These days, when the UK is mentioned, Brexit often is too, especially when international business is the topic. But did you know, that even with Brexit in mind, the United Kingdom (consisting of England, Wales, Scotland and Northern Ireland) is still a very attractive jurisdiction for company incorporation, for a number of reasons?
Some of the most important reasons contributing to this jurisdiction’s popularity are:
- The fact that company incorporation can be done online.
- That no physical presence is required in the UK in order to set up a company.
- The process is very fast, and a company can be incorporated in just a couple of business days.
- The UK is of course, if not the most reputable jurisdiction for this purpose, then at least one of the top jurisdictions in the world, and considered very high level.
- The set up makes it easy to manage your business remotely if needed.
- There is no need for annual meetings or similar in the UK every year, as is the case with some other jurisdictions. Annual meetings are required, but they can take place anywhere in the world.
- If you conduct no business or trade within the UK, no corporate tax will be levied.
- There is no minimum authorized capital for UK corporations.
Requirements for company incorporation in the UK
In order to incorporate your company here, you will need:
- A name for the company. Naturally, this name needs to be unique, so that it is not similar to already existing corporation names in the country. What is a bit more unusual in the case of the UK is that there are also certain words that you are not permitted to include in your company name, as these may be misleading. Some of the words companies are banned from adding to their names are Crown, Empire, Imperial, Royal, Windsor, Bank, Assurance, Building Society British, Great Britain, National, United Kingdom, English, England, Scottish, Scotland, Welsh, Wales, Irish or Ireland. (Interestingly, you may add “UK” or “GB” to a company name, should you wish to do so)
- An address for the company.
- At least one director, who does not need to be a UK resident.
- At least one shareholder, and this can be an individual or a company, depending on your preference.
- You will also need a memorandum and an articles of association document in place when the incorporation takes place. (Porat Group naturally assists with the creation of these for our clients who do the process with us)
- If you are considering incorporating a company in the UK, you should also be aware of the fact that all UK companies are required to submit regular, annual reports in order to maintain their registration. These reports need to include information about all income, expenditure and accounting, as well as an annual confirmation statement to verify the corporate details and an annual Company Tax Return.
Are there any downsides to UK company incorporation, compared to other jurisdictions?
Access to local bank accounts and other payment options may be limited for those opting for UK company incorporation in some cases, as the banks and payment providers are aware of the fact that many foreign companies and individuals choose to incorporate in the UK without strong ties to the country.
With careful planning, Porat Group may be able to assist those needing a solution for this, before or after a UK based company is formed, however, which is why we recommend working with us for both the company incorporation process itself, and on opening a payment infrastructure in addition to that.
If you are interested either in incorporating a company in the UK or in a comparison of this jurisdiction to some of the other top jurisdictions for company incorporation worldwide, contact us in order to book a consultation and one of our associates would be delighted to tell you more.