United Kingdom (UK)

General Information on United Kingdom
UK Company

General Information on UK:

About UK:

The United Kingdom consists of England, Scotland, Wales and Northern Ireland and can be found in the Western Coast of Europe. The United Kingdom is a hereditary monarchy, with Queen Elizabeth II being the Head of State. It has a population of approximately 58 mil., out of which about 8 mil. live in London.

Legal system in UK:

Common Law.

UK Economy:

The UK is considered as one of the world's greatest trading powers and financial centres. Its economic power is amongst the top four in Western Europe, with large coal, natural gas and oil reserves and energy production. It is a leading financial services provider, particularly in banking services and insurance services.

Currency in UK:

British Pound (GBP or STG)

Language in UK:

English is the official language

Time Zone:

(GMT 00:00)

UK Company:

Type of a UK Company:

UK Private Limited Company
UK Public Limited Company

Company Law in UK:

Companies Act 1985 (as amended)
Income and Corporation Taxes Act 1988.

Capital requirement of a UK company:

UK Private Company:

Minimum issued capital - 1 share.
Usual authorized share capital - GBP1,000.

UK Public Company:

Minimum issued capital - 2 shares.
Minimum authorized share capital - GBP50,000, of which GBP12,500 must be paid.

Classes of shares: Ordinary shares, deferred shares, preference shares, redeemable shares, shares with or without voting rights.

Restrictions on activity of a UK company:

A UK Company is not allowed to undertake business in banking, insurance, financial services, consumer credit related services and employment agencies, unless special consent or license is given.

Taxation of a UK company:

The UK enjoys lower corporation tax rates in comparison to other EU countries and a UK company can be used as an effective low tax vehicle. Companies pay capital gains tax and corporation tax at the rate of 20%, when net profit before tax does not exceed GBP 300,000. When net profit before tax reaches GBP 1.5 mil., corporation tax is charged at the rate of 30%. Companies engaged in international business have many opportunities to reduce their taxation to 0%.

Double Tax Treaties between UK & other countries:

100 double tax treaties. UK has more treaties than any other sovereign state.

Annual Returns of a UK company:

Yes. Annual Return filing fee: GBP 15.

Annual License Fee in a UK company:

NIL

Annual Financial Reporting of a UK company:

Yes, but a company whose annual turnover does not exceed GBP 1,000,000, is exempted from audited financial statements, and the directors must certify the accounts.

Registered Office & Registered Agent in UK:

Registered Office: Must be maintained in either England or Wales.

Registered Agent: No.

Company Secretary in a UK company:

Yes.

Directors in a UK company:

UK Private Company:

Minimum of one. Can be of any nationality and residence and can be a physical person or a corporate entity.

UK Public Company:

Minimum of two. Can be of any nationality and residence and can be a physical person or a corporate entity.

Shareholders in a UK company:

UK Private Company:

Minimum of one.

UK Public Company:

Minimum of two.

Disclosure of Beneficial Ownership in a UK company:

Disclosure of directors in a UK company:

Yes, but anonymity can be retained by the use of nominees.

Disclosure of shareholders in a UK company:

Yes, but anonymity can be retained by the use of nominees.

Confidentiality in a UK company:

Anonymity can be retained by the use of nominees.

Bearer shares in a UK company:

Yes, provided they are held by a custodian.

Exchange controls in a UK company:

None

Language of Name in a UK company:

Can be incorporated using any language in Latin Alphabet.

Name restrictions in a UK company:

Any name which the Registrar considers undesirable, obscene or offensive and names such as royal or imperial, or which suggests the patronage of the U.K. government.