UK Company drawbacks

[proples]

UK companies seem to be so cheap and easy to incorporate, so why is not everyone using them? What are their drawbacks?

 

[JohnLocke]

You have no privacy and you need to maintain accounting and filing a tax report each year. So there are not really any good tax incitament for foreigners living outside the UK to setup a company there.

Just my 2cents...

 

[David97255]

UK companies are not offshore at all, as admin said there is not only the incorporating front price to keep in head to maintain the company.
- Tax
- Accounting
- Annual return
- Registering adress fees.
It's always the same you need to find the country that fit your needs.
But if you look for offshore it s definitely not there.

 

[Martin Everson]

UK companies seem to be so cheap and easy to incorporate, so why is not everyone using them? What are their drawbacks?

A lot of people do use them. They are cheap to setup as the UK wants to encourage open investment in its economy and entrepreneurship without barriers.

The problem is they don't work for every bodies needs. As mentioned the drawback now is zero privacy unless you use a trust, tax and I would add Brexit and HMRC rules. Until the UK reduces its corporate tax rate to below 15%which will 100% happen if no brexit deal is struck plus reverses (slim chance) the open company register they have I would personally avoid for now.

Osborne pledges to cut corporation tax

 

[Safa]

UK corps is for straight forward business and if you have large pockets you can get huge tax benefits. For the average joe on this forum it's not a way to do tax avoidance.

 

[proples]

Regarding taxation, I saw this on a website. Is this information correct regarding the "no company taxes"?

Outcome: The LLP does not pay Corporation Tax as it is a “see through” (“path through”) entity and only partners are taxed on their individual income. UK LLP partners are not taxed on the profits that derived outside of the UK, if they are non UK residents (example, members through an offshore company). In the example above, the profit derives from Germany or USA, but kept in Dominica/Seychelles, etc and invested or redistributed (for example through dividends) as the beneficial owner see it fit.

 

[1nomad]

I think answers above refer to Ltd, but there's a big difference between Ltd and LLP

 

[negon]

I think answers above refer to Ltd, but there's a big difference between Ltd and LLP

Whats the major difference between the two entities?

 

[Min Park]

private limited company (LTD) or a limited liability partnership (LLP)

LTD you pay company taxes | 1 owner
LLP you pay self-employed taxes | 2 partners minimum