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Company formation England

A Limited Company in the United Kingdom is registered according to the laws of the Limited Companies Act of 2006 which supersedes other company acts in the UK. A Limited Company is a business structure where members or shareholders have their liability limited to the contributions which they have made or invested in the company. Forming a Limited company has many advantages for owners and is easy to incorporate.


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To avoid mistakes as you set up your new company, it is essential to seek advice. We would be happy to provide you with the best advice on how to set up your company abroad. We are offering you a short, intial, free and non-binding consultation via email. It will go a long to way to help you setup your company the right way.

International Taxes
Tatjana Lintner

Key account manager at W-V Law Firm LLP

+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET
International Taxes
International Taxes
Tatjana Lintner

Key account manager bei W-V Law Firm LLP

International Taxes
+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET

Key advantages of UK limited include:

It’s quick and easy to get started

It’s now very easy to start a limited company and it can all be done online. Long gone are the days of waiting weeks for Companies House to process the paperwork: now you can start a limited company in just a few hours. What’s more, the cost of incorporating is an allowable expense against corporation tax.


The company has a separate legal identity

A limited company has its own legal identity.  So third parties contract with the ‘company’ and not the individual directors and shareholders.  This means companies survive the death of the owners and it’s possible for the directors and shareholders involved with the company to change over time.


The owners’ liability is limited

The shareholders of a company have a limited or capped liability for the debts of the business.  The extent of their liability is the amount paid for their shares plus, if they have any, the unpaid amount on any nil or partly paid shares.  In practice it is usually just the amount paid for the shares plus any unsecured loans made to the company.


Tax advantages

The main advantage of running your business as a limited company is that you are likely to pay less personal tax than a sole trader. Limited company profits are subject to UK Corporation Tax, which for the current 2017/18 tax year is set at 19%. This is a 1% cut from the 2016/17 tax year. The Government has stated it’s intention to cut UK Corporation Tax to 17% by 2020. If you are the director and shareholder of a limited company, you may choose to take a small salary and draw most of your income in the form of dividends.


The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

International Taxes
Founding a company abroad as a citizen of another country is legal?
Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

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Do you have to live in the country where you start a company?
Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

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Problematic law firms: closure is made more difficult
Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

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Changing offices is made more difficult
Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

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Privacy Policy/Office Location
Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

International Taxes
No taxes?
No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.

The biggest advantages of a Limited

  • - Low registered capital

    Equity is at least 1 GBP compared to a limited liability company with 25,000 euros in registered capital


  • - Limitation of liability

    Normally, private assets are excluded from liability


  • - Entrepreneurial restart after insolvency

    Incorporation of a Ltd. after a bankruptcy possible


  • - Non-bureaucratic administration of the Limited

    e.g. no notary required for changes to the statutes. That makes this company very entrepreneur-friendly


  • - Tax benefits

    If a limited company also operates a permanent establishment in England, the profits earned there can be used to claim low tax rates and allowances. The first £ 10,000 are tax-exempt, with all profits beyond taxed at 26.97%, but still significantly lower than its German counterpart.


  • - Acceptance and awareness worldwide

    The world's most common form of business is the English Limited


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We can give you advise on choosing right jurisdiction for your business. Contact us today.

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International Taxes

We comply with the following code:

  • - Legally secure foundations
  • - No unexpected(hidden) costs
  • - No false promises
  • - Finding the right solution by focusing on your requirements


With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.


Economic factors

The British economy posted growth of 2.6% in 2014, thus leading the overall economic trend. An important part of this increase was contributed by the service industry in the United Kingdom. The services sector accounted for 79% of gross domestic product in 2014.


Other company forms that are also possible in England

  • - Public Limited Company (in England PLC genannt und vergleichbar mit der Aktiengesellschaft)
  • - Limited Liability Partnership - LLP genannt


Tax burden comparison

Here are some examples of the tax differences between a highly taxed jurisdiction versus major tax havens.

  Belgian Limited (SPRL/BVBA) English Limited (Ltd.) Malta Limited (Ltd.)
Profit 100,000 EUR £100,000 100,000 EUR
Corporate tax 33% including. surcharge tax rate 3% Totally 36,000 EUR(36%) £16,000 (20% for profits up to £300,000 / 23% for profits over £300,000) 5,000* EUR (5%) Effectively reduced from 35%
Profit after taxes 64,000 EUR £64,000 95,000 EUR
Tax burden 24.840,- EUR £16,000 5.000 EUR


Company formation England - How it works

Starting a business in Malta is easy and the founder does not have to travel to Malta. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank and also a short CV or bank reference.


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