Setting up a business in England
Many people dream of having their own business that brings profit and guarantees higher living standards. And setting up a business on a stable market increases chances of a better life. The UK market is what you need in this case. For many years already the Doing Business 2018 report ranks the UK in the top 10 on the ease of doing business and second among European countries.
The UK is a kingdom that includes England, Wales, Scotland and Northern Ireland, and each country is different in terms of opening and doing business there. For a layman, it is not easy to understand all the differences and peculiarities, so it is recommended to seek professional advice. Imperial & Legal offers a wide range of services for opening and managing companies. You have nothing to worry about – our experts will take care of all immigration, legal, financial and accounting matters.
Register a UK company
Setting up a company is a straight-forward and quick procedure both in theory and in practice. Everything can be done online from your home. The same applies to filing tax returns, reports and paying taxes. That’s what you generally need to do:
- Register a company with the Companies House. For this you need to:
- choose a name and check it for availability;
- appoint at least one director and one shareholder;
- prepare standard Articles and Memorandum of association, or customise them to your needs;
- identify share capital.
- Register with the HM Revenue and Customs for corporate tax purposes. If a business’ VAT taxable turnover is more than £85,000 you must also register for VAT.
- Arranging for an employer’s liability insurance.
Types of business
If you want to open a company in England, you need to choose a form of incorporation based on the type and scope of activities to be carried out by that company. Three most common business types are:
- Sole trader. It is the easiest form as it doesn’t involve the Companies House; all you need to do it to register with the HMRC as a self-employed. You’re personally responsible for any losses your business makes and fully liable including up to your personal finances and assets. You are required to complete a Self-Assessment tax return every year, pay income tax on your profits and national insurance contributions.
- Limited liability company. Shareholders of the company all have limited liability and they are only responsible for business debts up to their share in the company and not more. The company must be registered with the Companies House and company’s records must be kept and updated there. The company must also have at least one director and secretary. Profit is distributed after corporate tax has been paid.
- It is another form of running a business with two or more members or partners (both individual and corporate) that are personally liable for any debts and losses of the business up to the amounts they paid up on registration unless otherwise stipulated in an agreement. There is no tax on the partnership’s profit; however, each partner must pay taxes on their income received from the partnership. Normally, if one of the partners passes away or goes bankrupt, the partnership must be dissolved immediately.
Each form of business has its own peculiarities that you must be aware of. It is not easy sometimes to know exactly what needs to be done but our experts would be happy to help you with setting up your business.
Starting a business with professional help
Imperial & Legal will save you time and money when it comes to opening a company in England. We offer the whole range of services for company formation and management in England, including legal, immigration, financial and accounting services.
Our specialists have been working in these areas for many years already which enables them to form a company or trust, open a bank account, do tax planning and many more hassle-free and smoothly for a client. We only employ qualified staff with theoretical and practical expertise that know what to do in any situation.
All you need to do is call us or leave a message on the website and we will come back to you.