Starting a business in Britain begins with getting the basic features of the new entity right. Your first decision is which legal form suits you best. The Ltd., LP and LLP are the most popular options, although other forms are available too. Next, you choose the jurisdiction of registration – England or Scotland – and the city in which the official registered office will be located. The cornerstones of setting up a British company are a distinctive name, the individuals who will take on management and shareholder roles, and a precise breakdown of each person’s percentage ownership. Deciding on the initial share capital is equally important. The next stage is to assess the tax burden, which works very differently for a Ltd. and an LLP: • The entity operates on the basis of fiscal transparency, meaning the company pays no tax itself and its profits pass directly into the tax returns of the individual members (the so-called pass-through regime). • Profits are subject to taxation first at the level of the company itself, followed by a second layer of tax once the net profit is distributed to shareholders as dividends.
What Are the Main Advantages of Trading Through a British Company?
– An excellent reputation, a stable environment and a high level of credibility in global markets and with banks and tax authorities in your home country (unlike opaque offshore havens). – Extremely fast incorporation at Companies House, often within 24 hours. – A straightforward process for opening company bank accounts. – Full assistance with VAT registration, both in your home country and in the United Kingdom itself. – Share capital can be paid up from a nominal £/€1. – Shareholders and directors are not liable for the company’s debts and obligations with their personal assets; their rights and duties are protected by the well-developed British legal system. – Citizens of any country can become a director or shareholder, with no need for permanent or temporary residence in the UK.
What Does the UK Company Formation Package Include?
Government and administrative fees – full payment of all mandatory fees due to UK authorities that are required for the company’s formation. Tax registration and UTR – we obtain the company’s UK tax reference (Unique Taxpayer Reference) for you and provide expert support throughout the registration process. Formal company documentation, comprising in particular: the Certificate of Incorporation (confirming the company’s legal formation); resolutions of the founders and shareholders; the directors’ initial resolutions; the register of ultimate beneficial owners; a list of the company’s officers; paper share certificates confirming ownership; the company’s constitutional documents (Articles of Association, By-Laws or Operating Agreement). Corporate Kit – a high-quality designer binder for storing all the company’s original documents in an orderly and secure manner. Registered office and address – an official registered address in England for one year, including mail handling. The service normally covers scanning and forwarding correspondence from UK courts, the tax authority (HMRC) and Companies House. On request, it can be extended to full handling of your everyday business post. International certification with an Apostille – arranging higher-level certification of your documents (an apostille), which is essential for opening accounts with foreign banks, changing the ownership structure or making other corporate changes.
UK Tax Rates
The UK tax system operates on sliding, tiered principles. Both the percentage rates and the thresholds for each tax band, which determine the final liability, are revised regularly over the years. The timetable for filing returns and meeting statutory deadlines varies from company to company, depending on its exact date of incorporation. To avoid the risk of penalties for missing key deadlines, it is well worth entrusting this work to experienced professionals.
Comparison: Ltd vs LLP
Opting for a British Ltd generally involves a more complex and potentially heavier tax burden than an LLP structure. This is because the Limited model is based on double taxation. First, the company’s net profits for the financial year are taxed; a second round of tax then arises when those funds are passed to shareholders as dividends.
| Daň z príjmu firmy zo zisku | Sadzba |
| 0 - 50,000 | 19% |
| 50,001 - 250,000 | 26.5% |
| >250,000 | 25% |
| Fraction | 3/200 |
| DPH v Anglicku | Sadzba DPH |
| Detské oblečenie a jedlo | 0% |
| Kúrenie pre domácnosti | 5% |
| Tovary a služby | 20% |
| Obrat na povinnú registráciu DPH | 85.000£ |
| Daň z príjmu fyzické osoby | Sadzba dane |
| 0 – 12,570£ | 0% |
| 12,571 – 50,270£ | 20% |
| 50,271 – 125,140£ | 40% |
| >125,140£ | 45% |
Further Legal Obligations in Subsequent Years
Every company registered in the UK must regularly pay a fee to remain on the British register (Companies House). The statutory deadline for filing the tax return is exactly 12 months after the end of the company’s financial year. If the accounting year ends on 31 December, the filing deadline expires at the end of December of the following year. Fees for the company’s registered office and associated administrative services are usually paid annually from the company’s official date of incorporation.
| Cena | Správa firmy Anglicko |
| 250€* | účtovné výkazy a poplatky (Accounts) |
| 250€* | výkaz o štatutároch a sídle + poplatky (Confirmation Statement) |
| 250€* | sídlo ročne |
| od 450€ | daňové priznanie |
| od 1.450€ | zrušenie firmy |
| * závislé na kurze mien €/$ | * závislé na zmenách štátnych poplatkov |
Taxes in England 2014-2015
The tax system in England is built on a model of progressively increasing taxation. This means the government regularly updates both the tax rates and the income band thresholds that determine the rate at [...]
Taxes in England 2015-2016
The tax system in England works on the principle of progressive taxation. In practice, this means that both the tax rates themselves and the band thresholds – which determine how much of your income [...]
Taxes in England 2016-2017
The tax system in England operates on the principle of progressive taxation. In practice, this means that over time both the individual tax rates and the band thresholds – which determine how much of [...]
Taxes in England 2017-2018
Each company has its own fixed deadlines for meeting its tax and administrative obligations, such as the annual accounts (Accounts), the Confirmation Statement, the tax return and the renewal of the registered office. As [...]
Taxes in England 2019-2020
Each company has its own set deadlines for meeting its administrative and tax obligations (Accounts, Confirmation Statement, tax return). Because these deadlines can vary considerably between companies, and missing them often leads to complications [...]
Taxes in England 2020-2021
Each company has its own individual deadlines for meeting its administrative and tax obligations (Accounts, Confirmation Statement, tax return). As these dates can differ considerably from one firm to another, and missing them often [...]
Taxes in England 2021-2022
Tax rates applicable for the tax period: Deadlines and tax rates The tax system in England is built on progressive taxation. This means that [...]
Taxes in England 2025-2026
Tax rates in England are progressive. Over the years, it is not only the rates that change but also the thresholds of the bands to which they apply. Deadlines for meeting each obligation differ [...]
Taxes in England 2024-2025
Deadlines for meeting each obligation differ from company to company, so every business is assigned its own dates. To make sure none are missed, the most sensible course is to have professionals keep track [...]
Taxes in England 2023-2024
Deadlines vary from company to company, so each business has its own individually set deadlines for meeting its various obligations. It is best to entrust the monitoring of these deadlines to professionals. Tax rates [...]
Taxes in England 2022-2023
Each company has its own deadlines for meeting its obligations (Accounts, Confirmation Statement, tax return). For personal income tax, the filing deadline is the same date for everyone. Tax rates applicable for the [...]
Taxes in England 2018-2019
Each company has its own individually set deadlines for filing administrative and tax documents (Accounts, Confirmation Statement, tax return). These deadlines can vary considerably from one company to another. Tax rates applicable for [...]
How to Open a Bank Account for an English Company
To open an account in the UK, you need a Certificate of Good Standing showing the company's basic details – its name, registered office, the director's name and address, the names of the shareholders [...]
How to Open a Bank Account in England
Opening a bank account in the UK is not as straightforward as you might expect. Because of English anti-money laundering legislation, foreign nationals are at a disadvantage when opening bank accounts: they must provide [...]
Tax Bands in England
Companies in the UK pay tax on their income at a rate that changes over time. Where the accounting period does not coincide with the tax period, profits are apportioned between the tax periods. [...]
How to Claim Tax Losses in England
First, it is necessary to establish which category of income the losses arise from. If a company has income in several categories, it must keep a separate account for each tax loss. All losses may, [...]
What Counts as a Tax-Deductible Expense in England?
In the UK, allowable expenses are those incurred for the purposes of the business. Other transactions in which the price is not set on commercial terms should therefore be treated as disallowable expenses. Tax-deductible expenses [...]
Tax Period for a Limited Company in England
The tax period is the financial year running from 1 April to 31 March. As regards the accounting period, the law merely provides that it ends with the preparation of the annual accounts. Make [...]
Taxes in Great Britain
The Legal Framework for Taxation in the UK Common law plays a significant role in the UK. The legislation governing the taxation of companies' income includes: the corporate income tax acts ("Income and Corporation [...]
Corporate Taxation in England
Companies resident in the UK pay corporation tax on their worldwide income, assessed annually for the period from 1 April to 31 March. A special tax regime also exists, but it applies only to [...]
How Is a Limited Company Taxed in England?
The official name of Great Britain is the United Kingdom of Great Britain and Northern Ireland, a constitutional monarchy made up of four countries: England, Scotland, Wales and Northern Ireland. The UK also has [...]
Bookkeeping in England
Companies in England must keep accounts and file financial statements. A company with a turnover of up to GBP 350,000 may keep its own accounts. Financial statements must be filed with the relevant authorities within [...]