-
By juan
- In Uncategorized
Steps to set up a company in England
Setting up a company in England is a good idea to expand your business opportunities.
First of all, we will answer some basic questions that arise when starting a company in the UK in order to offer you a comprehensive overview.
Following this introduction, you will find the steps to setting up a company the UK, including the two most common legal forms.
Contents
- Types of companies in England
- It is possible setting up a company in England without being a British citizen
- Main taxes paid by a company in England
- Institutions to register with to setting up a company in England
- Opening a bank account for companies in England
- Setting up a company in England as a Sole Trader
- Setting up a company in England as a Private Limited Company
- Recommendations
1. Types of companies in England
In this article we focus on the two most common types: the Sole Trader and the Private Limited Company.
2. It is possible setting up a company in England without being a British citizen
It is possible to set up a company in England without being a British citizen. Moreover, it is possible to be a director or shareholder of a Private Limited Company even without being a resident.
However, a Sole Trader must be a resident in the United Kingdom to obtain a National Insurance Number (NIN), which provides cash benefits for sickness, unemployment and so on.
3. Main taxes paid by a company in England
- Corporation Tax. A tax on the profits of a company that is paid to HMRC.
- VAT. Value-added tax is a consumption tax on goods.
- PAYE & National Insurance, if you hire employees.
- Business Rates, if you use comercial premises.
Regarding Sole Trader:
- Income Tax. A tax you pay on your earnings.
- National Insurance Contributions (NICs). A tax you pay to be entitled to certain benefits and the State Pension.
- VAT.
- You need to keep records.
4. Institutions to register with to setting up a company in England
- Companies House, where to register your company name.
- HM Revenue & Customs (HMRC), where you find your Unique Taxpayer Reference (UTR) to file a Self Assessment tax returns.
- Department for Work and Pensions (DWP), where to register to obtain the National Insurance Number.
5. Opening a bank account for companies in England
To open a bank account you will be required to provide proof of identity and address of the account holder, as well as documentation relating to the company. You will find help here.
6 Setting up a company in England as a Sole Trader
This process is straightforward and quick:
- Choose a name for your company. You can use your own personal name or a business name that you have created, but it can not be the same as one that is already in use.
- Register with Department for Work and Pensions to get a NIN.
- Notify HMRC that you are starting your business and register as a Sole Trader.
- Open a bank account for your company in England.
- If your VAT taxable turnover is more than £90,000 you need to register with HMRC to obtain a VAT number.
7. Setting up a company in England as a Private Limited Company
To set up a Private Limited Company you need to:
- Choose a unique name for your company and register it with Companies House.
- Specify the type of activity of your company in England using the Standard Industrial Classification (SIC) code.
- Register with HMRC. This process takes 24 hours, but requires:
- The name of a company.
- An address in the UK.
- Appoint a director, who does not need to reside in the UK.
- At least one shareholder.
- A memorandum. This is a brief document describing the company’s activity.
- Articles of association. These rules establish the guidelines of the company.
- Proof of identity for each shareholder and directos.
8. Recommendations
Although in most cases it is not mandatory to formalise insurance, it is highly recommended to take out public liability insurance and other types of insurance for your company.
We also recommend that you consult with specialist to help you set up your company in England.
