Setting up or expanding your business in the UK is straightforward. You can choose how your company operates. If you want to incorporate a company as a separate legal entity in the UK, forming a private limited company is the most popular option.
Requirement for United Kingdom Company
|Proposed company name||English|
|Minimum share capital||1 British pound|
|Minimum shareholder||1 Natural person or legal entity|
|Minimum director||1 Natural person|
|Company Secretary||Not compulsory for private limited company|
Tax System in the UK
Sales of most goods and services in the UK is subjected to Value Added Tax (VAT). The standard rate is 20%, where some goods and services are charged at a reduced rate of 5% or a zero rate. Corporation should report for VAT every 3 months. It is recommended to hire account professionals to complete the process to avoid late payment penalty.
Apart from the VAT, the companies are also subjected to Corporate Tax at a rate of 19%.