Advantages of a Limited UK Company
Incorporating a Limited UK Company offers a number of business advantages, including:
- The Limited UK Company is recognized as a separate legal entity and as a result both shareholder and director personal assets and wealth are protected.
- Corporate tax is zero up to profits of £10,000, there is then marginal relief for companies with a turnover up to £50,000, then the small company rate is 19% up to profits of £300,000.
- Once the company is formed there is no requirement for immediate trading.
- Only one shareholder is needed and there is no restriction on the number of shares a shareholder owns.
- Only one director is required.
- There are no restrictions on foreign nationals being shareholders or directors, however the company must have a registered address in the UK.
- There is no need to use a lawyer to set up company. All paperwork can be handled by Crossfort Partners.
- The cost of incorporation and maintenance and service fees are relatively low while the time required to set up the company is minimal.
- Share capital needed is very low, usually around the £1,000 mark and there are no limitations on capital movements once incorporated.
- There is no capital duty either on formation or on capital increases.
- Earnings can be withdrawn through dividends
- No withholding tax is paid on the dividends of the limited UK Company
- There are specific requirements regarding meetings and the running of the company including an Annual General Meeting.
- Various returns must be filed including accounts and an annual return among others.
- Incorporating in the UK is a much more prestigious solution compared to other offshore jurisdictions
- UK limited Companies offer a gateway to doing business in Europe.