FAQ

FAQ English Company

English company

Why should I establish a company in the UK?

By establishing a company in the UK, you can avoid the administrative burden of selling goods outside the EU. After the Brexit trade agreement which came into force on 1 January 2021, a large number of EU companies experienced major changes and challenges. Many English customers have stopped buying from European shops and webshops or refusing to accept items they have ordered because they are facing a bill of up to 30 percent on top of the purchase price when they have the item delivered. This is due to VAT, new taxes and duties. At the same time, Brexit leaves many SMEs facing a heavy administrative burden when it comes to shipping, returning or exchanging goods to the UK.

How long does it take to establish a UK company?

It takes 1-2 days.

Should an English company be registered for VAT?

No. It is only when the turnover exceeds £ 85,000 annually in England if you have English customers. If you only have turnover outside the UK, it is not necessary.

We are a EU internet company that needs VAT registration in the UK, due to sales via amazon in the UK and we also want a warehouse in the UK. Can you help with this VAT registration?

Absolutely. It takes a week or so for the registration to be approved. There is a small fee for this. We can also help with storage.

I sell to UK customers and export goods to England. Can you register my EU company for VAT?

Yes, we can help with this.

Can CPIE receive goods on behalf of my English company?

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

How do I get an EORI number?

We can help you with this.

Can I own an English company when I live in the EU?

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

Can I be a director of an English company if I live outside of England?

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

How do I avoid problems with my EU customers/suppliers not wanting to make payments/transfers to a foreign bank account?

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.

If I have an English company and live in EU, where do I pay tax?

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.

Can I be anonymous owner and director of an English company?

Yes. We offer a nominee service with Power of Attorney.

Can my EU company own an English company?

Yes.

As owner, can I loan money from my English company?

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.

Can I deduct travel expenses from my UK company?

Yes.

If I have an online shop in England, will it be affected by Brexit?

No.

What are the tax consequences of running an English Ltd company from EU?

You will need to pay Corporation Tax – currently at 19%.

What information about my English company will be available to the public?

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

If I am director, do I have to reveal my home address?

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

Which company documents will I receive when the company has been established?

When the company is registered, you will receive a copy of the Certificate of Incorporation and 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.

Do I need an English acountant for my UK company?

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

What does it cost to set up a company that owns other companies in EU?

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

Can I choose any name for my new company?

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

What are the advantages of trading as a Limited company in England?

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 registered as the real owner of the English company. It is also a legal requirement in the UK.

4. Company tax

Currently 19%

How do I get a registered address in England?

We provide this when we establish the company for you.

Can I form a Limited company and trade under a different name?

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

Can I form a Limited company and leave it dormant until I want to trade?

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

I am looking for a company in England that can have activity in Denmark and Sweden. Is this possible?

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

Do foreign companies pay tax in England?

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

I would like to hear about the possibilities of setting up a bank account and a company abroad - I trade with cryptocurrency

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

Do I have to pay personal tax in Holland from my company in England?

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

How close should we be to the launch before we set up our company?

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

Can you only establish companies in England?

No, we can establish companies in other jurisdictions.

How can I run my business, if I have nominee services in place?

If your company has a nominee director or shareholder, you will receive a Power of Attorney that confirms you have full control over your company.

What happens if I don't pay the renewal fee?

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

We only sell online digital services and only as subscriptions. We would like to sell these in the UK - and would therefore like to hear if it is a legal requirement that we establish a local company so that we can sell our digital service in the country?

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 and secure when buying digital services from an English company, as they then comply with local trade standards.

Is it possible to buy a local UK phone number through you?

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.

Is it possible to have a postal address in London?

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.

Is it possible that we can continue to receive our revenue on our European bank account after we have established a UK company?

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.

We are 3 owners in our company. We are in doubt: Should we own our new UK company through our joint venture or privately each?

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

If we choose to have a nominee as director, is he the one who must sign all agreements on behalf of the company?

Correct. He would have the authority to sign all relevant documents. What we offer is a legitimate company with nominee service that comes with a Power of Attorney that proves that you are the only one who makes decisions and manage the company as the real owner.

Is it possible that we can appoint a nominee ourselves?

Yes, that is possible. We set up the company with instructions from you, and you tell us who will be the director, shareholder / owner, etc.

If we are setting up a UK company, do we need an owner agreement with the company and is that something you can help with?

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 place to do this. We’ll just need a copy and you’re off.

What do we do in case we want to close down the company? How does this process work and what should we pay special attention?

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.

FAQ bank account

Bank account

Does my company bank account have to be in England?

You can have a normal, high street bank in England, or an online bank somewhere else depending on your circumstances.

If the company bank account is outside the UK, where will my UK company be taxed?

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.

Is it necessary to travel to England to open a bank account for my company?

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

I need an English bank account for my existing UK company - can you help with this?

No problem. We have various solutions for you.

What is required if I want an English bank account for my business?

You must be a EU resident.

Can you help me open a bank account for my local company (in EU)?

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

Can I get an account for Bitcoins?

Yes, this is possible.

What do I need to provide to get started with a bank account applicaiton?

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

Can I add a co-owner/colleague/employee to my account?

Yes, this is possible.

If I have nominee services, how do I get access to my account?

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

Can I get a foreign business account as an EU citizen?

Yes, this is possible.

Can I get an anonymous bank account?

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

I need a bank account for my Dubai company - is it possible?

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

Do I get a bank card with my bank account?

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.

Do I need to visit the bank to open a bank account for my company?

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

FAQ accounting

Accounting

Do I need a company secretary?

It is no longer a mandatory requirement.

What type of accounts and records should a company keep?

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

When do I have to submit my company's first accounts?

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

What is the price of a bookkeeper / accountant?

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.

Should payroll be submitted in the UK if the company has no employees in the UK?

No.

How often must a VAT return be submitted if my company is registered for VAT in the UK?

Usually every 3 months.

Can I get a loan from an online bank such as Revolut?

No.

What should an accountant be used for when there is no need to prepare VAT or payroll accounts?

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 1000 – 1600 annually.

What if there is no activity in my company?

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

FAQ - import/export

Import/export

If an EU company wishes to import to the UK, does it need a deferment account?

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

If needed, why?

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.

If not needed, why?

See answer to 1 above.

Does an EU company need a deferment account if they import goods to their own company/warehouse in the UK?

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

Does an EU company need a deferment account if they import goods directly to their customers/end user in the UK?

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

Would there be any other costs?

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

If an EU company owns a branch office in the UK (rather than an Ltd company), will they need a deferment account if they import goods to their own company/warehouse in the UK?

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.

If an EU company owns a branch office in the UK (rather than an Ltd company), need a deferment account if they import goods directly to their customers/end user in the UK?

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

If import duty has already been paid on goods, what happens if the goods need to be returned from either the UK company or from the branch? What needs to be paid and can they claim any money back?

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.

Customs value – is this based on the actual value of the goods or the invoiced value? i.e. moving goods to their own branch.

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?

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