The UK is one of the top five most attractive investment destinations offering favourable conditions for registering a subsidiary. The UK is not offshore and its tax regime is not mild. However, according to some surveys, every second foreign entrepreneur would register a company or buy a business in the UK. But why is the United Kingdom so popular among businesspeople?
The main advantage of buying an existing business in the UK is significant savings of both time and money because a company has already been registered. Additional benefits are listed below:
As a result, if you think about purchasing a business in the UK, you have two options: registering a company with no records but some business activity (a business name, registered address, bank account, etc.) or buying an existing business that has been trading, has employees, assets, and various liabilities. In the latter case, it is more complicated and requires a more comprehensive approach. You should conduct a full audit, including financial, accounting, staff performance and other reviews, to be confident about your decision. Based on the results of the audit, you can make a final choice about buying a business in the UK.
All cases are unique; therefore, our article gives a general overview of buying a registered company in the UK, although all of these nuances should be considered when buying a business in the UK. However, if you are interested in buying an existing company, it is better to consult our experts for a more detailed consultation.
Foreign investors often choose companies and partnerships with limited liability to buy a business in the UK. Let us review each legal form.
As it has already been mentioned, the UK is not offshore and the UK corporation tax rates are not low. In fact, if you want all the offshore benefits (not to pay tax on foreign income and keep confidential information about a company’s owners and beneficiaries), it is better to register a company on one of the Caribbean islands.
However, the UK laws provide plenty of opportunities for some businesses to optimise their tax burden. LLP and SLP (LP) do not pay corporation tax; profits are distributed among partners who report to the tax authorities of their country individually. However, it is possible to minimise tax on foreign profit, like in an offshore, because no laws are preventing foreign taxpayers from becoming partners of LLPs in the UK.
An additional benefit of a Scottish limited partnership (SLP) and limited partnership (LP) is a simplified reporting procedure. For example, if an SLP or LP does not trade in the UK, it has no obligation to file annual accounts. Moreover, an LP, SLP, or LLP do not pay stamp duty either when purchasing or selling a UK property.
There are two options for buying a business in the UK:
Acquiring an existing UK company is risk-free if the purchase is supported by qualified advisors. People who buy an existing business in the UK on their own have the following risks:
What is included in the package of documents transferred to a new owner after buying a UK company? The detailed list depends on the deal and business structure. This package usually includes:
Please try to be as patient and careful as possible when buying a company in the UK, find out more information about the business entity you are interested in from official sources, review all documents or consult qualified advisors to avoid any potential problems in the future.
If you want to buy a business in the UK, remember that the total cost of an existing company depends on many variables: year of incorporation, share capital, annual turnover of a company, etc.
Such costs as renting a registered address or accounting services should be considered fixed costs that are directly related to a business in the United Kingdom.
A unique advantage of our company is a comprehensive approach to the goals and requirements of clients, so our specialists can solve issues related to registering or buying a business in the UK, tax optimisation, accounting support, preparing financial accounts and tax reports, opening a bank account, etc.
There are three packages for prospective UK businesspeople: Standard, Standard Plus and Imperial:
The package price is £285 a year.
We also provide a correspondence address and, if required, a business telephone number and a meeting room (for an additional fee). Moreover, there is a mail forwarding service.
The package price is £1, 950 for the first year.
The price is £3,800 in the first year and £2,500 in subsequent years.
Imperial & Legal can help you buy a company in the UK quickly, affordably and without any risk. Our package services eliminate many organisational challenges from changes to the Articles of Association to facilitating staff trips to the UK.
Yes, if you are satisfied with everything except for a name of an existing company, you can change it with the help of an experienced advisor. It takes no more than 24 hours.
There are many preliminary checks and considerations that you should carry out before proceeding with a change of name. The name must not:
The package of documents depends on whether an individual or a legal entity is going to buy a business in the UK. A list of documents will be shorter for individuals than for legal entities. You can always ask our specialists which documents will be required in your case for buying a company in the UK. Moreover, Imperial & Legal specialists translate your documents, if required.
If a company is registered with the Companies House but carries out no business activities within a year, it is considered dormant.
Dormant companies are often new. They are registered when, for example, businesspeople try to secure a unique name. However, a dormant company does not always mean a new business. Sometimes a company is made dormant to restructure a formerly active business, or when an owner requires an extended period off due to illness. Pay attention to this when buying a dormant business in the UK.
You must register if your total VAT taxable turnover for the last year was over £85,000. The standard rate of VAT in the UK is 20%. A limited number of goods and services are classed as reduced or zero-rated. Most competent businesspeople register for VAT in advance because they can correctly evaluate their business prospects in the conditions of UK economic stability.
Imperial & Legal’s list of services includes VAT registration. This option, among many others, is also included in our comprehensive Imperial package.
However you choose to buy a business in the UK – directly by buying a parent company or its shares – if it is an active company, you also become an owner of assets and property: land, buildings, equipment, tools, fleet, etc. And you must pay the following taxes:
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
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