England

England is a jurisdiction of the United Kingdom, which is the most trusted and popular among business community worldwide. There is quite simple reason for that. The English legal system is highly transparent, the rates of corruption are the lowest among European countries, and bureaucratic obstacles to setting up and running a business are almost non-existent. Financial and tax reporting is simplified as much as possible.

Income taxes introduced in the country are the lowest in Europe. Furthermore, there is a number of substantial tax incentives. In addition to this, any joint-stock company that is registered in England but carries out its activities beyond national jurisdiction is exempted from payment of local income taxes. Here your business will enjoy tangible support of government bodies. You will be able to avail yourself of all the benefits of advanced European infrastructure. Another equally important factor is a high level of education and qualification of the local personnel who can be recruited by your company.

Number of directors

1

Income tax

17.00%

Paid Criminal Code

2.00

Financial statements

Yes

Essential information

  • Office

    A registered office address is mandatory. There must be a company secretary.

  • Directors

    A company must have at least one director of any residency. Nominee director may be appointed, with relevant services being provided by local law firms.

  • Shareholders

    An LLP must have at least two shareholders who can be both individuals and entities of any residency.

  • Meetings

    Shareholders’ meetings are obligatory.

  • Confidentiality

    Information about company directors and shareholders is kept on the public register. It is a downside of the transparency this jurisdiction provides. However, in the case of PLC the privacy issue can easily be addressed by appointing a nominee director.

  • Financial and tax reporting

    Accounting and annual reporting are mandatory. Tax statements are obligatory for taxpayers. Nevertheless, the documentation required is minimized and easy to prepare.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Advantages

  1. country’s prestige and high standing in the international market;
  2. stable banking system;
  3. tax benefits;
  4. great investment appeal;
  5. affordable registration and follow-up services;
  6. protection of shareholders’ interests (liability is limited by contributions);
  7. no foreign exchange control by the State.

What types of companies can be registered in England?

Any entrepreneur who carries out lawful business activities is entitled to set up a company in England, with licensing being required only for banking and insurance.

In terms of organizational and legal form, foreign companies are most commonly registered as Private Limited Company (PLC) that is in fact identical to “OOO” in Russia. Limited Liability Partnership (LLP), or limited liability company by shares, is as well popular form. England is the jurisdiction that provides the most favorable tax treatment for such companies. If these entities operate outside the English territory, no income taxes are to be paid at all.

Taxation: the key points

Income tax rate varies depending on financial results:

  1. up to GBP 300,000 — 20%;
  2. between GBP 300,000 and GBP 1.5 million — 23%;
  3. over GBP 1.5 million — 26%.

VAT — 17%, royalty tax — 22%, tax on dividends — 0%. The United Kingdom has concluded agreements on avoidance of double taxation with a large number of countries (more than 100).

Reporting requirements

Registration of a company entails obligations to ensure record-keeping, file annual declarations, and provide reports to the competent authorities. During the first year, companies are allowed a grace period (9 months) to prepare necessary information.

Criteria for audit exemption:

  1. staff — maximum 50 employees;
  2. annual turnover — not exceeding GBP 6.5 million;
  3. assets worth — GBP 3.26 million or less

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