so, you are going to incorporate your Uk limited company.
This is what you need to know.
A company in Uk can be incorporated completely online, in few hours.
You can manage your company from anywhere in the world, remotely, without visiting any office.
A ltd is a limited responsability company that protect you personal assets and wealth.
To incorporate a new one, you need at least one shareholder and one director, that can be the same person.
The difference between shareholder and director is very simple:
- The shareholder has the ownership of the company, but doesn’t manage it. He receives dividends, if the company make profits.
- The director has the power to manage the company, opening bank account and perform business operations.
Both can be also an individual, non resident in UK.
If you are a freelance, marketer, e-commerce owner, software developer, you can incorporate your uk company from your home and run your business without geographical restrictions.
Moreover, you can set up a bank account for your limited company, with debit cards, completely online form your home, no matter if you are non resident in Uk.
Taxation of ltd companies in UK
Regarding tax, a ltd company pays just 19% of corporation tax on the net profits and the directors usually are not required to pay social security.
To determine your profit you need to subtract to the revenues, the business allowable expenses, that you can deduct form your income.
Are allowable expenses, for example:
- Advertising expenses if you are an affiliate marketer or dropshipper;
- The cost of goods if you carry out an e-commerce business;
- And ectera…
Regarding vat, the standard rate in Uk is 20%.
Usually you need to apply UK vat just in the case you sell services or products to UK customers.
How to pay yourself?
If you are a shareholder and your copmany make profits you can get dividends.
In Uk there is no witholding tax on dividends, so you need to pay just 19% of tax on your yearly net profits.
Consider that the tax year for the Uk lmited company is not a calendar year.
The accounting year starts from the day of the incorporation (or the day the business is started) and ends 365 days later.
The first deadline to pay taxes is 21 months from the incorporation.
Incorporate ltd in UK
You can open an online UK company in London just in less than 24 hours, through ltd24ore.com.
Here are the advantages:
- Fast online incrporation without a notary;
- online accounting and bookkeeping;
- preparation of company accounts and tax return filing included;
- free access to accounting software based on artificial intelligence;
- assistance via chat, e-mail, telephone;
- consultancy with tax experts.