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.