UK company formation

UK Company Formation

 

Our company provides full accounting services and company formations for UK companies(ltd)

We carry out the company formations through the official agent site of Companies House.

 

Contact our colleague, Maria Zsarnai for a free company formation consultation. Contact her: here.

If you incorporate your company with us or we do bookkeeping for your company, on our internal website you can track your deadlines, can check your company’s main data and see your company’s letters, that we upload. It is currently under development, it will be available again soon.

We will notify you of these deadlines through e-mail regardless, but this way you can check this information anytime.

We strive to offer one of the most competitive prices on the market of company formation and accounting to make it available to more businesses.


What are the prerequisites for setting up an Ltd?

A UK company can be formed by any natural person regardless of nationality and with a minimum share capital of £1.

If you wish to incorporate and manage your business from Hungary, there is one thing that you should consider before forming your company. Will your company and its activites be linked Hungarian permanent establishment? By permanent establishment we do not just mean warehouse or site. According to Act of CXLIV of 2011 (downloadable under the Documents in the menu) you are required to report the following, among others, as permanent establishments:

  • a place of management
  • a branch
  • an office
  • a factory
  • a workshop, etc.

ARTICLE 5 PERMANENT ESTABLISHMENT (1) For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an erterprise is wholly or partly carried on. (2) The term “permanent establishment” includes especially: a) a place of management: b) a branch: c) an office: d) a factory: e) a workshop: és f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 

If it is declared as a permanent establishment in Hungary, the business must be taxed in that country.

If the place of management or the office is not linked to Hungary, meaning you can operate your business via the internet or phone, or you have a contract with a Hungarian entrepreneur/individual to handle Hungarian matters, then the place of management will be the registered UK address, in that case, the UK company form was made for you.

 

From which fields do our clients come most often?

  • IT providers
  • internet traders
  • Companies trading in the EU
  • advisors
  • interpreters
  • businesses selling their services and softwares online

 What are the main advantages of a UK company?

  • Very favourable taxation in a prestigious enviroment
  • Safe enviroment for business activities

 

The keypoints of UK taxation in the current 2020/2021 tax year

  • 19% corporation tax rate
  • No hidden corporation tax 
  • Below annual £12.570 the Personal Income Tax is nil, above that it is 20 % ( until about £50.000 )
  • Flexible cost accounting rules
  • Low, 20 % VAT rate
  • A VAT number can be requested
  • Vat registration is mandatory above £85.000 annual income

 

Most common types of companies:

 

Private Limited Company (Ltd.)

  • Shares can be listed only off the stock exchange market
  • Minimum share capital of £1

Public Limited Company (Plc.)

  • Shares can be listed on or off the stock exchange market
  • Minimum share capital of £50.000

Limited Liability Partnership (LLP)

  • A partnership of self-taxing persons
  • The members declare and pay their taxes on their own Tax Return based on their ownerships of shares.

 

Our company deals with the incorporation and full accounting of LTDs and LLPs.

 


 

Informations regarding the incorporation of Private Limited Companies (Ltd): 

Minimum amount of share capital is only £1. That amount can be paid into a bank account or stored in petty cash. The owners are liable for their personal assets to this extent. It can be a one man company, where the director and the owner is the same person.

 

Owners

  • The company can be incorporated with one person too 
  • The owner can be a foreigner without limitation
  • The owner can be a natural or a legal person

Officers

  • At least one executive director must be appointed
  • The director has to be a natural person
  • Appointing a secretary is not mandatory (It is advised in case of big corporations. Once appointed the secretary is responsible for, among other things, maintaining the company’s registered office, conducting the company’s meetings, preparing the Annual Returns, etc.

THE FOLLOWING ARE NOT PERMANENT ESTABLISHMENTS: PERMANENT ESTABLISHMENT (3) A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months. (4) Notwithstanding the preceding provisions of this Article the term “permanent establishment” shall be deemed not to include:
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

Choose the company formation package that suits you the most: Free, Home Office, Starter Plus or Dormant.

If you need help choosing, please contact us. 

 

 

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