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Oxford can assist you with the formation and administration of UK limited liability companies and provide you with all necessary services for the maintenance and administration of the entity. Nominee services are also provided.
An expedite service is available for same day incorporations, provided that the requested name has been approved by the Companies House.
Main Advantages Associated With UK Private Limited Company
Companies which are resident in the United Kingdom are subject to corporation tax on their worldwide profits. Tax is imposed on the total amount of income earned from all sources in the company’s accounting period.
Non resident companies are subject to UK corporate tax only if they trade in the UK through a permanent establishment. A permanent establishment arises either from a fixed place of business in the UK through which the non-resident company carries on its business, or from an agent exercising certain authorities to perform the company’s business in the UK on behalf of the non-resident company.
Corporation Tax (which includes Capital Gains Tax) is required to be paid by Private Limited Companies based upon their accounts which are submitted to the tax authorities and Companies House at the end of the financial year. A company may claim the small profits rate of corporation tax, which is 20% if its taxable profits for an accounting period are less than GBP 300,000. The effective marginal rate for companies with non ring-fence profits between GBP3000.000 and GBP 1.5 million is 23.5% for the financial year beginning 1 April 2013. The main rate of corporation tax for large companies (with profits over GBP 1.5 million) the rate is 23%. The tax rate is 30% for companies with ring-fence profits (that is, profits from oil extraction and oil rights in the United Kingdom and the UK continental shelf).
A company is resident in the UK if it is incorporated in the UK or if the management and control of the company is duly exercised there. However, companies regarded as resident under domestic law, but as non-resident under the tie breaker clause of a double tax agreement, are regarded as non-resident for corporate tax purposes.
Capital Gains on chargeable assets are taxed at the normal corporation rate.
Subject to certain conditions any capital gain on disposals made by trading companies or groups with substantial shareholdings (more than 10%) in other trading companies or groups are exempt from UK tax.
Dividends paid by UK resident companies are not subject to withholding tax. A dividend or other income distribution received on or after 1 July 2009 is generally exempt from UK corporation tax if all of the following conditions are satisfied:
All interest payments by UK resident companies may be made without the imposition of withholding tax if the paying company reasonably believes that the interest is subject to UK corporation tax in the hands of the recipient.
The standard rate of VAT is 20%. VAT on any supply of goods or services, other than an exempt supply, made in the UK by a taxable person in the course of business (taxable if annual supplies exceed GBP 70.000) If the company requires VAT registration then a UK bank account is required. Once the bank account is opened then the VAT application can be processed.
We can assist with the registration of VAT with HM Customs and Excise, and prepare the quarterly returns for submissions to the relevant authorities.
Main Features of UK Private Company Limited By Shares
Companies incorporated in the United Kingdom (UK) can have either a limited or unlimited liability. The most commonly used company structure is the private company limited by shares. The UK Limited Liability Companies have a separate legal personality from its members. As such, shareholders personal assets remain separate and the only exposure the shareholder may have is on the money invested in the company and the unpaid share participation.
The current Company Law is designed around the needs of both big public companies and small companies to seek the advantages of corporate status and limited liability. Also, the potential tax advantages and simplicity in operating a private limited company make it the most common form of legal entities in the UK.
The internal structure of a UK Limited Company and its statutory requirements is straight forward and constitutes an adequate corporate and tax solution for many businesses.