You have come up with this big idea and crafted an excellent plan, but what is the right step to transform it into a high-potential business? You might also have a business back home and feel it is time to take it to the next level. The expert advice is to incorporate the company offshore in a jurisdiction capable of thrusting it into a global multinational. One of the top jurisdictions for offshore company formation is the UK.
For more than 100 years, the UK has been in the international arena and crafted a network of partners that are still open to doing business with the country. It is also positioned strategically to help companies reach out and exploit the rest of Europe. So, you should not hesitate to open a company in this high-potential jurisdiction.
This post is a complete guide to forming a company in the UK, highlighting economic numbers, benefits, and the main requirements.
UK Economy in Numbers
- The UK is a highly developed social market and market economy, with the service sector contributing 81% of the GDP.
- The GDP of the UK in 2021 was 2.2 trillion, making it the 5th largest after the US, China, Japan, and Germany.
- GDP growth of the UK for the last three years was 2018 (1.3%), 2019 (1.4%), 2020 (-9.8%) and 2021 (7.7%).
- The main export partners for the UK are the European Union (48.8%) and the United States (18.6%).
- The UK is a founding member of the International Monetary Fund (IMF), the Commonwealth, G20, G7, NATO, World Bank, the United Nations, and the World Trade Organization.
Benefits of Opening a Company in the UK
The main benefit of opening a company in the UK is the high levels of ease of doing business in the country. The World Bank rates the UK among the countries that have simplified the process of doing business so much for both locals and foreigners. Here, you can open a company almost in every sector, from manufacturing to information technology.
Here are other benefits to expect from registering a company in the UK.
- The UK follows a straightforward tax regime.
- An abundant supply of skilled workforce.
- Developed infrastructure.
- Greater operational flexibility.
- Easy access to the rest of the planet via multiple trade agreements signed between the country and other jurisdictions all over the globe.
- Stable economic and political system.
Company Incorporation in the UK: What are the Main Requirements?
The following are the main requirements for company formation in the UK.
- A company name and registered office. The office can be in Scotland, Wales, England, or Northern Ireland.
- Company directors. There must be at least one director for a company to be registered in the UK. All directors have to be more than 16 years old.
- Articles of association and memorandum of understanding.
- Details of your shareholders and directors, including their names, nationality, residential address, and copies of their passports.
- Details of persons with significant control (PSC) over the company.
- Company secretary. Although not compulsory, foreign investors are encouraged to work with company secretaries for compliance purposes.
- A clear description of the business activity. Check the Standard Industrial Classification code that describes and classifies different activities.
Looking at these requirements, does the process look complex? Many are the foreigners who find it very challenging, especially when it comes to preparing the documents. Again, getting an office in the UK and a good legal representative is not easy. This is why you should work with an agency of experts.
Professionals who have the experience will easily prepare all the documents required for company registration. They will also hold your hand and assist in drawing the right strategies for market entry and carrying out due diligence. Visit ICD Fiduciaries, one of the most revered firms for offshore company incorporation in the UK, for all the assistance you need.
