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By laura
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UK COMPANY, EVERYTHING YOU NEED TO KNOW
UK company, everything you need to know about setting up a business. Despite the perceived complexities post-Brexit, opening a business in this country remains a viable option due to the attractive tax benefits offered. In this article, we will provide comprehensive information on everything you need to know to successfully set up your company in the UK.
Everything you need to know before setting up a company in the UK
Despite the United Kingdom’s exit from the European Union through Brexit, it remains a member of the European Economic Community. Consequently, foreign nationals still have the opportunity to establish businesses in the UK.
Businesses operating within the UK are subject to taxation at their place of registration. Additionally, if a business issues invoices in other countries, it must also comply with the tax regulations of those respective jurisdictions.
The process of establishing a company in the UK is relatively straightforward, and the business tax rates are comparatively lower than those in many other countries.
Everything you need to know about types of business in the UK
Firstly, it is essential to determine the appropriate business structure for your venture. You may choose to operate as a Sole Trader or self-employed individual, or alternatively, you may opt to establish a Limited Company.
Everything you need to know about becoming a Sole Trader (self-employed)
A Sole Trader business is equivalent to being self-employed. If you choose this form of business, the following requirements must be met:
– Apply for a National Insurance Number.
– Keep a record of your business expenses and profits.
– Register to file your tax return (Government Gateway).
– You do not have to declare VAT. Only if your profits exceed £90,000.
– You can carry on business under your own name or give your company a different trading name.
– If you decide to give your company a different name, you must check that it is available and follow several rules.
Everything you need to know about setting up a Limited Company
Limited Companies in the UK have similar characteristics to Spanish limited companies or limited liability companies. Their tax obligations differ from those of a Sole Trader. If you decide to establish a Limited Company in the UK, you will need to:
– Choose a name for your company and an address to carry out your business activities.
– Register your company name, address, members and company particulars with the Companies House.
– Appoint the director(s) of the company and their duties.
– Determine who the shareholders and guarantors are. You need at least one shareholder who may also be the director.
– Draw up a memorandum specifying the articles governing the company.
– Register to pay corporation tax with HRMC. You can do this through their website or by post by submitting form IN01.
– Register all the details of the new company with Companies House.
Other things you need to know about your business in the UK
Now that you are clearer about the types of companies you can set up in the UK and their corresponding obligations, here are the steps you need to follow to set up your company in the UK. Here are the steps you need to follow to set up your company in the UK:
1- Decide what type of company you want to set up in the UK. You have already learnt that they are different depending on their configuration, the number of people who form them and their responsibilities.
2- Open a UK bank account. Most banks in the UK offer specific solutions for new companies. The only drawback is that these accounts sometimes have a high maintenance cost. We recommend that you look at online banks such as Wise or Revolut, as they offer more competitive rates.
3- Remember that, depending on the type of business, you will probably have to obtain specific licences and liability insurance.