UNITED KINGDOM

The United Kingdom lies on British Isles off the Western Coast of Europe. It's one of the several economic "superpowers" of the world.

The country may be referred to as an Offshore Financial Center (OFC) not in terms of local tax legislation, but rather as a suitable jurisdiction for offshore/onshore business operations.

Evidently, the UK has the mildest "tax climate" in the European Union (only Ireland can somewhat compete) and is often used as the base multinational corporations operate from in other EU countries. The UK is the cradle of Common Law. British corporate law became a model of perfection for the overwhelming majority of offshore lawmakers of the world.
 

Tax system facts:

Corporation Tax for 2001-01 starts from 10% for profits amounting up to GBP 10,000. The country is evidently the world champion in the number of concluded (110) Double Taxation Treaties, and it provides excellent opportunities for international tax planning.

Incorporation

The Memorandum of Association and the Articles of Association must be submitted to the Company Register (Companies House) which will register the company within 1 to 10 days. The register requires receiving information on the Directors and shareholders of the company. Each company must maintain its seat in England. Our company provides such service in Birmingham.

Directors and Shareholders

Any individual or legal entity residing in England or outside of England may be a founder, director or shareholder of the company. Although a legal entity may serve as a director (i.e. another company), we do not recommend incorporating a company with such structure, as the opening of the bank accounts for such company would be very difficult.

The Company Register is publicly available also on Internet. Therefore, where anonymity and confidentiality is required, we recommend appointing our professional directors or shareholders within the Nominee Services. The directors manage the company according to the instructions of the client.

Registered Capital and Taxes

Although there are no requirements as to the registered capital, we incorporate a standard company with the registered capital of 1,000 GBP. The registered capital is deemed paid in, if 2 GBP are paid.
The company is subject to a standard tax – 20 – 30%, according to the level of income.
The country is evidently the world champion in the number of concluded (110) Double Taxation Treaties, and it provides excellent opportunities for international tax planning.

There is a possibility of incorporation in England by foreigners based on authorization issued by another company (e.g. from a tax heaven). In such case, it is possible on the basis of the signature of the specific contracts (we will prepare and provide all documents), to win a tax benefit for the British company.
 Such benefit arises from the fact that only a very small part of the income of the British company (e.g. 1 to 5% or the turnover) is subject to a standard tax. The rest of proceeds of the company, the founder of the British company, are taxed in the tax heaven (low or no taxes). This company incorporated in England is called a Nominee Company.

The best offshore/onshore tools in the UK: PRIVATE LIMITED COMPANY - Outstanding features: 

• expeditious formation process
• there is no minimum share capital, standard issued share capital GBP1,000
• the company may have the sole Member who may be one of its Directors
• Names disclosure in public records: beneficial owner(s) - NO, shareholders (members) -YES, directors -YES
• Bearer shares: NOT ALLOWED
• Non-resident directors: ALLOWED
• Local Registered Office required: YES, but may be a PO Box
• Company Secretary required: YES
• Annual return filing requirements: YES, the filing fee is GBP 15.00. The annual return may be filed electronically.

Applicable legislation: The Companies Act, 1985 (as amended in 1989 and later)

UK PLCs may be used as Nominal Companies. Needless to say, care must be taken and tax professionals' advice is strongly recommended before starting some practical implementations.

Shell Companies Accounting and Audit

The company is required to keep the accounting books and records. Our company may assist you in this matter for approximately 990 USD per year. If the annual turnover of the company exceeds 350,000 GBP it is required to obtain an audit, while a certified accountant must keep the accounting books and records. The companies with an annual turnover up to 350,000 GBP may keep their accounting books and records on their own.

Anonymity and Confidentiality

The Company Register is publicly available (placed at Internet as well). If the client requests anonymity it is necessary to appoint our professional directors or shareholders who manage the company according to the instructions of the client.

UK LTD FEES STRUCTURE

I. THE BASIC SET OF SERVICES AND DOCUMENTS:  US$ 1650

The set includes the applicable Minimal Government Registration Fee, a current year Registered Agent and Registered Office Fee , Certificate of Incorporation, Memorandum & Articles of Association, Minutes with Appointment of Initial director(s), Share Certificates,Legalization by Apostille
 

II. VIRTUAL OFFICE FACILITIES IN UK

A: Dedicated Line Answering Machine & fax: US$ 595
B: Street Mail Address (It's NOT a PO Box!): US$ 495
Virtual Office Package (A + B - Discount): US$ 995

IMPORTANT NOTES

We reserve the right to change fees without notice.
The payment options are: wire transfer.

Copyright Asset Protection s.r.o. © 2007, All rights reserved.
Asset Protection s.r.o. is not a law firm and does not provide legal advices or legal services. We recommended to consult licensed professionals with regards to local tax and legal matters.