company registration hong kong
The domain of hong kong company registration hong kong is a combined domain and is regulated under English law from the main Companies House office in Cardiff with a branch office in London. This is the normal choice for businesses operating in UK. Over the past ten years there has been an average of approximately 300, 000 new companies registered per year. A very high percentage are subsequently struck off within the first two years, many through failure to comply with statutory filing requirements.
If you are resident outside hong kong
If you are resident outside hong kong
There is another option for overseas companies. They may operate a branch of the existing domain registration, originating from anywhere in the world, as an oversea company. This means that there is no separate UK company formation but registration of a branch at Companies House Cardiff. Generally the branch then operates under the same UK controls as company registration hong kong.
Why you need a limited company
The primary reason to register a company is for limited liability. In the case of business failure personal assets are protected and creditors of the company can only proceed against assets of the company. There are two important exceptions. Banks will normally obtain personal guarantees from the company director in connection with company borrowing. Where a director has tax deducted on the company payroll UK HM Revenue & Customs has a right to collect unpaid directors income tax from the directors personally following the liquidation of a company.
The next most important reason is to obtain work or contracts. In some circumstances contracts are only available in UK to limited companies. If you are an Information technology IT contractor, or in some other consulting role, it will probably be a requirement that you have your own limited company. A subsidiary reason is that it may simply be perceived as more prestigious for your business to be a limited company.
Close behind is UK tax planning. If your business makes profits in excess of £45, 000 and you are able to moderate the amount you draw from the company you can avoid paying any personal tax and particularly avoid paying personal income tax at the higher rates of 40% and 50%. The company will only pay Corporation Tax at 21% until annual profits exceed £300, 000. There is special tax legislation to stop this being beneficial if the contact creates a deemed employment between the ultimate customer and the company director. This is particularly relevant to it contractors and depends on the contractual relationship.
A company is a separate legal entity, the reason to have a limited company may be to separate one business from another.
Business name protection is not a good reason for a limited company
Protection of a business name may not be a good reason to register a limited company. UK Companies House apply a very restricted and technical approach to uniqueness of name so even if XYZ is an international brand they will allow anyone to register XYZ (UK) Limited. Other existing companies have the right to apply to Companies House within one year if they feel that the name on the company register is too similar to theirs and that there is the danger of confusion between the two names which may adversely affect their business. Also they can assert their legal rights in other ways. For business name protection you need to go into the area of UK trademark registry and other business name registration data bases.
Alternative
You could operate your new business as a self employed sole trader and decide whether to register a company later. This has minimal setup requirements. You only need to inform UK HM Revenue & Customs that you have started.
Written by Vic Woodhouse, Chartered Certified Accountant and principal of V. G. Woodhouse & Co. in Ealing London UK. The firm specializes in helping family businesses when they start up and throughout their development with extensive experience of manufacturing and service industries, retail, IT contractors, construction contractors and property.
Why you need a limited company
The primary reason to register a company is for limited liability. In the case of business failure personal assets are protected and creditors of the company can only proceed against assets of the company. There are two important exceptions. Banks will normally obtain personal guarantees from the company director in connection with company borrowing. Where a director has tax deducted on the company payroll UK HM Revenue & Customs has a right to collect unpaid directors income tax from the directors personally following the liquidation of a company.
The next most important reason is to obtain work or contracts. In some circumstances contracts are only available in UK to limited companies. If you are an Information technology IT contractor, or in some other consulting role, it will probably be a requirement that you have your own limited company. A subsidiary reason is that it may simply be perceived as more prestigious for your business to be a limited company.
Close behind is UK tax planning. If your business makes profits in excess of £45, 000 and you are able to moderate the amount you draw from the company you can avoid paying any personal tax and particularly avoid paying personal income tax at the higher rates of 40% and 50%. The company will only pay Corporation Tax at 21% until annual profits exceed £300, 000. There is special tax legislation to stop this being beneficial if the contact creates a deemed employment between the ultimate customer and the company director. This is particularly relevant to it contractors and depends on the contractual relationship.
A company is a separate legal entity, the reason to have a limited company may be to separate one business from another.
Business name protection is not a good reason for a limited company
Protection of a business name may not be a good reason to register a limited company. UK Companies House apply a very restricted and technical approach to uniqueness of name so even if XYZ is an international brand they will allow anyone to register XYZ (UK) Limited. Other existing companies have the right to apply to Companies House within one year if they feel that the name on the company register is too similar to theirs and that there is the danger of confusion between the two names which may adversely affect their business. Also they can assert their legal rights in other ways. For business name protection you need to go into the area of UK trademark registry and other business name registration data bases.
Alternative
You could operate your new business as a self employed sole trader and decide whether to register a company later. This has minimal setup requirements. You only need to inform UK HM Revenue & Customs that you have started.
Written by Vic Woodhouse, Chartered Certified Accountant and principal of V. G. Woodhouse & Co. in Ealing London UK. The firm specializes in helping family businesses when they start up and throughout their development with extensive experience of manufacturing and service industries, retail, IT contractors, construction contractors and property.
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