UK has a highly-developed and sophisticated business infrastructure, with a large number of companies already established in the country. The UK is one of the most advanced countries in terms of digital services, making it an ideal place for entrepreneurs looking to develop their online businesses. For many companies looking to expand into the United Kingdom, company formation in the UK is an attractive option. With its long and successful history of welcoming international businesses from all over the world, the UK offers a number of advantages for those who are looking for a competitive edge in the global market. This article will discuss some of the key benefits that come with company formation in the UK when done from overseas.
First and foremost, setting up a business in the UK can provide access to major markets such as London, Manchester and Birmingham – which are among Europe’s most important financial centres. This can be especially beneficial if you want to expand your operations beyond your home country and tap into new markets. Additionally, forming a limited liability company in Britain can help protect you from personal liability should something go wrong within your business entity.
Low Setup Cost
Starting a limited company can be a daunting process for entrepreneurs, but with the right guidance and knowledge, it doesn’t have to be expensive or complicated. Companies House in the UK has made setting up an Ltd Company incredibly affordable, at just £12! The low cost of this service makes it possible for anyone to set up their own business without breaking the bank.
The registration process is relatively straightforward, even for those who may not necessarily have any experience in dealing with Companies House. All that is required is to complete an online application form and provide some basic information about your business such as its name and address. Bonus: You don’t need a UK resident permit to open your company either – all you require is an email address so that Companies House can correspond with you electronically throughout the process.
Favourable Tax Environment
The UK has an incredibly favourable tax environment for Limited Companies, with one of the lowest corporation taxes in Europe, as well as a high VAT registration threshold. This low corporation tax rate, at 19%, puts the UK in line with countries such as Ireland and makes it one of the most competitive countries to do business in. With this favourable rate, companies can benefit from a greater return on their investments and larger profits than if they were located elsewhere.
The high VAT registration threshold is also beneficial for businesses looking to operate within the UK, reducing their admin costs and allowing them to remain compliant with their obligations to HMRC. The threshold stands at £85k per annum which means that many small businesses are able to avoid registering altogether. This helps keep operational costs down which can be invaluable for new businesses or those just starting out on their journey.
Access to Markets & Opportunities
The United Kingdom (UK) is a great place for businesses of all sizes to access and benefit from the ever-competitive market. With its strong trade relationships and advantageous policies, UK markets offer an ideal platform for business growth. For example, Amazon, Etsy, and eBay are popular online stores that have been operating in the UK since the early 2000s. These websites provide businesses with a unique opportunity to reach customers across Europe without having to pay large shipping costs or customs duties associated with international borders. Furthermore, they allow companies to take advantage of more competitive pricing than those offered by local retailers due to their larger buying power.
Ability to Apply for Immigration
Using the UK Self Sponsorship pathway you can use your Limited Company to apply for permanent residency and British citizenship for both yourself and your family. The UK Self Sponsorship Visa is tailored for individuals who are looking to become self-employed in the UK, often through setting up their own company as a director. This type of visa is perfect for those looking to develop their business ideas, taking advantage of the UK’s innovation-driven economy and its low corporate tax rate. It also provides an opportunity for those without a job offer from an employer in the UK to make their dreams of living in Britain come true.
The benefits of company formation in the UK from Overseas is a comprehensive guide to the advantages and possibilities of forming a business in the United Kingdom from abroad. This article has discussed the numerous benefits that come with registering your company, such as lower taxes, access to a larger consumer base, and more. As we approach the conclusion of this piece, it is important to understand how best to maximize these benefits when forming your company.
Contact us for a 15 Minutes Free Consultation Call to discuss how we can help you start your business in the UK! It is paramount that before you set up your venture, you take the time to get familiar with all applicable laws and regulations within the UK.
We have been helping over 300 clients like yourself run a successful business in the UK from overseas. Choosing the right partner will help ensure smooth sailing when running your business as well as avoid any costly legal fees down the line.
