Beneficial Owner
Company formation in the UK requires that the beneficial owner or those with significant control are registered with the government. This register is available to the public. The only way to avoid having such details published is if the individual can prove that doing so would put them, or someone living with them, at risk of danger.
Capitalization Requirements for Company Formation in the UK
If you choose company formation in the UK, you are not required to adhere to a minimum capital requirement and the share capital must be any value above zero.
An offshore company in the UK is not subject to any exchange control restrictions. Following WWII, the country had some of the toughest rules in the world but the last of these was removed in 1979.
How Much Does an Offshore Company in the UK Cost?
Take advantage of our Company Formation Package and get your Offshore Company in the UK for as little as €800. You can also benefit from our special renewal package and additional optional services. To get full price details, related documents and services click on the button below:
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More Locations to Incorporate Your Company
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