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1. Limited company subscribers may be residents outside the UK.
2. You must appoint a minimum of 1 Director.
3. Directors can be corporate bodies or private individuals.
4. A Director can be of any nationality.
5. All English and Scottish companies must appoint a company Secretary.
6. A Secretary can be of any nationality.
7. If there is only ONE Director he or she CANNOT also be the Secretary.
8. There is no maximum and no minimum share capital.
9. There is no minimum share capital, no paid-in capital requirement.
10. The company is required to have a registered office in the United Kingdom.
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English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Important Note

Our corporate, tax and securities lawyers have extensive experience in the issues involved in all type of business entities, including corporations, private limited companies, public companies, limited liability companies, limited partnerships, general partnerships, limited liability partnerships and professional associations. Our lawyers advise clients in the choice of entity to utilize for any given business venture. Such advice includes the tax advantages of the respective entities as well as the non-tax or business issues involved in each type of entity.

Our lawyers continue their representation of such entities on an ongoing basis and advise the entity and its owners regarding the business issues which arise from time to time (such as labor and employment issues, tax issues, negotiating contracts, securities issues and licensing and regulatory matters).

Our lawyers also represent many entities which are involved in negotiating mergers with other entities or acquisitions of other entities. This representation includes advising the business and the owners on the purchase or sale of a business and on tax-free mergers or other reorganizations of business entities, as well as structuring divisions of an existing entity into two or more new entities.

We structure a variety of commercial lending transactions including corporate loans, real estate development loans, asset based loans, agri-business loans, floor plans and home builder lines of credit. Members of our firm advise financial institution clients and their corporate counsel on a daily basis with respect to general lending issues including those relating to UK and Cyprus documentary stamp and intangible taxes, bankruptcy and creditors' rights, environmental concerns and problem loans. We have extensive experience in complex loan workouts.

The firm's Trusts and Estates attorneys specialize in estate and trust administration matters and the development of estate tax planning strategies designed to help our clients achieve maximum savings in income, estate, gift and generation skipping taxes. Our Trusts and Estates attorneys handle the traditional aspects of personal estate planning, such as the preparation of revocable trusts, wills and irrevocable trusts, and also deal with all aspects of tax controversies with the Internal Revenue Service dealing with estate, gift and generation skipping tax, including filing estate and gift tax returns, representing our clients in audits of those returns, and appeals to the IR and courts of proposed tax deficiencies.

Our attorneys monitor the latest developments in both tax and non-tax laws affecting estates and trusts and lecture extensively on those subjects around the country to numerous professional groups and organizations. The firm's Trust and Estate attorneys are proficient in analyzing and implementing the latest techniques to reduce estate and gift taxes, including, for example, family limited partnerships, GRATS and charitable remainder and lead trusts. The firm's Trusts and Estates attorneys also advise our clients on the income, gift and estate tax consequences of charitable gifts; handle the negotiation and preparation of marital agreements; provide asset protection planning for individuals; and have extensive experience in the establishment of private and publicly supported charitable organizations, international estate planning and estate and trust litigation, as well as post-mortem tax planning.

We recognize that a client's estate planning needs and matters that arise in the course of estate planning and administration frequently require expertise in other areas of the law, and we work closely with the firm's attorneys in other practice areas, including litigation, real estate, corporate and tax, to provide our clients with thorough legal advice.
English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Accounting Period

An accounting period cannot be more than 12 months. If a company prepares accounts for more than 12 months, the profits are apportioned between the first 12 months and the remainder. Non-resident companies may be subject to CT where they trade in the UK through a permanent establishment. Accounting period: A company incorporated in the UK is treated as UK resident. A non-UK incorporated company is treated as resident in the UK if its central management and control is exercised in the United Kingdom. The amounts of income and capital gains are basically determined by the tax rules that apply to individuals. For example, trading profits may be reduced by allowable expenditure incurred wholly and exclusively for the trade. However, companies are subject to many special rules.
English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Capital Gains

A company's capital gains are subject to CT at the normal rates. Companies continue to receive indexation relief on gains and do not receive taper relief. Capital gains may be offset by capital losses of the same accounting period or capital losses brought forward from previous periods. Roll-over relief is available, but not reinvestment relief. Companies are subject to different identification rules from individuals for disposals of shares and securities.
English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Rates of Tax

The rate of CT is fixed for the financial year ending each 31 March. Where an accounting period straddles this date, the profits are apportioned accordingly. The main rate of CT is 30%. This is charged where profits exceed £1,500,000, and in all cases for close investment-holding companies. The small companies rate of 20% is charged on the first £300,000 of profits where profits are between £50,000 and £1,500,000. Between the lower and upper profit thresholds (£300,000– £1,500,000), profits are in effect charged at a marginal rate of tax of 32.5%. Starting with the year to 31 March 2001, a company with taxable profits up to £50,000 is charged at a starting rate of 10% on the first £10,000 and an effective marginal rate of 22.5% on the next £40,000. Where a company has associated companies, all the rate thresholds are divided by the number of associated companies plus one. For example, a company with three associated companies will be taxed at 20% on profits between £12,500 (£50,000 divided by four) and £75,000 (£300,000 divided by four). Associated companies are broadly companies under common control.
English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Company Losses

A company's trading losses can normally be set against: Income and gains of the same accounting period. Income and gains of the previous year. Trading profits from the same trade in future years.
English Company Formations. Incorporate a Limited Company in the UK. Tax and Corporate Planning Dividends, Distributions and Advance Corporation Tax (ACT)

Companies do not have to pay tax at the time they pay a dividend. Corporation tax is paid at the normal time on the company's taxable profits without any deduction for dividends paid. A shareholder receives the dividend with an accompanying tax credit equal to 10% of the dividend plus tax credit. The tax credit is equivalent to the basic rate of income tax on dividends. Companies pay no tax on dividends received. Companies that paid dividends before 6 April 1999 had to pay advance corporation tax (ACT) of one-quarter of the dividend. The ACT could usually be set against a company's CT liability. The maximum ACT that could be offset was an amount equal to 20% of the company's chargeable profits, and surplus ACT could be carried back against profits of up to the previous six years. Any surplus ACT at 5 April 1999 that was not relieved in this way may be carried forward to periods after 5 April 1999 and set against CT after deducting "shadow ACT". Shadow ACT is equal to one-quarter of any dividends paid in the period, ie the ACT that would have been paid if the dividend had been paid before 6April 1999.

Helpful Resources
UK: Value Added Tax

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