| |
|
|
UK Limited Company
Formation
|
England has a double-taxation
agreement = DTA with most countries. EU freedom of establishment is
applicable. From a European point of view, NO commercially equipped
business operation is required for the approval of a tax operating
business in England, and neither is the proof of any active business
in England. The English income tax amounts to 0-19% for medium-sized
businesses up to a profit of £300,000, and
then progressively increases up to 30%. By bringing forward an
Isle of
Man Limited, the income tax load may
be reduced, i.e. the profits are distributed in the Isle of Man
Limited, which results in a lump-sum tax of £450 per year.
The following services are included in our complete
packages:
Forming of the company, entry in the commercial
register of the country, apostille, notarially certified translations
of certificates into English, unless official language
-
Nominee director: An attorney in the formation country will act
as nominee director of the company (to the outside) and transfers
all rights and obligations internally to the actual beneficiary (notarial
deed of trust). The director does not have any account authority.
-
Nominee shareholder: a tax office in the formation country will
act as nominee shareholder (to the outside) of the company and
transfers all rights and obligations internally to the actual
beneficiary (notarial deed of trust).
-
Domicile of the company in the formation country: deliverable
postal address, availability by telephone, telephone and fax, mail
forwarding service
-
Account opening: bank account for the company at a renowned
major bank in the formation country, internet banking, VisaCard and
cheques. Only the founder of the company is authorized to have
access to the account.
-
General power of attorney to the founder: Only the founder
receives a notarially certified general power of attorney for the
company.
-
Recommendation of a renowned tax office in the formation
country, for book-keeping and accounting
-
Internet-homepage of the company hosted on a server in the
formation country: 5 pages for presentation of services/products,
feedback form, imprint, e-mail address. May be extended at any time.
The fees for the complete packages include the
services mentioned above; any special services (nominee director and
shareholder, domicile) are paid for one year.
|
|
1. Sole formation
(Entry in the commercial register in the UK, registration
documents, apostille, incl. registered office paid for one year,
English certification of the formation deed
and translation of the complete formation documents,
provision of the Company Secretary): 998.00
euros plus statutory VAT
Target group:
Taxable business entity outside of the UK - that is, e.g. in
Germany - client provides director and shareholder, or taxable
business entity in the UK, but client moves his centre of life to
the UK or takes on an English citizen as director. Shareholder is
also provided by the client. In both cases the client provides a
real and regular domicile on his own responsibility.
1.1
Nominee shareholder/partner
(a
legal entity (Limited) acts as shareholder/partner in trust:
900.00 euros net/year. One-off administrative flat charge
plus 500.00 euros. In the first year fees will thus amount to
1,400.00 euros plus VAT.
2. Complete Package (Full Service) incl. nominee services and
domicile of the company in the UK
Our complete (full-service) packages
include the establishment of a taxable entity in the UK for our
clients, therefore/complementary as a rule world taxation in the
UK (provided that the Limited company does not give rise to a
taxable entity based on a double-taxation agreement in other
countries), therefore the trust solution:
Services of Complete Package A:
·
Formation of the company including all documents, apostille,
translations certified by a notary
·
Nominee complete package (nominee director and nominee
shareholder, if necessary/requested. Our English tax office may
act as majority or minority shareholder, an English lawyer will
act as director)
·
Notarial deed of trust, German translation: All rights and
obligations are transferred to the actual beneficiary of the
company
·
General power of attorney to the founder, German translation,
certified by a notary
·
Nominee secretary, English tax office
·
Domicile of the company in London (a regular registered office
that is to say no bogus company): deliverable postal address (no
C.O. address), real telephone (no answering machine, incoming
calls are personally answered with “headquarters”), fax, mail
forwarding service
·
Opening of a bank account for the Limited Company in the UK, incl.
Visa Debit Card, cheques and internet banking, Pound Sterling and
Euro accounts, the opening of the account is guaranteed,
irrespective of the beneficiary’s/account trustee’s credit
standing (HSBC-Bank London or Barclays Bank). The
beneficiary/client will be the sole person authorised to have
access to the account, Visa Card, pass words for online banking
·
LCT service package: contract drafts (fee contract concluded with
the representative or commercial agent according to § 84 HGB
(German Commercial Code), contract of UK Ltd. and German customers
of the Limited company as a draft, specimen for invoicing and
letter/headed notepaper according to English law), internet
presentation of the company hosted on a UK server with 10 pages,
feedback form and UK e-mail address
·
Recommendation to an international tax consulting firm
in London
·
Partners’ meeting
Fee:
5,900.00 euros plus VAT
for the formation of the company and all special services in the
first business year.
Renewal after the first business year (nominee services, domicile,
fax,
telephone etc.): 2,900.00 euros annually plus 17.5% VAT.
If the client does without a nominee shareholder the annual fee
will be reduced to 2,580.00 euros/year; hence, the formation fees
including special services for the first business year will total
5,500.00 euros.
Calculation of the above fees is based on the assumption that fees
are paid in advance as a single payment. In the event of part
payments (50% in advance, 50% after provision of the formation
documents via fax) a surcharge of 5% is due. When taking over a
Reserved Limited company fees are always due as a single payment
in advance. |
|
Corporation Tax Rates 2006/7
|
£ per year (unless stated) |
2005-06 |
2006-07 |
|
Starting rate: 0% |
£0 – £10,000 |
N/A* |
|
Marginal relief |
£10,001 – £50,000 |
N/A* |
|
Small companies’ rate: 19% |
£50,001–£300,000 |
£0-£300,000 |
|
Marginal relief |
£300,001–£1,500,000 |
£300,001 - £1,500,000 |
|
Main rate: 30% |
£1,500,001 or more |
£1,500,001 or more |
|
Non-corporate distribution rate |
19% |
N/A* |
*The 2005 Pre-Budget Report announced that the
starting rate and non-corporate distribution rate
would be replaced with a single banding for small
companies set at the existing small companies’ rate.
Income Tax Rates
2006/7 - Personal Allowance, CGT, Inheritance Tax,
Taxable Bands
|
per year (unless stated) |
2005-06 |
Change |
2006-07 |
|
Income tax personal and age-related
allowances |
|
Personal allowance (age under 65) |
£4,895 |
+£140 |
£5,035 |
|
Personal allowance (age 65-74) |
£7,090 |
+£190 |
£7,280 |
|
Personal allowance (age 75 and over) |
£7,220 |
+£200 |
£7,420 |
|
Married couple's allowance* (aged less than 75
and born before 6th April 1935) |
£5,905 |
+£160 |
£6,065 |
|
Married couple's allowance* (age 75 and over) |
£5,975 |
+£160 |
£6,135 |
|
Married couple's allowance* - minimum amount |
£2,280 |
+£70 |
£2,350 |
|
Income limit for age-related allowances |
£19,500 |
+£600 |
£20,100 |
|
Blind person’s allowance |
£1,610 |
+£50 |
£1,660 |
|
Capital gains tax annual exempt amount |
|
Individuals etc. |
£8,500 |
+£300 |
£8,800 |
|
Most trustees |
£4,250 |
+£150 |
£4,400 |
|
Inheritance tax threshold |
£275,000 |
+£10,000 |
£285,000 |
|
Pension schemes allowances |
|
Annual Allowance |
N/A |
N/A |
£215,000 |
|
Lifetime Allowance |
N/A |
N/A |
£1,500,000 |
*Married couple's allowance is given at the rate of
10 per cent.
Income tax:
taxable bands
|
£ per year |
2005-06 |
2006-07 |
|
Starting rate: 10%* |
£0-£2,090 |
£0-£2,150 |
|
Basic rate: 22%* |
£2,091-£32,400 |
£2,151-£33,300 |
|
Higher rate: 40%* |
Over £32,400 |
Over £33,300 |
* The rate of tax applicable to savings income in
Section 1A ICTA 1988 remains at 20 per cent for
income between the starting and basic rate limits.
The rates applicable to dividends are 10 per cent
for income up to the basic rate limit and 32.5 per
cent above that.
|
|
|
|
