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Company Incorporation in the UK for non-residents

How to start a British limited company. Incorporation or formation of a company in the UK.

 

 

Company taxes in the United Kingdom

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Agency Contact with UK Company

Any British company resident in the United Kingdom is subject to corporate tax in the UK.

If the activity is outside the United Kingdom, the company may request the fiscal residence in another country, and therefore would not be subject to corporate tax in the UK. Before fiscal residency abroad is achieved, the company has to do a return in both countries, and apply for double tax relief.

There are three important rules:

  • If you do not pay taxes in other countries, then the company is subject to taxes in the UK by default
  • If there is a double taxation agreement between the UK and the country in which the business is carried out, then you have to respect the terms of the agreement
  • If there is no double taxation agreement, then the tax is deducted unilaterally.

The provision for the foreseeable future, is around a 20% rate of corporation tax for normal-sized enterprises.

The VAT status of British companies

The UK companies are not born with a VAT number, but must apply for a VAT number if they have considerable activity outside the United Kingdom. If your activities are in another jurisdiction of the European Union, it is possible that the company has to apply for a VAT number there.

LLPs

LLPs themselves are not taxable. The proportion of profits distributed to each member must be declared by the member in the country he is fiscally resident.

However, there are several ways to hold up the taxation on that amount. Do not hesitate in contacting us.

UK Tax Questions UK Administration Questions