FAQ

By establishing a company in the UK, you can avoid the administrative burden of selling goods outside the EU.

It takes 1-2 days.

No. It is only when the turnover exceeds £ 90,000 annually in England if you have English customers. If you only have turnover outside the UK, it is not necessary.

Absolutely, but VAT registration in the UK is a long process. We can help with this, but please be prepared to wait. There is a fee for this. We can also help with storage solutions.

Yes, we can help with this.

Yes, we already have arrangements with other clients for small items and we can also help you.

We can help you with this.

It is not a problem to own a UK company as an EU citizen.

Yes, you can be a director of a UK company, even if you don’t live in England.

The solution is to use a payment platform, such as Paypal, Stripe, etc., where customers can pay with their payment card. The payment platform is linked to your business account which can be an online EMI.

You will pay company corporation tax in England but if you take money out of the company or pay yourself a salary, you will pay tax on this in your home country.

Yes.

Yes. You can borrow money from your company by way of a director loan. At the end of the financial year, the balance must be repaid via your dividend.

Yes, but there are restrictions.

There are implications on import and export.

You will need to pay Corporation Tax – currently at 19% but due to rise to 25% in April 2023.

Director’s name and owner’s name are visible at Companies House.

Yes, Companies House requires this information but it is not made public.

When the company is registered, you will receive a copy of the Certificate of Incorporation and Memorandum & Articles of Association. If you need the full set of documents, these can be sent to you by post or email. Most clients prefer that we keep the documents.

Yes. We will introduce you to one of our English accountants.

Contact us via telephone or email, and we will send you a proposal.

We recommend you give us 2-3 name suggestions so that we can check if any of them are available to use.

1. No share capital requirements

Limited (Ltd) is a standard format. There is no requirement to deposit capital up front. It is simply up to you as an entrepreneur to provide capital in the company.

2. No requirement for VAT registration

Actually, you only have to pay VAT when your turnover is more than £ 85,000 (approximately €98,000). If you sell outside the UK to an international market, you do not have to pay VAT.

3. Favourable ownership

You do not have to be director of the company. You only need to be registered as the real owner of the English company. It is also a legal requirement in the UK.

4. Company tax

Currently 19%, but due to rise to 25% in April 2023.

We provide this when we establish the company for you.

Yes you can trade with a name other than your registered name. This is known as a ‘trading name’.

A company can remain dormant indefinitely as long as it meets certain requirements for annual filing as a Dormant (closed) company.

No problem. We can establish a UK company that owns companies in both Denmark and Sweden.

No. It is only English companies that pay tax in England.

Yes, we can certainly help you with that. However, not all banks accept cryptocurrency.

No. You must pay tax if you take money out of your company for your private consumption in Holland.

We can establish your company at any time, so everything will be prepared for when you are ready to start.

No, we can establish companies in other jurisdictions.

Your company will have to close down if the renewal fees are not paid.

There is no legal requirement to have a UK company when selling services. But there can be an advantage as digital services are taxed differently than if they are physical products. It is also possible that customers feel more secure when buying digital services from an English company, as they then comply with local trading standards.

Yes, that is possible. The price depends on the number of expected calls each month. You could also consider an English Skype phone number which is easy to set up.

Yes, a postal / service address in England is possible. You can use our address if you wish or there are many options in London. All offer a basic service for the forwarding of letters.

Your European bank account cannot be used for your English company however, funds can of course be transferred from the English bank account to a local account.

The owners of the new company can be either individuals or a company.

It is no problem to make an owner agreement. However, it is the owners who must agree on what should be in it. If there are legal issues, it is probably best to consult a lawyer. If it is a more personal thing, then it is you who are best placed to do this. We’ll just need a copy and you’re off.

All directors and shareholders must agree to close a UK company. You have to pay all outstanding debts, inform employees and the accountant, and pay all corporation tax and other tax liabilities. The closure takes 3 months.

CPIE Services collaborates with numerous banks but, whilst not all are based in England, most accept English companies.

Unless the company has registered a branch in a country where the UK has a double taxation agreement, the company will normally be taxed in the UK on its international profits.

It is not necessary. We can help you with an online bank.

No problem. We have various solutions for you.

Yes, we have varous options but not always in the local bank account format. Talk to us about your requirements.

It is not easy to get an account, but we have various options that we can discuss with you.

A copy of your passport, driving licence, proof of address etc. Contact us for a list of what is needed.

Yes, this is possible.

We will make the application in the director’s name and you will get access once the account has been opened.

Yes, this is possible.

No, this is not possible. All banks must know who owns the account.

Yes, we have various solutions depending on the company set-up.

Most banks offer a bank card, but some of them don’t. Some banks offer a ‘pre-paid’ card. It depends on which bank is best for your business.

Some English and Dubai banks require a visit. We offer online e-banks where the application process is done exclusively online.

It is no longer a mandatory requirement.

All companies are required by law to keep a complete record of income, expenses, assets and liabilities.

The first accounts (Annual Accounts) must be filed 21 months after the company’s incorporation and annually in subsequent years.

UK accountant’s fees usually depend on how much work is involved but you should expect around 50-70% of what it costs in Denmark.

No.

Usually every 3 months.

No.

After 12 months of operation, an annual report must be submitted. It must be reviewed by a local registered accountant and submitted to Companies House no later than 9 months after the closing date. Guideline price is between EUR 1200 – 1600 annually.

If there is no activity in the company then Dormant Accounts will be filed.

If the imported products had zero duty and zero VAT then no deferment account would be required.

If duty and VAT were due on the goods, HMRC would not release the goods until the duty & VAT liability has been secured which is generally by a deferment account belonging to the importer or the use of a Customs broker deferment account.

See answer to 1 above.

Even if the goods are transferred from an entity in one country to an entity in another country, duty & VAT may still be liable.

It depends on the Incoterms agreed with their customers / end user in the UK. (common term used in freight).

There would be an import customs clearance fee.  There may be other costs depending on the products?

Regardless of a branch office or a Limited company, goods imported in the UK will be liable to the duty & VAT due on the tariff code of the goods.  The EU company would most likely need to register for VAT.

It depends on the Incoterms agreed with their customers / end user in the UK. (common term used in freight).

Unless the goods were entered to Inward Processing in the UK,  then the duty cannot be repaid if the goods were returned to country of origin.

If the goods are imported from a related company then Transfer Pricing Rules at Arm’s Length should apply.  The 6 valuation rules are then applied at import and if a price has been paid, then the transactional value will be used?