Incorporation and Administration
An English company is both quick and inexpensive to incorporate and the capital requirements are very limited. However, both the incorporation and the subsequent administration require considerable knowledge of English company law as well as experience of how the different statutory requirements are handled correctly.
Anglodan has many years of experience in the formation and administration of English companies, and Anglodan is registered with the British authorities as a provider of company formation, agency, interim management, trust, and mailbox services. Anglodan is thus able to offer a comprehensive solution that includes all the major and minor tasks that must be dealt with when incorporating and operating a UK company. Even so, we also sell our services separately in case you, the client, can perform some of the administrative functions yourself.
An English company may be formed for as little as £60 plus UK VAT. However, this only covers the incorporation itself, not the subsequent administration or any other services. Anglodan therefore offers a range of management services that cover the administrative requirements. You may opt to take on one or more of these tasks yourself or decide to let Anglodan handle them for you. The choice is yours.
Share Capital and Management
When forming a company, a share capital of a certain size must be authorised for the Company. This may be as little as £0.01 but is usually £100 or £1,000. The shares are sold to the owner(s) at par value (i.e., for £100 or £1,000, respectively). The funds thus received will constitute the initial assets of the Company. Additional working capital may be provided to the Company by way of a loan from the owner(s).
The Company must have a Registered Office in the UK and must have at least one Director. It should also have a Company Secretary, although this is no longer mandatory. The Director and the Company Secretary may not be the same person if there is only one Director.
The Company Secretary is a phenomenon particular to English law and to jurisdictions based on English law. It is an official title of the physical or legal person who may certify certain legal information on behalf of the Company and sign other formal documents for the Company upon the instruction of the Director(s). A Company Secretary is thus not comparable to a typist or a personal assistant.
Anglodan can offer to update and submit the mandatory annual Confirmation Statement to Companies House and to provide your company with a Registered Office address and/or a Company Secretary. These services are included in our Basic Corporate Service Package. Anglodan can also offer to keep the Company Register (not to be confused with Companies House, which is the name of the Company Registry). The Company Register is a statutory register that must be continuously updated with details of the Company’s Directors, the Company Secretary, names of Beneficial Owners, debentures, mortgages, charges, Director’s interests, etc.
Please take a look at our FAQ page if you are unsure of any of the terms used in this paragraph.
Bookkeeping and Accountancy
The Company must file a set of Annual Accounts to Companies House every financial year and a Corporate Tax Return to the HM Revenue & Customs every 12 months. Anglodan has established a close cooperation with several UK Chartered Accountants who can produce such accounts and tax returns at a reasonable cost. On average, Anglodan charges the same fees as those offered by the Accountants to external clients.
For a company with no activity at all during a given financial year, Dormant Company Accounts may be submitted to Companies House. Dormant Company Accounts are much cheaper to produce than a standard set of annual accounts. Also, a Company may be exempt from the requirement to submit a UK tax return if it has not traded.
In some cases, the Annual Accounts must be audited. Anglodan can recommend several auditors for this purpose, if required.
Tax and VAT
As of 1st April 2017, the corporate tax rate in the UK is 19%. It is currently planned to reduce the rate to 17% by 2020. However, as a result of the Brexit referendum it has been discussed reducing the rate to as little as 10% well before 2020.
The UK VAT rate is 20%. There is usually no requirement for a company to be registered for VAT in the UK, unless it expects to reach a UK-based annual turnover of £85,000 or more. If it is not required to be registered for VAT, the Company may choose to register for VAT voluntarily. Anglodan can arrange for such a registration and for the preparation and submission of the quarterly VAT returns.
The Company may engage in any legal activity. Possible activities could, for instance, be consultancy of any description, an online shop, or a holding company. However, it should be noted that the Company may be deemed fiscally resident in any country where it is active. It is therefore wise to ensure that as much as possible of the Company’s business is conducted through the UK.
Whether you plan to incorporate an English company (see more under Corporate Service) or merely need a virtual office in the United Kingdom, Anglodan can offer the necessary services. Thus, Anglodan can offer mail forwarding, fax forwarding, call forwarding, a domain name, and webhosting, among other things. For the fax and call forwarding, your company will receive separate fax and phone numbers for your exclusive use.
Other services offered are assistance with the opening of a UK bank account, VAT registration, and accountancy services. Most services are charged at a fixed fee whereas a few – including work not specified in our Price List – are charged by the hour.
Anglodan’s office is located near Cambridge north of London. Cambridge is 35 minutes away from London Stansted Airport by train or car.
If required, Anglodan can arrange for the registration of Internet domain names and the hosting of websites. Homepage design and maintenance can also be arranged.