United Kingdom

About the Country

The United Kingdom (UK) or Britain, is a sovereign country in western Europe and it includes the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands. The Country shares a land border with another sovereign state, the Republic of Ireland and is surrounded by the Atlantic Ocean, with the North Sea to its east, the English Channel to its south and the Celtic Sea to its south-south-west, giving it the 12th-longest coastline in the world. It the fourth-most densely populated country in the European Union (EU). The below content will explain you in detail about the requirements for the company formation in United Kingdom (UK), know more about the process of Trademark registration in United Kingdom (UK) and understand the United Kingdom (UK) Legal and Compliance requirements.

United Kingdom

Doing Business Introduction

The Country’s is a developed country and has the world’s fifth-largest economy by nominal GDP and ninth-largest economy by purchasing power parity. It is a great power with considerable economic, cultural, military, scientific and political influence internationally. As per Doing business report of The World Bank – United Kingdom ranks 7 for 2017 survey.

Incorporation - Types of Business Entities

There are several types of entities that can be incorporated in United Kingdom are as mentioned below:

  • Sole Trader
  • Private Limited Company (LTD)
  • Public Limited Company (PLC)
  • Limited Liability Partnership (LLP)
  • Guarantee Company (Non-Profit)

Time Frame for Incorporation of Company in United Kingdom varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimates the time required for the process of Company formation in United Kingdom (UK) to be completed is 3-5 working days.

Benefits of Registration of a Company

The UK attracted and retained over one trillion US dollars of investment: the highest in Europe and the second largest in the world. Below are the advantages of company formation in United Kingdom (UK):

  • Easiest place to set up and run a business in Europe
  • Low tax rate environment for foreign investors
  • Most flexible labour markets in Europe and least barriers to entrepreneurship
  • World leader in innovation
  • Most stable political environments to do business
  • Highest GDP growth rates in Europe
  • Easiest countries to register a property
  • Commitment to improving the planning regime
  • A high standard of living, education and recreation
  • most extensive broadband market among the G7 countries and
  • One of the strongest ICT infrastructures in the world

Tax Registration and Filing

In the United Kingdom, Companies that are resident in the United Kingdom are subject to corporation tax on their worldwide profits, but several exemptions have the effect of focusing corporation tax on UK-related activities.

Corporate Income Tax Rate 20 %
Capital Gains Tax Rate 20%
Branch Tax Rate 20%
Dividends 0%
Interest 20%
Royalties from Patents, Know-how 20%
Branch Remittance Tax 0%
Tax Returns and Accounts To be filed within 12 months after the accounting period.
Large Companies To pay quarterly instalment of Corporation Tax.

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. United Kingdom has double taxation treaties with about 100 countries.

Trademark registration

For trademark registration in United Kingdom (UK), an application needs to be made to the UK Intellectual Property Office. It takes approximately 5-7 months’ timeframe to complete the process of trademark registration in United Kingdom (UK).

The Trademark Registration in United Kingdom (UK) is valid ten years from the date of filing trademark and is renewable for ten years period by paying the renewal fee by the expiration date for an unlimited number of times.  Also, can renew a trademark in the 6 months before it expires and up to 6 months afterwards.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in United Kingdom (UK) for your business. For assistance or advise in the matter of the trademark registration in United Kingdom (UK) or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in United Kingdom:

  • Managers and company directors must usually be at least 16 years old but no upper age limit.
  • No nationality restrictions on who can be a manager or company Director
  • The listed companies or those required to file accounts with the Financial Conduct Authority may be required to prepare their audited financial statements more promptly even though they do not need to be filed at Companies House.
  • The share capital may be increased by allotting new shares
  • A limited company may purchase its own shares but any purchase must comply with Companies Act
  • Arrange the holding of AGM (e.g. provide a location, coordinate the issue of notices to the
  • Shareholders and the counting of proxy votes).
  • Preparation and maintenance of statutory register and minute books
  • Preparation and filing of statutory forms relating to changes in your company, e.g. changes in officers and registered office.
  • Preparation and filing of annual return and AGM documentation
  • YourGlobalPro professionals are fully equipped to assist you with providing company law compliance service, advice and guidance on corporate governance issues.

Accounting Services

The Entities in United Kingdom are required to maintain proper accounting records for each financial year in accordance with the accounting and disclosure requirements of company law and with the Financial Reporting Standards (FRSs) published by the Financial Reporting Council (FRC) or international Financial Reporting Standards published by the International Accounting Standards Board (IASB), as adopted by the European Union.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your United Kingdom Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In United Kingdom, companies/LLPs must have an audit even if it is a public company, a subsidiary company, an authorised insurance company, involved in banking or issuing e-money, Markets in Financial Instruments Directive (MiFID) investment firm, an Undertakings for Collective Investment in Transferable Securities (UCITS) management company, a corporate body and it shares have been traded on a regulated market in a European state. The Auditor can normally be appointed / removed at any time.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals can provide you auditing services as required by your business.

Banking

The Bank of England is the central bank in United Kingdom regulating the Banks in the Country.

The major banks in United Kingdom are Barclays, Bank Leumi, Bank of China, Halifax, HSBC, Lloyds TSB, Natwest, Nationwide. All banks are stable, reliable and offer the same level of services. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The accounts can be opened and maintained in multi-currency and is available for all major currencies with the Banks.

Legal and Compliance

In United Kingdom, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various United Kingdom (UK) legal and compliance requirement to be followed by incorporated entities:

  • No restrictions are imposed on inward or outward investments.
  • An employer must register with the tax authority, HM Revenue and Customs (HMRC), before employing the first employee.
  • To make filings in respect of new employees with the appropriate regulatory body (for example, the Financial Conduct Authority in the financial services sector, and the Solicitors Regulation Authority and Law Society in the legal sector).
  • Public limited companies (plcs) are required to file their financial statements at Companies House within 6 months while the Private limited companies and LLPs are required to file their financial statements at Companies House within 9 months of the accounting reference date
  • The small and medium sized companies/LLPs have an option to file abbreviated financial statements only at Companies House.
  • Doing External company compliance as prescribed under law
  • YourGlobalPro professionals can assist you in United Kingdom (UK) with Legal and compliance requirement.

HR and Employment Law and Immigration / VISA

In United Kingdom, the foreigners are allowed to work on work visas and work permit. Below are some of the important points in relation to HR & employment law in United Kingdom:

  • 48 hours a week on average – normally averaged over 17 weeks
  • Under 18, can’t work more than 8 hours a day or 40 hours a week
  • The employees must to have an employment contract with their employer
  • Employers must provide employees whose employment is to continue for more than one month with a written statement of certain terms of their employment.
  • Employment contract can permit an employer to make limited unilateral changes to the terms and conditions of employment.
  • UK workers who are over school leaving age (currently 16) must be paid the National Minimum Wage (NMW)
  • Daily rest break of 11 hours of continuous rest in every 24-hour period.
  • Weekly rest break of 24 hours of continuous rest in every seven-day period
  • All workers have the right to 5.6 weeks’ paid holiday each year.
  • A week means a normal working week for that individual (although the maximum statutory entitlement is 28 days.
  • Holiday pay is paid at the same rate as normal pay.
  • Individuals who do not qualify for the right of abode and who wish to live and work in the UK must apply for the appropriate immigration document and/or entry clearance (visa).
  • The non-EEA nationals, and persons without settled status or a right of abode in the UK who wish to come to the UK for the purpose of employment must obtain the requisite employment authorization entry clearance for that purpose before traveling to the UK.
  • Individuals who fall into certain categories [Commonwealth nationals, Sole representatives of foreign firms, representatives of foreign governments – representatives of foreign newspapers, broadcasters or as employees of the United Nations or other international organizations] do not need permission to work in the UK but must obtain prior entry clearance from a British diplomatic post before entering the UK.

Country Statistics

Capital London
Largest City London
Area Total 242,495 Sq. Km.
Population 65,110,000
Density 255.6 / Sq. Km.
Currency Pound sterling (GBP; u00a3)
Government Unitary Parliamentary Constitutional Monarchy
Official Language English
Religion Christians: 59.5% Irreligious: 25.7% Muslims: 4.4% Hindus: 1.3% Jews: 0.4% Other religions: 1.5% Unknown: 7.2%
Government Offices Hours Mondays to Fridays: 9:00 a.m. u2013 5:30 p.m.
Business Offices Hours 09.00 u2013 17.00 (Monday to Friday).
Banks and Exchange Houses Hours 09.30 u2013 16.30 Monday u2013 Friday.

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