Why Registering a Limited Business in the UK Makes Sense

If you’re a sole trader or live overseas, registering a limited company in the UK presents several key benefits. 

In the UK, registering a limited company offers better tax advantages than freelancers, sole traders and partnerships. 

However, it is important that when registering a business in the UK you choose the best legal status for your company. You are required to do so for tax purposes.

Registering your business as a limited company in the UK entitles you to more tax benefits. These include:

•     Lower National Insurance Contributions

•     Lower Corporations Tax (17% from April 2020)

•     Directors can earn a tax efficient salary

 

Who Can Register A Business in the UK?

Basically, anybody can register a business in the UK. The only requirement is that you are obligated to have a UK-based address where government offices can send legal documents.

If you do not reside in the UK, the best option is to use a company formation service and register a limited company in London.

Such services give you access to qualified professionals that can register your business in the UK on your behalf. This typically includes filing the relevant forms with Companies House and sending you the official documents electronically by email. 

However, advanced services also have the knowledge and capacity to register your business with the tax agency. This ensures you are legally entitled to trade in the UK and declare that your correct tax obligations will be satisfied. 

In order to register a Limited Company in the UK you will need to:

·         Choose a name, and set up a UK address for the organization

·         Register your trade with Companies House

·         Provide proof of identity for all your directors and shareholders

·         Register your business with the UK tax office (HMRC)

Register a Limited Company in London

When you register a limited company with Companies House, directors are obligated to provide a postal address. This should ideally be your business address but can also be a private residence.

This information is made available to the public and readily available on the Companies House website.

Company directors living in the UK that do not want to advertise your private address are advised to register a limited company in London using an experienced company formation service. 

Directors that live overseas and do not have a postal address in the UK have no option other than to use a company formation service in order to register a limited company in London.

Without an address, Companies House nor HMRC will accept your application for registering a business in the UK. An official address in the UK is required so that you can be reached by government agencies. 

The benefit of registering a limited company in London is that an address in the West End projects a positive image for your business. LowCost Letterbox has several lucrative addresses in and around London including Oxford Circus and Baker Street. 

To take advantage of our registered office why not use our low-cost company formation services to register a limited company in the UK. 

The Benefits of Setting up a Limited Company In The UK

If you intend to set up a limited company in the UK, you have to register your business with Companies House and Her Majesty’s Customs & Excise (HMRC). 

Whilst the thought of complex paperwork might make you sigh, the benefits of registering a limited company in the UK outweigh the time it takes to fill out the official forms. 

Of course, if you are pressed for time and do not enjoy the prospect of registering legal documents, there is always the option to use a company formation service to register your company on your behalf. You can find low cost company formation services in London for as little as £2.99. 

Legal Advantages of setting up a limited company in the UK

Once your company name is logged with Companies House, the name is protected by law. Other businesses cannot use the same name or create an off-shoot that sounds similar. 

Business owners that choose to act as a sole trader, on the other hand, are not afforded this legal protection unless they also register their company name with Companies House. 

Because it is not necessary to register your company as a sole trader, there are thousands of business owners in the UK that have a company name anybody can use. This could be damaging for sole traders.

As a limited company, you also have the legal authority to sell shares. This helps to fund the company and increase your purchasing power. With the right stakeholders, you can also give the reputation of your company a boost from the get-go.

Tax Benefits of Registering A Limited Company in the UK

Setting up a limited company under UK law provides you with several key tax advantages. As a director or shareholder, you will pay less personal tax than if you run your business as a sole trader. 

However, you will also have to pay tax on your company profits as well as your personal income. In the UK, companies pay Corporation Tax at a rate of 19% for the tax year 2019/20. The government is reducing this to 17% from April 2020.

Depending on your personal income, as a director or shareholder, you will pay 20% on your taxable earnings over £11,850. If your earnings are over £46,351 you will pay 40% and an additional 45% on anything over £150,000. 

Directors and shareholders of a limited company in the UK are also entitled to pay themselves a small salary which gives you a fixed monthly income. By doing so, you minimise the amount of National Insurance Contributions you pay. 

Limited Liability

A limited company is classed as a separate entity from its owners. This means that business assets, tenders, contracts and debts belong to the company and not its shareholders. 

The advantage for shareholders is that if the business should fall into administration, any debts are settled by funds raised from the company and not from your personal assets.

The Benefits of Using a Company Formation Agent

Registering your business as a limited company in the UK clearly has more legal and financial benefits than acting as a sole trader. 

If you run your business from home or from outside the UK, you can still register as a limited company but you would have to use your private residential address which would then be available in the public domain. 

The alternative option is to register a business in the UK through a company formation service in London. This gives you the advantage of using their address as your official registered office and experienced professionals will handle all the paperwork for you. 

Most company formation services also scan the registration documents and send them to you as part of the setting up fee. If you want to receive paper copies you will need to pay the additional charge to cover the cost of postage.

Setting up a limited company in the UK gives you more advantages than running your business as a sole trader. Registering your company from a London address ensures that your residential address remains private and can help give your company image a boost.

Choosing the Right Mail Forwarding Service

In this article, we discuss the benefits of using a mail forwarding service and the factors one needs to consider in choosing the right service provider.

Small business owners and sole traders often don’t have the budget to purchase or rent an office location from which they can run their business.

As a matter of fact, a sharp rise in the use of cloud technology and small business registrations with residential addresses indicates the trend of home-run businesses is growing.

However, using a residential address for your business could damage the perception of your business and threaten your privacy. Business addresses are freely available to the public and other companies use this information to send out junk mail.

The alternative option is to rent a low-cost virtual office that provides mail forwarding services. You can find companies online that offer excellent value for money - some as little as £8 a month.

Before you jump straight into a contract, however, investigate whether the company is a good fit for you. The best companies offer more than just post redirection and others - although not all - have hidden costs.

Mail Forwarding Service - More Than A PO Box

If you’re a new business, a mail forwarding service can provide an affordable solution in a number of ways. There are several benefits to having a post redirection service that can make a real difference.

Companies that offer mail forwarding in the UK typically provide a much broader service than a simple PO Box from Royal Mail. When you rent a PO Box from Royal Mail, you can only receive post and parcels delivered by Royal Mail. They do not accept deliveries from other carriers.

Most mail forwarding services in the UK accept deliveries from all the major couriers. Some fulfillment centers will even sign for the delivery on your behalf.

The best mail forwarding companies send you an email confirmation informing you that you have mail. Your mail will then be sent to the address you have provided as your forwarding address.

When choosing a mail forwarding service in London, look for companies that send your mail as recorded delivery and provide you with a tracking code. Thisinsures you against the fulfillment centre claiming they sent out your mail and pinning the blame on the courier service if it doesn’t arrive.

Mail Forwarding in London

Given its premium image worldwide, a mail redirection service in London with a prestigious address will do more for your business image than most other cities in the world.

What’s more, business owners that work from home, outside of London, or even overseas can still promote their business with an address in central London.

Mail forwarding services are typically offered by companies that provide virtual office in London space and company formation services in London. Under UK law, this is a perfectly legitimate means of setting up a business with an actual address even if you are not physically based at that location.

Not only is it legal, but fulfillment centre’s also ensuring you have a legitimate postal address with an actual street name and not merely a PO Box address.

Needless, to say, a prestigious office address in central London increases the public perception of your business. You are also entitled to advertise the address on your website and business stationery.

Mail Redirection Service - Anywhere in the World

If you are not based in the UK, look for a mail redirection service that delivers post and parcels anywhere in the world. This provides you with fast and convenience and is a lot less expensive than using couriers.

Some post redirection companies scan your mail and forward it to your mobile phone or email address. You can access your mail through secure servers anywhere in the world.

For parcels and packages, look for mail redirection services that include the service in their monthly pricing package and do not have hidden charges.

The best companies will only charge you to cover the cost of post and re-packaging at the actual cost of the couriers. Others will add a service charge on. Always ask about mail redirection charges before signing up to long-term contracts.

Most fulfillment centers in the UK use Royal Mail as a first choice as they are usually more cost-effective. However, you also have the option to use one of the major couriers including DHL, UPS, TNT and FedEx. This gives you more shipping options and the opportunity to take advantage of better rates and faster delivery times.

There’s no question that mail forwarding services offer plenty of benefits to small businesses. The issue is knowing which is the right mail forwarding service to choose.