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Offshore and taxes in the UK

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Companies registered in the UK, are the most common organizational structures among the citizens of Eastern Europe. The main foundation of this demand was the release of businessmen from Eastern Europe on the international market. There are some features you need to know for those who want to have a registered company in the UK for the European and international transactions. These features are attractive to commercial, market and financial standpoint.

Many people regard the UK as a place where business can engage in favorable tax conditions. This fact makes Britain the place attractive for certain activities, which, as a result, held in the UK with a great advantage for foreign companies.

Certain tax regimes are now in the black list. This means that some departments look with skepticism, if not with suspicion on the costs resulting from expenditures. These costs are prohibited and are not recognized by the tax authorities in some developed countries. This reflects the view that anyone who enters into a transaction with a traditional company, must do so solely in order to receive financial benefits or because of pricing and / or that the business lacks a true commercial basis and that such business can not be regarded as an activity to which we can apply the usual financial requirements.

In contrast, the costs incurred by companies of Great Britain, have no such relationship.

Income from work through the company's UK, is not limited to tax. Commercial loans, trade credits and other incentives more readily available British companies than companies operating under the mailbox number of exotic or remote locations.

Of course, the business conducted in the UK will be taxed Britain. Thus the question arises: Is it possible to maintain financial integrity associated with a UK company, without subjecting all transactions be taxed? Can I skip the expense of Britain, which has costs that are allowed by the authorities and made in offshore areas without threatening to get into a network of UK tax? Can you profit from operations in the UK, to avoid the usual tax burden? And can do so without making false instruments? The answer to all these questions: yes, with proper preparation of documentation and follow certain rules.

All these questions you can get the appropriate advice to professionals

We offer you as soon as possible to register a company in the UK, with your presence is not required. Typically, the process of registration of a company can take up to 24 hours. After that, preparing a complete package of company documents and sent to you by courier. Thus, within 5 days, usually you get a shelf company, and can proceed to business. At your request, this period can be shortened to one hour of buying ready-made company from our list.

In addition to registration services company, we provide nominee directors and shareholders, creating a virtual office, open bank accounts, assist in the preparation and filing of financial statements.

If you compare the number of services for registration of companies in the UK, with other companies offering similar services, then make sure that the list of services we are much wider than that of other companies.

Create your own business in the UK imposes on owners, directors and secretaries of certain obligations, and we recommend that you familiarize yourself with the basic provisions and requirements for registration of UK companies. In the UK there are four types of companies, their main characteristics are presented in summary tables.

Types of companies

Limited Liability Company (Private Limited Company) - the responsibility of any shareholder is limited to the amount unpaid on the shares it owns.

Company with limited liability under the guarantee (Private Company Limited by Guarantee) - liability of any members and shareholders is limited to the amount that they agreed to pay the company's assets in liquidation.

Unlimited company (Private Unlimited Company) - the liability of shareholders is unlimited.

Public companies with limited liability company (Public Limited Company) - shares in this company may be offered for public sale, but the liability of shareholders as well as a limited liability company may not exceed the amount unpaid on shares they own.

Company Name

Should not be identical or confusingly similar to the already registered name.

Should have the ending Limited or Ltd., Or Public Limited Company or PLC (for public companies with limited liability).

Words "Insurance", "Bank", "Chamber of Commerce", "Cooperative", "Credit Union", "Group", "Holding", "Building Society", "Royal" and a number of others can only be used after permission appropriate state authority.

The founders and charter capital

The founder can serve any natural or legal person, resident in any country.

The minimum number of founders - one, and for PLC - two.

The founding capital must be expressed in pounds sterling.

For PLC announced the minimum charter capital must be 50,000 pounds, while one-third equity 12,500 pounds to be paid. PLC has the right to use other convertible currencies for capital.

Director

Minimum number of directors - one natural or legal person, resident in any country; for PLC - two.

There are major limitations:
This person has not previously had to be disqualified by the court as a director of another company. The person must not be bankrupt, have not fulfilled the obligations set forth by the court.

Duties of Directors:
Filing of annual financial and statistical report of the Registrar of Companies.
Filing all necessary forms to change the directors and secretaries, the addresses in the Companies Registry.

Secretary

Perhaps one of the directors, provided that the company has at least two directors.

Must keep all registers of the company (the register of directors and secretaries, the transfer of shares).

Must report changes in directors, secretaries, records and submit appropriate forms to the Registry. Shall keep minutes of meetings.

Legal address

Each company must have a registered legal address in the UK, which receives all correspondence. Legal address can not be a mailbox.

Financial statements

Any company, regardless of what led her activities during the reporting period or not required to file annual financial disclosure statement to the tax office and the Registrar of Companies.

Responsible for filing reports lies entirely on the beneficial owners and directors of the company.

Period - is 12 months from the date of incorporation. Date of end of fiscal period - this is the last day of the month in which the company has been registered. For example, the reporting period (the period for which submitted the report) for the company, registered on Nov. 5, 2000 is the period from November 5, 2000 to November 30, 2001.

If necessary, the period may be shortened or lengthened.

During the late filing of the financial report on the company fined.

Taxes

The tax rate depends on the company's profits:

  • - Up to 10,000 pounds - 0%
  • - From 10 001 to 50 000 - 23.75%
  • - From 50 001 to 300 000 - 19%
  • - From 300,001 to 1,500,000 - 32.75%
  • - 1 500 001 - 30%

The standard rate of VAT - 17.5%

Need to know

Every company, except for financial statements annually must submit to the Registry Statistical Report on the structure of the company (directors, secretaries, registered office and the founders).

Responsible for filing this report rests with the CEO.

If a company is registered as a VAT payer, it shall provide quarterly reports on the VAT to the tax office, regardless of what had been a taxable supply or not in the quarter.

Information about the directors, secretary, office address, as well as the latest statistical and financial reports - are not confidential and can be accessed by third parties.

The tax advantages of UK companies

This section deals with conduct of business and tax advantages to companies registered in Great Britain (UK).

There are some features you need to know for those who want to have a registered company in the UK for the European and international transactions. These features are attractive to commercial, market and financial standpoint.

Many people consider the UK as a place where business can engage in favorable tax conditions. This fact makes the UK a place attractive for certain activities, which, as a result, held in the UK to great advantage for foreign companies.

Certain tax regimes are now in the black list. This means that some departments look with skepticism, if not with suspicion on the costs resulting from expenditures. These costs are prohibited and are not recognized by the tax authorities in some developed countries. This reflects the view that anyone who enters into a transaction with a traditional company, must do so solely in order to receive financial benefits or because of pricing and / or that the business lacks a true commercial basis and that such business can not be regarded as an activity to which we can apply the usual financial requirements.

In contrast, the costs incurred by companies UK, have no such relationship.

Income from work through the company's UK, is not limited to tax. Commercial loans, trade credits and other incentives more readily available to companies UK, than companies operating under the mailbox number of exotic or remote locations.

Of course, the business conducted in the UK, will be taxed UK. Thus the question arises: Is it possible to maintain financial integrity associated with the UK company, without subjecting all transactions be taxed? Can I show spending UK company, which has costs that are allowed by the authorities and made in offshore areas without threatening to get into a network of tax UK? Can I make a profit from the operations conducted in the UK, to avoid the usual tax burden? And can do so without making false instruments? The answer to all these questions: yes, with proper preparation of documentation and follow certain rules.

Criteria for tax planning.


Documentation should be developed taking into account the following circumstances:

  • be relatively easy to work with it
  • have references to laws adopted profitable departments
  • have a sound commercial basis
  • make the most complete record of all income and expenditure and audited accounts
  • avoid areas that are blacklisted revenue departments
  • usually as a result paid little tax, much lower than would have had to pay without the use of offshore structures.


Experience shows that when all these conditions to the tax authorities is not easy to find the claims against the company.

Types of UK Companies


We provide a wide range of variants of the companies UK, who meet the above criteria. They are specially selected, that would satisfy various business needs, including export - import, production, management, consulting services, trade etc. Some of these companies take advantage of tax treaties, such as the EU Parent / Subsidiary Directive of 23 - rd July 1990. Each company has a specially-prepared documentation, which shows a profit agencies that the required functions are performed by a company in the UK, that maximizes the tax advantages of working through a company registered in the UK