What is Ltd?
The current trends of deoffshorization and opposition to tax planning forces entrepreneurs to look for new ways to optimize the tax burden. The most common method is to open an account. This form of ownership is an excellent alternative to a closed joint-stock company. It has performed well on the international market. Entrepreneurs who prefer this form of ownership will be able to get a number of advantages.
Ltd is the best solution for many entrepreneurs who care about their reputation and status in the business sphere. It is also worth noting that the low cost and simple maintenance of the company is an indisputable advantage. You can easily open an account with any European bank, and they are actively used to optimize business structures, in particular, this applies to those countries where offshore companies are prohibited by law.
The main advantages of this form of ownership include the following::
- high speed and easy registration;
- affordable cost of company registration and maintenance;
- ability to get the necessary numbers and certificates;
- automatic receipt of a tax number during company registration;
- the corporate tax rate, which is only 19%.
What is an ltd – terms of opening a company
If you want to register a company, then this event will take you approximately 7-14 business days. If the founder is a legal entity, then registration will require a certificate from the register of the country where it is registered, as well as additional documents.
If the founder is an individual, you must provide a copy of your passport and a certificate of your place of residence. The customer also needs to fill out a special form in which they can indicate their wishes regarding the company’s structure.
The company name must contain the word Limited, or you can use the abbreviated version of ltd. In the UK, there are some requirements for names, for example, to use words such as Bank, National, etc. you need to get permission.
To register a company in England, you must have one director and one shareholder. And it is quite possible that it will be the same person. It should be noted that there are no residency requirements for these individuals. Meetings can be held anywhere in the world.
Ltd what is it – do I need an address?
To register, you must have a local legal address. This is where all official letters will be sent, so you should take care in advance of where your company will actually be located in England.
All official documents will include the names of the shareholder and the director. Exceptions are those cases when the owner issued a general power of attorney to another person.
The minimum authorized capital is 100 shares. Each of them has a nominal value. You must issue at least one share. You do not need to pay for the authorized capital during registration.
What does ltd taxation mean?
Entrepreneurs should be aware that there is a corporate income tax in the UK. In practice, many businessmen resort to various tax arrangements, which is why the English tax system is more similar to the territorial system.
Currently, there is a fixed rate of 19 percent. It is standard for all businesses and does not depend on the level of profit or the size of your company.
In most cases, limited companies pay taxes according to the same rules. However, there are certain benefits for some types of businesses. The special regime applies to companies producing gas and oil, insurance agencies, and banking institutions.
How does taxation work in England?
To get a VAT number, you must submit official documents stating that the company’s income will soon exceed 85 thousand pounds. Other information may also be required from the entrepreneur:
- company contacts,
- type of activity,
- business partners residing in European countries.
If you have registered a company in the VAT system, you must prepare and submit tax reports every quarter. If a firm submits zero reports several times in a row, the question arises of excluding it from this system.
When an entrepreneur works with other countries, it is quite possible that they will want to get an EORI identification number. You will need it at customs offices. Trading companies often receive EORI.
Do I need to conduct an audit?
In this case, small companies may be exempt from mandatory audits. If their turnover does not exceed 7 million pounds, the number of employees is less than 50 people, and the assets do not even reach 4 million pounds, then this event can not be carried out.
How to avoid double taxation?
The UK Tax Committee will issue you a certificate of tax residency. This document confirms that you have become a tax resident in England. This certificate is updated every year. This way, you can avoid double taxation.