UK Limited Company

UK Company registration in The United Kingdom

In the past ten years there has been an about 300,000 new UK ltd companies registered per year. A very high percentage are later on struck off within the first two years, many through failure to follow with statutory filing requirements.

For residents outside the UK

There is another alternative for abroad companies. They may control a branch of the existing domain registration, originating from anywhere in the world, as an oversea company. So there is no separate UK company
formation but registration of a branch at Companies House Cardiff. Usually the branch then operates under the same UK controls as companies registered in England & Wales.

Why do you need a UK limited company?


The main reason to register a company is for limited liability. In the case of business bankruptcy personal assets are protected and creditors of the company can only go forward versus assets of the company. There are two significantly exceptions. Banks will generally receive personal assures from the company director in link with company borrowing. Wherever a director has tax reduced on the company payroll UK HM Revenue & Customs has a right to call for unpaid directors income tax from the directors personally following the liquidation of a company.
Additional really important reason is to obtain work or contracts. In some conditions contracts are only usable to UK limited company . If you're an Information Technology IT contractor, or in another consulting role, it will likely be a requirement that you've your own limited company. A subsidiary reason is that it could just be perceived as more esteemed for your business to be a limited company.
If your business attains profits in excess of £45,000 and you're able to moderate the amount you draw from the company you can avoid paying any personal tax and in particular avoid paying personal profit tax at the higher rates of 40% and 50%. The company will merely pay Corporation Tax at 21% until yearly profits exceed £300,000. There is exceptional tax legislation to block this being beneficial if the contact creates a deemed engagement between the ultimate customer and the company director.