Setting up a company in the European market should not be ruled out as other country markets. Approximately 25% of Global Wealth syndication is in the European Territory.
It also has the biggest consumer market in the world. It is a synergy of 27 member states. The internal market for services to be around 4$ trillion by the World Bank.
It is also one of the most highly skilled continents in terms of labor force & also technology.
Oversees & Strategic alliances are preferred with Europe because of the following:
- Geography (Centrally located)
- Historical Trading Ties
- Cross-Border Syndication
- European Union Policies affecting trade facilitation with various countries.
Also, there are comprehensive free trade agreements effected between the US & European Union, fusing the world’s two largest economies.
There are various Free Trade Zones in Europe offering Tax Exemptions for international investors:
- Le Verdon Free Zone in France
- Bourges Free Zone in Bulgaria
- Duisburg Free Port in Germany
- Liverpool Free Port in the UK
There are certain Tax-efficient jurisdictions as well such as Guernsey, Isle of Man, and Jersey which are incentivizing economies around the world to invest further.
PRE-REQUISITES INFORMATION OF A UK COMPANY:
- A Company can be incorporated in the UK with just one shareholder or one Director.
- No Minimum Capital Requirements
- The process is much quick & cost is low
- No need to use a Lawyer, Magistrate or Notary. (However, it is strongly recommended by UK Law to have a legal counselor Company Secretary for Oversees Directors who start-up business in the UK)
Steps In Incorporation of Company in United Kingdom :
- Choose a company name & make a search on the online name application portal or directory.
- All UK companies must have a registered office space in the UK Region only.
- All the documents pertaining to Company Incorporation must be filed with Companies House in the UK Government Agency.
- Checkout Standard Industrial Classification SIC of Economic activities from Companies House; apt for the company.
- Common Seal is mandatory if it’s an oversees incorporation for the execution of the legal documents & verifying their authenticity.
- In order to bail out the incorporation process along with the opening of the Bank Account for vetting, documents involved must be apostilled.
- Certificate of Good Standing from UK Registry I.e. Companies House has to be issued which is an official document that verified the registration & status of the company in the picture.
- Services of a certified accountant & a company secretary based in the UK, must be sorted for in order to get the registration process smooth & legible.
- Obtaining VAT Registration upon the applicability of local taxes from HM Revenue & Customs.
Company formation in the United Kingdom is perhaps the easiest and least expensive country in the world in which to establish a limited company and the strength of the UK territory, together with the strong reputation that accompanies UK companies globally makes this country one of the most preferred locations to establish a business.
Within the European Economic Area (EEA), the simplicity of conducting business across international boundaries leads many business owners to choose the UK as their favored place of set-up. UK law, of course, places no trading restrictions on companies registered here so the company will be able to carry out its activities anywhere in the world.
Dependent upon local tax legislation, if a UK company does not carry out any trading activities in the UK and it is managed oversees, it is possible to be treated as a non-resident for corporation tax in the UK. This may depend upon whether a ‘Double Tax Treaty’ is established between the UK and your country of operation.
Also, anti-money laundering regulations are checked with the KYC & AML Documents so that any illegitimate foreign capital is not entertained.
· A Companies House should approve your company as much as 3–4 hours provided the filing is accurate.
FEE STRUCTURE:
- Online filing through the inbuilt software — Standard Fees 10 Euros
- Web Incorporation through Companies House Portal — Fees 12 Euros
- Paper filing of IN01 Form to the appropriate office — Fees — 40 Euros
TAXATION STRUCTURE:
The UK tax year dates are set from 6th April of one calendar year to 5 April of the subsequent year. Thus, the UK tax year is often denoted as 2016/17 for the current tax year.
Most corporations in the UK are levied 20% tax on their net profits, & should file a separate company Tax Return with HMRC. The applicable UK corporate tax rate depends on the level of company profits, applicability, as a foreign company with a UK branch or office, or if some other sort of entity.
UK Dividend Tax is not required to be paid on the first 5000 GBP of dividend received in a tax year.
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