Offshore business incorporations have been widely accepted by business investors globally. It allows them to enjoy numerous benefits that involve ranging from tax-exemption to availing high-end confidentiality.
Among the popular offshore destinations of the world, the United Kingdom has successfully positioned itself as one of the most relevant investment destinations. Although the UK is not officially considered as a tax-haven jurisdiction, however, most of the features are similar to an offshore destination.
When it comes to offshore company incorporation in the UK, the business investors proceed with a Limited Liability Partnership (LLP). The business structure is easy to form and carries excellent flexibility.
A UK LLP is a company structure that can be formed in Great Britain. It is best labelled as a cross between a partnership and a limited company. If a limited business is established in the UK, it is adequately structured, then it will be taxed as an offshore entity.
What are the Uses of a UK Offshore Company?
Offshore companies have been registered, established, or formed outside of the country of residence. Starting a foreign company is a straightforward procedure in all of the popular offshore financial centres and tax havens and can provide a varied range of advantages. Forming an offshore company is primarily dedicated to the following grounds:
- Asset protection
- Reduced tax liability
- Protection against lawsuit
- Ease of business operation
- Flexible business laws
- Holding Company
- Commercial activities
- Trading house
- International investment company
Characteristics of A UK Company
Now, when you proceed ahead with the incorporation of a UK offshore company, it holds the following characteristics:
- Business incorporation registration can be processed electronically within a day
- The mandatory corporate secretary is necessary
- A minimum of one director and one shareholder is required
- A UK Company can act as an agent for a foreign company, also known as UK agency structure
- Bearer shares are not permitted
- A tax rate of 21% applies to profits below £300k. for-profits exceeding £300k a bracket applies
- Upon incorporation of the business, the names of the company officers will appear on public record
- Information of directors and shareholders will appear on public record
How to Open an Offshore Company in the UK
Registering an offshore company in the UK involves the following steps that need to carry out accordingly:
1.Decide the Trade Name
The first and foremost task is to decide a trading name for the business. The name of a business entity should be original and should include a suffix “Limited,” “Ld.” “Corporation,” “Corp.,” etc. The trade name becomes the face of a business, and thus, it should be decided accordingly. It is recommended to hold a few alternatives. Also, the finalized name should turn out to be unique from the competitors existing in the market.
2.Get in Touch with a Business Expert
Once you decide on the business name, the second step involves getting in touch with a certified business expert. This is recommended because they are well-versed with the legal proceedings, which might be a tough job for you if you are not well-versed with the respective process.
3.Keep the Business Records Ready
When it comes to opening of an offshore business company in the UK, submission of the following essentials turns out to be a mandate:
- Certified copy of passport
- Names and details of directors
- Details of shareholders and share capital
- Registration fee
- The Company’s name and registered address (if pre-existing)
- Articles of Association and Company Memorandum
- Completed IN01 Form
Also, the next step is to submit an order form including information as regards to what kind of shares are issued, the company secretary and the director, several shareholders, banking and virtual services required for the business, and so on.
4.Submit the Documents for Verification
Once the documents are in place, it needs to be submitted accordingly for verification purposes to the respective authorities. In case of approval, the relevant fee is to be paid, therefore. If the file gets rectified, get in touch with your business consultant to correct the errors, and submit the essentials again.
5.Open an Offshore Bank Account
The final step involves opening an offshore bank account essential to carry out the relevant business transactions. An offshore bank account allows business investors to proceed ahead with numerous benefits. For more information on it, have a look at our latest guide, How to Open a UK Offshore Bank Account.
Incorporating an offshore company in the UK turns out to be a smart and profitable investment decision. However, to complete the process in a hassle-free manner, it is recommended to proceed ahead with the guidance of certified business experts.
At Business Setup Worldwide, we understand the offshore company formation process at a deeper level and assist our esteemed business clients accordingly. Our business advisors are well-versed with the offshore business setup proceedings and can help you set up the same accordingly by providing tailored solutions consequently. Contact us today for more information- we’d be glad to assist.