How To Setup OffShore IT Companies In The UK

Introduction

Offshore business entities have certainly spurred the industrial trend by accelerating higher margins and greater exposure. As a result companies, precisely the development companies aim to command the offshore expertise and make it the basis of smooth business sail. 

But the question is where the story begins, how to keep the story going, and make it actionable in a progressive country like the United Kingdom (UK).  If you are thinking of setting up offshore companies in the UK there are certain norms and notions to be considered.

Why choose the UK for an Offshore Company?

Honestly, there are several benefits of setting up a UK-based offshore company and enhancing your business horizon. The first and foremost advantage is the comparatively lower cost of maintenance with infinite growth opportunities. 

Alongside, the UK''s tax treaty network is known to minimize the withholding taxes on dividends. Moreover, there exists no mandatory requirement on a minimum paid-up share capital, and also authorized /issued shares are not subjected to any capital tax. 

The country also provides free hands in account audits making it convenient and comfortable for the companies to operate. Not to forget the companies can easily be set up in the least possible time of 24 yours which is the certainly one of the phenomenal advantage.

Incorporation Procedure and Documentation in the UK

The fast and efficient incorporation protocols and procedures make it the most favored nation for setting up offshore companies. To be noted upon the incorporation of the offshore company all the necessary credentials relating to the officers, directors, and shareholders shall be disclosed on the public record. So, now you must be curious about how to begin the registration or incorporation process in the country.

·       Be clear with the trade name which shall be accompanied by the suffix in its end to denote the limited liability. Thus, for this purpose either "Limited" or "LTD" shall be suffixed in the trade name.

·       The next step calls for registering the offshore unit with Companies House within a month of opening the company. To do so one shall fill the Form OS IN01 (Registration of an Overseas Company opening a UK establishment) along with registration fees (approx £20).

Besides the registration form, companies are required to supply the following information:

-          A certified copy of License and Passport

-          An original ( certified) copy of the applicant's residing address

-          Documents supporting the company's name and registered address (if pre-exists)

-          Complete details of the Company's proposed activities

-          Details of directors, promoters, and shareholders

-          Articles of Association (AOA) and Memorandum of Association (MOA)

In most cases, companies are also required to furnish a copy of the company's constitution which shall include a certified English translation.

According to UK Incorporation regulation, Private Limited Companies have to pay the country's corporation tax at the rate of 20 % to 28%. The precise rate is determined based on the annual return.  Along with this, the directors of the company are also responsible for paying income tax on their profits but no taxes are paid on the dividend received from the holding company.

Additionally, the companies have to decide and disclose their banking and transactions mechanism, it could be international banking or online mode, or both. The separate institutions' formalities are required for the same.

While going through the procedural formalities, the HM Revenue and Customs (HMRC) issues Unique Taxpayer Reference (UTR) which is sent to Company's registered address. The authority also details registering the company, filing the accounts, and paying corporate taxes.

Final Words

The UK provides ease along with excellence for offshore development companies. It allows them to deliver software development, digital marketing, virtual assistance, mentorship, or other services and expand their business ecosystem. The futuristic companies like Centrelocus (www.centrelocus.com) have already paved their way into the offshore ecosystem and are leveraging benefits to several startups and corporations for supporting their digital ride globally.