The UK Private Limited company is a very flexible corporate vehicle.
It can be started with an initial capital of just GBP 1. It requires only one Director and one Company Secretary and presently its profits are taxed at a rate of 21% from next year as long as they are under 300,000 GBP, one of the lowest rates of the European Union. Both the Director and the Company Secretary can be other companies, thus widening the spectrum for confidential usage of the corporate shield. With respect to the high-tax Northern European jurisdictions, even incorporating existing businesses in the UK by transferring them physically or selling them to UK companies and leave them physically where they are may very efficient: such moves may reduce overall salary costs by up to 50% and the costs of administrative and regulatory compliance by 30%.
The main advantages of incorporating your business activities as a limited company can be summarized as follows:
- The company has a separate legal existence from management and from shareholders
- The initial capital requirements are low
- The liability of shareholders is limited
- The company's name is protected
- The company has flexible borrowing powers
- The company continues despite death, bankruptcy, resignation of management or shareholders
- The interests and obligations of management are clearly defined
- Appointment, retirement or removal of Directors is straightforward
- New shareholders and investors can be easily assimilated
- Employees can acquire shares