A company in England
The own company in England is the dream of many investors, but registering a company abroad is usually associated with many difficulties. To avoid them, it’s worth using the help of professionals. The services we offer include both comprehensive legal assistance and commercial courtesy at all stages of establishing and running your own business in the United Kingdom.
Open a business in England
Open a company in England is one of the easiest in Europe. The United Kingdom has one of the most friendly English-language online company registration systems. We are able to complete most of the reporting obligations of an English company via the Internet using the Companies House portal. British law distinguishes between so-called private companies (Private Companies, Ltd.) and public companies (Public Companies, PLC). Public companies are those companies that can offer shares / market shares for public sale (as publicly traded joint-stock companies operate in Poland). In the case of private companies – the equivalent may be a Polish limited liability company – UK law does not impose any requirement on the amount of the minimum share capital.
Share capital and company registration in England
Symbolic £ 1 is assumed as the amount of the share capital. A Polish citizen may establish a Ltd. company on similar terms as a British citizen, although the problem may be opening an account. Therefore, currently establishing a company in the UK is the best solution for entrepreneurs who want to cheaply and quickly register their first company outside Poland for international operations or investors who want to get access to financing from investors and investment banks located in London City. Opening a company in the UK in the form of a company Ltd. is widely recommended in industries such as: IT, translation, and e-commerce. Companies in the UK often set up freelancers, i.e. bloggers or programmers.
The establishment of Ltd. in the United Kingdom is suitable for operations and businesses in which the following criteria are met.
There are no employees employed under employment contract or mandate who live in Poland. Only the Director of the Ltd. company can live in Poland and at the same time settle taxes in Great Britain. In the case of employment of employees permanently residing in Poland, it is necessary to establish a Polish branch of the company Ltd. However, such a rigor does not occur in the case of cooperation with someone under a contract for specific work, invoicing for services or appointing someone as the Company Director.
No production plant or office in Poland, because only then Great Britain will remain the company’s tax residence. An office or plant in Poland that would be established by an English company Ltd. would cause the necessity to keep full accounting in Poland and settle accounts with the Polish Tax Office.
There is no requirement to have a license to operate, both in Poland and Great Britain. In the case of Polish licenses, one should take into account the need to establish a branch of the company in Ltd. British licenses may be associated with additional, high costs of establishing a company in the UK.
CIT in the United Kingdom is 19%. The turnover threshold for VAT registration is as much as 85 thousand pounds. In addition, Poland and the United Kingdom have entered into force the Convention on the Prevention of Double Taxation between Poland and the UK. Currently, the tax-free amount in the UK is GBP 8,424. The director of an English company Ltd. can receive such a salary without the payment of insurance contributions and income tax.
Time of a company formation in England
The great advantage of establishing a company in Great Britain is the time of its registration. The Ltd. company can be established via the Internet, and the company is entered in the British register – Companies House within 1-2 business days.
Establishing a company in England
According to the World Bank, 13 days are enough to set up a company in England. For comparison, the average in EU member states is almost three times higher (32 days). Despite this, continuing to run your own business on the Islands can be a real challenge, mainly due to the legal regulations and administrative requirements in England for businesses.
Our many years of experience in establishing foreign companies and knowledge of the specifics of the English market will help you solve any difficulties encountered and fully optimize the tax costs of running your own business. A ready made company in England are not popular.
Choice of legal form
One of the first things investors must do when choosing to establish a business in England is to choose the right legal form. British regulations allow you to run your own business in the form of the Polish equivalent of a limited liability company (LTD), a joint-stock company (PLC), a sole proprietorship (self employer) or a civil law partnership (partnership).
Our law office guarantees not only help in choosing the right legal form of running a business, but also substantive support in obtaining the largest tax benefits.