Entity formation and business set-up in UK
Having a head office in the UK and full understanding of business operations here, QX Corporate Advisors can be your local partner to help you set up a business and advise you on entity formation in the UK.
Business set-up and entity formation services in the UK
When you are planning to set up and register a business in the UK, there are several different legal structures available and many aspects to a business that have to be considered. It can be a daunting task to deal with unfamiliar legal, financial, cultural, and regulatory landscapes and these can be an inhibitor for your business expansion activities.
At QX Corporate Advisors, our consultants have got all the information you need to make an informed decision about the entity formation.
We can help you in a number of ways to ease and boost your business expansion activities in the UK:
Act as your UK registered office
Advise on a legal structure for your business
Provide professional company secretary services and statutory services
Provide advice on corporate finance, tax and VAT
UK company formation, incorporation and business registration
We understand how difficult it is to ensure the entity type you choose is right for you. There are several options available when it comes to creating a structure of your business; we can advise you on the most suitable structure for your business.
Incorporate as a UK subsidiary
This can often be the simplest and easiest option for you. UK companies are governed by the Companies Act 2006 and will be either private companies or public companies. Private companies are usually limited by shares, i.e., the liability of each member is limited by the amount of share capital they contribute. Alternatively, members of a private company can limit their liability to the amount of a guarantee or have unlimited liability. Public Limited Companies (PLCs) must be limited by shares.
Register a UK establishment
You do not have to register your company to operate in the UK but you do if you plan to have a physical presence such as an office or branch of your Indian/non-UK operation. A UK establishment is the technical term used to refer to your place of business or branch in the UK. Registration needs to take place within one month of opening a UK establishment. As part of the registration process, you would need to submit various parent company documents to the UK Companies Registrar, including your constitutional documents and latest filed annual accounts if this is the first UK establishment being registered.
Establish another corporate entity such as a Limited Liability Partnership
LLPs have certain tax advantages over unincorporated partnerships and, like limited companies, afford members the benefit of limited liability. LLPs must comply with the Limited Liability Partnership Act 2000 in the conduct of their business.
We can discuss this with you to identify which is the most beneficial entity for your company.
We also provide business support services to help to transform your idea into a sustainable business.
We can assist with international tax planning which should be undertaken before you start any business as large tax liabilities may be incurred if business profits from the contracts are incurred in a tax-inefficient way. We can help you with the entire taxation portfolio.
Foreign-based companies with a permanent place of business in the UK are liable for corporation tax so if your company has been incorporated in the UK or if the central management and control of your company takes place in the UK, you will be treated as resident in the UK and will pay corporation tax on your world-wide profits and chargeable capital gains.
For those companies which are non-UK resident, they will pay corporation tax if they carry on a ‘trade’ in the UK through a permanent establishment. Whether or not a trade is being conducted in the UK is a matter of fact and depends on the surrounding circumstances. The taxation will be on the trading income from UK operations, income from property used by UK operations and capital gains from the disposal of UK-based assets used by or for the purposes of the UK business.
Your status personally will also affect your taxation. All individuals who are resident and domiciled in the UK are liable to pay income tax on their worldwide income. Individuals resident but not domiciled may be taxed on their income arising in the UK but not that arising outside of the UK. If the individual is neither resident nor domiciled in the UK, they will only pay income tax on the income earned whilst in the UK.
You will need to comply with the wide range of UK laws and European regulations which protect the right of the employee. Under UK law, an employee is entitled to receive a specific form of an offer letter, a contract of employment setting out the terms and conditions of employment, a statutory minimum period of notice and the right not to be unfairly dismissed after the end of one year’s continuous employment. There is a raft of regulations which we can provide guidance on.