Why form a company in the UK?

Many proprietors choosing the UK jurisdiction because of the following reasons:


Manage trading activities

One of the reasons for starting a business in the UK may be the location of business clients or suppliers in the United Kingdom or the European Union.

All business operations of your company will be protected UK law, which acts the best for the residents of the country. As a resident of the UK business can use taxation and legal benefits in interaction with their contractors, use convenient UK-based payment methods, such as merchants and banks.


Avoid CFC taxation

Currently, a lot of countries implementing the legal basis for most of the steps of the BEPS Action Plan. One of the steps of the Plan is the disclosure by the individual's resident of their participation in foreign companies they control (CFC) and the rules of taxation of such companies. Mainly, if the tax rate of a foreign country is at the same level or higher as in your home country, you as a business owner will receive an exemption on the taxation of CFC operations. It is well-known fact, that UK has one of the highest tax burdens in EU, so you don't have the risk to meet CFC on the one hand and there are still a lot of options of legal tax optimization of your tax burden up to 3-6%.


Good reputation

UK double tax treaty network is extensive and expanding over 130 countries which will help you to avoid any double taxation of your business and use other benefits of the conventions, like lower tax rates on the operations between the countries. All banks of the world accepting UK based companies.


Fast and cheap legal entity

The incorporation will take only 2-3 business days, you do not need any physical presence for company formation, the director, secretary and shareholders do not have to be based in the UK. Virtually anyone can own and manage a UK limited company but there must always be one real person who is at least 16 years of age appointed. Incorporation and maintenance costs are very low.


Tax benefits

Limited liability partnership in the UK does not tax on the basis of the entity, it is only taxed on the level of the partners, which means you tax only once when you receive personal income in the jurisdiction of your tax residence, there are also a lot of tax allowable expenses and reliefs for limited liability companies and corporations.


Law field

UK law one of the oldest structures in the EU. Most business issues have already been reflected in the practice of British courts and lawyers, and there is a lot of useful information in the public domain. You may find any legal case or memo in the open-source from corporate law to tax law or any other specific question.