Founding a company in the UK.
Why is it worth to registrate a Company in the UK?
The UK is taking its part in the motivation process, and they are making adjustments where ever they can to improve your companies performance. Did you know? The UK is minimalizing the taxes for starter companies, you can do your activities wish-free WITHOUT pre-noticing its business sector, not requiring any starting assets. AND THE BEST PART OF IT... the local banks are happy to give you a starting credit amount. You only need to assign your business sector on the Annual Return date, and you only need to pay up the taxes if your annual turnover is passing the current income limit, which is £82.000. Simply they are letting you grow and enpower, free from any corruption since it is their benefit too that their companies in the UK become more economic. The UKs administration, laws, processing levels can be confusing, but believe me it is not. It was difficult for us too to create our own company, but since that we became experts creating more and more companies from time to time, encouraging us to help out our foreign partners in the country. Trust is very important for us, please come further to read about us.
The process of the Company Foundation, Step by Step
The company registration in the UK is very simple, it only takes a few hours BUT a seat is necessary in the process to make it happen. Our seating service can give you an address in a Office House either in London or East Grinstead. This service is also available SOLO, which means it is obtainable without a company foundation.
The registration of the company
The companies registration happens in the Companies House. In the process we can offer to look after the name availability for your company and the neccessary administration. The companies registration is available within 3 hours. To make the registration it is a must to select a company formation. We suggest Ltd for starting companies. All the shares within the company are limiting to responsibility taking for the company and guarantee. The companies scope of activites only can take up to 4 sectors and available only from the SIC cod table below:
UK Company Formats
The LTD (standing for Private Limited Company) is working as a closed joint stock company, which has no minimum capital requirement. Two opportunities are possible, on the first hand the shareholders taking on guarantee, that if the company is facing liquidation they pay up a fix ammount. On the other hand, the company registration happens with a basic capital from the shareholders, and taking up responsibility to the capital. When you want to register an LTD, you can do it with £0 althought, we suggest you a £100 starting capital just in case. As for the LTD, your shares is not tradable on the stock exchange.
The PLC (standing for Public Limited Company) is a publicly working joint stock company, and you can trade up your shares on the stock exchange.
The 3rd type is the Unlimited Company, or Private Unlimited Company and by the name it really has unlimited responsibility matter, almost the same as the two before but the purpose of this company formation is when a liquidation happens, the shareholders take on full responsibility for the company.
The LLP (standning for Limited Liability Partnership) : in this format two or more existing companies – enterprise or entrepreneur creates a shared company.
Necessary Documents, Directors Position
To make the company registration possible, you need to attach the shareholders National ID or Passport and Proof of Address. The owners does NOT need to have their own UK address.
At the same time you have to name the director. The director can be a tax employee of the company, or it can be one of the owners, who is only working for his share of the annual return. It is very important who the director is, because later only this person has the right to authorize any kind of administration (including opening a bank account). There can be more directors at the company.
Company registration number
After the company registration (usually it takes up to 1 day for every doccument to arrive), we have our company number. In the UK this number is providing the identity of the Company, as a public information so it is a must to make it seen on the invoices or contracts. You can’t pay tax with this identification. The company is ready for the economic activites.
Starting your activites – HMRC Registration, Bookkeeping, ICO Registration
After the successful creation of the company we are free to start our economic activities, but do not forget to register into the English Taxman HM Revenue & Customs. To make this happen, your bookkeeper can give you a hand. We can help you find the best bookkeepers, referencing some hungarian but experienced experts who are currently doing a bunch of companies bookkeeping. A lot of people doesn’t know their activities can involve a Data Protecting registration (ICO) and can involve thousands of pounds penalties if made incorrectly. Read more about the data protection registration.
Opening a current account in the UK
Sooner or later you will need a current account. When the Annual Return happens and you have to pay in the tax adjunct, or your company receives a benefit you need to have a UK bank account, and your clients will appreciate the transferring option too. Our advice is to open a personal account with the Business account. To make the current account process happen, you have to be in the UK and have to go face 2 face. The banks only take on entrepreneurs for a current or business account if they have an appointment, and at the same time they arrange a business manager for your company who will manage your companies banking administration simple and will be available for your needs any time. The other thing you need for the bank account is a UK address that you need to prove with a muniment, but in most cases it is the UK Driving Licence that makes this check possible. There is an option to open a bank account with a Hungarian or other countries address. You can check on this opportunity through this link.
Tax Number, VAT Number, UK Taxing
After registering into HMRC Services you will receive your companies Tax Number which is a 10 digits authorization code (3 additional digits for the seating code). This number will be your guide for communication or administration with HRMC, and highly not public. The VAT Number, 9 digits auth code the „social tax number” or the „EU Tax Number” can be obtained, but you won’t receive it unless your last years turnover is less than £82.000.
VAT registration is available IF your companies premises are within the EU, or doing INTERNATIONAL economics.
Council tax is payable after the annual turnovers profit which is the year after the success £300.000 is only 20% after £300.001 it is 27%
Read more about UK Taxes
Employees, workers obligations, contributions
To announce an employee to the professional body please read more here. The present contributions are focusing on the employees tax after the monthly salary instalment – advance tax payment and Natural Insurance Number what you have to pay every months 19th day. Summary: income tax 0 – 20% annual £35.000 income; councul tax (NI No): 0 – 12%. You, as the employer company have to pay an additional 0 – 13.8% employers council tax. To calculate taxes, expected profits you can find it here.
Company Foundation Packs, which are the most economic on the current market.
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Inside our bookkeeping service you have the option for the followings: HMRC Registration for the council tax, EU Tax Number Registration, HMRC PAYE Registration.
To learn more about or bookkeeping services, please find us on one of our dedicated landlines.
Any other company formation, additional services, or help you require please don’t hesitate to contact us, we will find the best solution for your problems. If you may have any other questions, please find it in the FAQ.