Register a company with an account in the UK
Company registration in England — all Pros and Cons
Every day the popularity of ordinary offshore companies is falling – it has become extremely inconvenient to use them in the structure of international business due to the great difficulties in opening bank accounts and maintaining confidentiality. Most developed countries have already adopted laws on Controlled Foreign companies (CFC) and joined the automatic exchange of tax information, which has had a significant impact on the structuring of international business. Companies registered in reliable and respectable jurisdictions have come to the fore, which, of course, includes the UK. We will talk about all the pros and cons of registering a company in the UK in more detail later in the article.
Advantages of registering a company in the UK
The choice of countries for the registration of a foreign company is huge, so why should you pay attention to the UK?
1. The speed and ease of registering a company in the UK.
You do not need to wait weeks for the registration of your company – it will appear in the registry literally in 3 (three) days, after which it can already be used in work. The registration process itself does not require much time and effort to prepare apostilled documents from the directors and founders of the company.
2. Low creation and maintenance costs.
The cost of registering a British company is one of the lowest in both Europe and Asia. The reason for this is the combination of two factors: low government fees and high competition among local lawyers and registration companies. Further maintenance will also not ruin you, because in the UK there is no mandatory audit for most companies.
3. Clear and transparent taxation.
In the conditions of total global deoffshorization, the minimum corporate tax rate has ceased to be the main guideline for business. In the first place came the convenience of tax management, the presence of a large network of double taxation treaties and the ability to avoid paying additional taxes as a CFC. All this is offered to the maximum extent by the UK!
4. A reliable legal system.
The legal and judicial system of Great Britain has long become a legend and a model of reliability for other states. It is not surprising that wealthy businessmen often choose the UK as the country of permanent residence, storage of assets and concentration of profits of their business. Moreover, the application of the norms of English law and the consideration of disputes in British courts are ubiquitous in international treaties in any industry – from agriculture to finance.
5. Suitable for both startups and existing businesses.
New projects start in the UK every day. If for some reason the project fails and the company needs to be closed, in the UK it can be done quickly and at no great cost. As for the existing business, the field of application of English companies is huge: holdings, agency companies, operating companies – registering a company in the UK can solve many issues.
6. A large selection of payment systems for opening an account
The UK is home to a large number of various financial institutions and companies, including those opening settlement accounts. The functionality of current accounts with an individual IBAN number is in many ways (but not in all) similar to classic corporate bank accounts. You will be able to accept, send and store funds in a variety of currencies, while working in a convenient online banking. Moreover, the cost of opening and maintaining such current accounts in payment systems is often lower than in banks.
All these factors allow us to unequivocally state that using a company in the UK is convenient! It is very simple to make sure that a company in the UK is suitable for you – contact Antwort specialists. We are always happy to discuss your project and give qualified advice on choosing a jurisdiction for starting a business.
Pitfalls when using British companies
Unfortunately, there are no ideal countries for registration. Let's take a closer look at what pitfalls can be expected by businessmen who decide to create a company in the UK:
1. Difficulties in opening a local bank account.
Yes, that's right. Earlier we talked about the ability to quickly and easily open a checking account in British payment systems, and this is so. But those who want to open an account in a classic British bank will have a difficult time. Local banks open accounts only for local businesses – with a local director, office, employees and customers/suppliers. This approach makes the process of opening a UK bank account very difficult for many companies with foreign shareholders. Of course, a British company can open a bank account with many other European banks, but the inability to have a local bank account in the UK can create inconvenience for business.
2. The corporate income tax rate in the UK is 19%
The presence of a company in the UK is inextricably linked with the need to keep records and pay the appropriate taxes. It is important to remember that from most types of profits, a British company must pay corporate tax at the rate of 19%. This is not the lowest rate in the world, but it is also far from the largest (for example, a similar tax rate in the Russian Federation is 20%).
3. The high cost of maintaining a real office
If you are determined to move, rent a local office and hire local employees, then the UK will be quite an expensive country. Fortunately, not every company needs it. Moreover, there are services that provide services for the joint rental of small offices, which may be enough to confirm the address. Do not confuse such a service with the creation of a real sabstence (economic presence) in the UK.
Should I refuse to register a business in the UK because of the above? Definitely not! These facts may make it unprofitable to use a British company to solve some business problems, but no more.
No matter how much information you find on the Internet about British companies, it is better to contact professionals who know all the features of this jurisdiction once. Ask your legal and tax questions to Antwort specialists – we always find the right answer!