A Guide To Setting Up A Business In The Uk

An Expert's View about Work Contracts in the United Kingdom

Posted on: 18 Mar 2010

Our aim with this publicatuon is to give you a basic understanding of the statutory framework of UK businesses to enable you to formulate a strategic plan to establishing a successful UK organisation.

GUIDE TO SETTING UP A BUSINESS IN THE UK ?Artaius offers an excellent menu of services and are ?exible in the way they work with us. They?re approachable and easy to talk to and keep us informed of everything they do.? Mike McDonnell, Con?gure One GUIDE TO SETTING UP A BUSINESS IN THE UK Contents INTRODUCTION 01 CHOOSE THE RIGHT TRADING ENTITY 02 THE TAX REGIME 05 EMPLOYMENT MATTERS AND PERSONAL TAXATION 09 BANKING ARRANGEMENTS 12 SEEK PROFESSIONAL ADVICE 12 ABOUT ARTAIUS 13 APPENDICES 14 ARTAIUS ADVISES INTRODUCTION This guide is intended to assist overseas entrepreneurs who wish to set up a business in the UK. There are many reasons why the UK is an ideal location in which to trade. You may want to test the market Our aim here is to give you a basic Some aspects of setting up in the or use the UK as a stepping understanding of the statutory UK may seem daunting, but we stone to trade in Europe. The UK framework of UK businesses, the can simplify the process for you. itself offers a home market of tax situation, direct and indirect, This guide should serve as a good approximately 61 million and the and knowledge of employment starting point. But it cannot replace European Union?s (EU) population issues, to enable you to formulate a face to face meeting with us, is in the region of 380 million. a strategic plan to establish a where we will be only too happy Establishing your organisation in successful UK organisation. to discuss your plans and advise the UK will be signi?cantly easier on your speci?c situation, on a no than elsewhere in Europe. An outsource specialist such as obligation basis. Artaius is a one stop shop for Depending on the location and incoming investors to the UK. type of business, there are We have the specialists to ensure Melanie Troiano FCCA attractive grants and incentives to that the administration and all Client Relationship Director encourage foreign companies to the back-of?ce tasks are well set Artaius Limited set up in the UK. Artaius can help up and run smoothly, allowing you take advantage of all such your management team to Telephone: +44 (0)1438 758100 bene?ts for overseas businesses concentrate on running and Fax: +44 (0)1438 847150 and individuals coming to the UK. expanding your business. Email: advice@artaius.com The UK is multi-cultural and welcomes outsiders. Other bonuses are that it lies in the central time zone between the USA and the East, and has good communication links to the rest of Europe. 01 ARTAIUS ADVISES CHOOSE THE RIGHT TRADING ENTITY ?It is important to choose the right trading entity... it has implications on the tax you pay and the requirements for ?ling accounts.? Forming a company in the UK is Types of Trading Entity not be liable for any unpaid debts of its UK straightforward, but it is important to select subsidiary. Liability is limited to the amount the right entity through which to do business; The four different types of company and their the members have agreed to contribute to the it has implications on the tax situation. (This relative advantages and disadvantages are: company?s assets if it is wound up. is considered in more detail on page 5 where we deal with the UK tax regime). Private Company Limited by Shares (Ltd): The minimum requirement to register a limited company is one shareholder, owning one There are regulations regarding the use of A limited company is a separate legal entity, share with any nominal value, and one director. business names which cannot be the same as, even if it has a parent company. Membership However, there may be as many directors and or too similar to, an existing company?s name. is created by the issue of share capital. shareholders as required, none of whom have The company may be ?stand alone? (with to be resident in the UK. Setting up a business presence in the UK shares owned by individuals) or it may be immediately brings accounting and ?ling a ?subsidiary? with shares owned by the Continues overleaf... requirements as well as the obligation to parent company. register for taxes. This section highlights the main issues overseas companies should The company?s liabilities are limited to the consider before deciding upon the type of amount of its assets and issued share capital. business unit it sets up. Thus, if the UK company is wholly owned by an overseas parent, that parent would ARTAIUS ADVISES 02 There is no requirement to trade in the UK, but PLC status does carry additional An annual return must be prepared and the company must have a registered of?ce; this responsibilities and compliance requirements. accounts ?led with Companies House each year. does not need to be its trading address. There This means all groups, regardless of size, is, in fact, no obligation for a trading address which include a PLC as one of the companies, LLPs are popular with professional groups such at all or UK resident of?cers or shareholders. have to be audited and must prepare as lawyers or accountants, joint ventures and in A company is either registered in Northern consolidated accounts annually. the ?nancial services industry. Ireland, Scotland, or England and Wales and the registered of?ce must be situated in the UK Establishment Advice from Artaius relevant jurisdiction area. A UK establishment is effectively an extension Many overseas companies wanting to set up This type of company can be formed easily and of the overseas company operating in the in the UK ?nd the private limited company the inexpensively within 24 hours. UK and is not a separate legal entity. Any most attractive type of trading operation. No contractual arrangements or liabilities entered consents are required, no local shareholders or A company needs to prepare and ?le into by the UK establishment are binding on directors and no minimum capital rules apply. annually a copy of its accounts with The the overseas company. The UK establishment Registrar of Companies at Companies House, is subject to UK law and UK taxes. A UK All administrative tasks can easily be prepared in accordance with UK company law. establishment must have a trading address in outsourced and indeed Artaius offers expertise Once ?led, these accounts are available on the UK and present evidence that it is trading in these functions. public record. from that address. Accounts need to be ?led within nine months of A certain amount of documentation Artaius? specialists will the company?s ?nancial year-end. A company is required to set up a UK establishment. can choose its year-end; it is common to Artaius can assist in producing this. Setting examine every case choose one that coincides with that of the up a UK establishment can take up to three individually, taking into parent company. weeks, less if all the requisite information is available. A UK establishment can cease account all the factors of A statutory audit may also be required if operating quickly. the size of the company exceeds certain the situation, to suggest the thresholds. Currently this means: Although a UK establishment and a best trading operation to company both provide a UK presence, a 1) If gross revenues exceed £6.5 million limited company is more permanent and suit your needs. or independent, and third parties often favour 2) If gross assets exceed £3.26 million. dealing with limited companies. If an audit is required, the cost of maintaining While the accounts of the UK establishment the company will be higher than a UK do not need to be ?led at Companies House, establishment, but a company does provide the accounts of the overseas company the protection of limited liability. must be ?led annually, in English. Thus, if your business is sensitive to the amount Public Limited Company (PLC) of information that is in the public domain, then a UK establishment may not be the A PLC operates in the same way as a limited best choice. company, has similar requirements and is easy to set up. However, there must be a minimum Limited Liability Partnership (LLP) investment in share capital of £50,000. Only £12,500 needs to be paid up in cash, but the In 2000 a new form of corporation, a Limited unpaid balance of the issued share capital can Liability Partnership (LLP) was introduced. This be called upon to be provided by the current combines the bene?ts of the limited liability of a shareholders at anytime, if funds are required private company limited by shares with the tax by the company. transparency of a partnership. 03 ARTAIUS ADVISES ?Time was of the essence in the early stages and Artaius made everything fall into place very quickly.? Janelle O?Connell, Calleija Jewellers THE TAX REGIME ?Artaius? specialists will ensure not only that you comply with UK tax requirements, but also that your business has the most ef?cient tax structure.? Once your business is formed the next step is Tax rates Corporation Tax payment and return to register for various taxes. The current Corporation Tax rates are shown Companies pay corporation tax on their pro?ts 1. Corporation Tax in the table below. and can carry forward trading losses against 2. Employment Tax/Pay As You Earn (PAYE) future pro?ts of the same trade, for an 3. Value Added Tax (VAT) inde?nite period. Financial Year 2009/2010 Pro?ts exceeding £1,500,000 1. Corporation Tax 28% (standard rate) A company is regarded as tax resident in the Pro?ts under £300,000 UK if it is incorporated in the UK or if its central 21% (small companies rate) control and management is exercised in the UK. Registration is straightforward by means Marginal relief fraction 7/400 of Form CT41G issued by Her Majesty?s Effective marginal rate on pro?ts Revenue and Customs (HMRC). The 29.75% between £300,000 and £1,500,000 information required comprises: Names of directors Name of parent company (if there is one) The trading activity The period-end date for the ?rst accounts of the company. 05 ARTAIUS ADVISES Whilst the accounting period reference date The company must produce an annual return is quite ?exible in the UK and can be chosen showing the total tax and NI contributions paid when the company is formed, the tax return by the employee and employer in a full year. ?We were looking for is due within 12 months of the end of the help and understanding accounting period; it can be changed later Payroll processing is a complex and laborious in certain circumstances. This enables a UK task and the incorrect calculation of the various and Artaius have subsidiary to have the same accounting period deductions can incur penalties for a company. as its overseas parent. It is strongly recommended to outsource this delivered and been very task to experts. Corporation tax returns have to be prepared consistent, from sales each year and the tax is payable within nine 3. Value Added Tax - VAT to delivery.? months of the company?s accounting year-end. In common with other European Union (EU) Eric Richardson, Skura Corporation Professional accountants normally prepare the states, the UK imposes Value Added Tax (VAT) corporation tax return and calculate the tax on most business to business and business payable for submission to HMRC on behalf of to consumer transactions. Currently, this sales their client. tax is chargeable by businesses if they are making annual taxable supplies exceeding One of the partners at Artaius can handle all £68,000. Some services and products are your tax matters or deal with your accountants ?zero-rated? or ?exempt?. A zero-rated sale is on your behalf. classed as taxable (VAT being charged at a rate of 0%) but exempt supplies are not taxable 2. Employment Tax - PAYE and ignored as far as the VAT registration threshold is concerned. Every business organisation needs to be registered for Pay As You Earn (PAYE). This is If the VAT threshold is exceeded, or the system that HMRC uses to collect Income expected to be exceeded in the near future, Tax and National Insurance Contributions (NI) the business must register itself for VAT and from employees as a deduction from their must account for VAT on its supplies of gross pay as they earn it. goods and services. The PAYE collected in the payroll process is When a business is registered for VAT it must payable monthly to HMRC within certain time charge VAT at the prevailing rate on all its sales constraints; late payments are liable to suffer of goods and services in the UK. interest and, if outstanding for more than a th month of the ?scal year end (April 6 ) will suffer At the end of each quarter, the business automatic penalties. must submit a VAT return showing the total VAT it has charged to its customers as well The tax deducted from salaries is income tax. as the VAT paid to its suppliers. The net Income tax rates vary depending upon personal amount is either paid to HMRC or claimed circumstances and speci?c personal allowances back from them. alter the threshold for paying income tax. The current rates are shown in Appendix 1a. A business may register for VAT on a voluntary basis before it is required to do so, provided NI contributions are also deducted from that it can adequately demonstrate its intention employees? earnings. The company pays to trade, or that it is already trading below the an additional ?xed percentage of pay as its threshold of £68,000 per year. NI contribution. (These rates are shown in Appendix 1b). Continues overleaf... ARTAIUS ADVISES 06 Overseas businesses setting up in the UK VAT Returns need to be aware of several important VAT - related issues: Most businesses complete quarterly VAT returns. These have to be submitted to HMRC i) Goods and services supplied outside the EU within one month of the end of each quarter together with a remittance for the VAT payable If a UK business sells goods to customers on the return. This process can be carried out outside the EU, and can demonstrate that online. If a registered trader has zero-rated the goods have left the EU, such exports are sales (e.g. exports) then he can expect to zero-rated for VAT. However, if goods are receive regular repayments. These businesses imported into the UK, VAT will need to be have the option to ?le monthly VAT returns in paid at the point of entry. This VAT can usually order to receive those repayments earlier and be reclaimed by businesses that are help the company?s cash ?ow. registered for VAT. There are other schemes available to help The rules concerning the supply of certain types and sizes of business. For services to customers outside the EU are example, businesses up to a certain size may more complicated. For example, if a UK opt to ?le VAT returns annually, or account for subsidiary provides services such as VAT on a cash-basis, or account for VAT at an consultancy, technical support and marketing agreed ?at-rate. to its parent company, based outside the EU, these supplies are outside the scope Businesses are also required to ?le European of VAT. General management services, Community (EC) Sales Lists. These are however, are currently subject to VAT. These currently restricted to the sale of goods to rules are changing with effect from VAT-registered customers in other EU st 1 January 2010. member-states. However, this regime is being expanded to include many services as well as st ii) Supply of goods and services within the EU goods, from 1 January 2010. Rules exist to create a ?level playing ?eld? Finally, those businesses involved in the trade across the EU and to remove any in goods between EU states above a certain competitive advantage that may be gained threshold, are also required to complete intrastate by purchasing goods or services from another returns. The current threshold is either sales or EU member state where the prevailing rate of purchases over £270,000 in a calendar year. VAT is lower. Advice from Artaius A UK business, registered for VAT, does not have to charge VAT on the supply of goods The team at Artaius is familiar with all aspects or most services to businesses in other EU of the UK tax regime; there are other taxes and countries as long as it is satis?ed that the reliefs applicable to individuals and companies. customer is registered for VAT in his own We will advise according to your situation. country. Such supplies are zero-rated in the case of goods, and outside the scope of Artaius can deal with the VAT application on VAT in relation to services. However, the your behalf, as well as all the correspondence purchaser must account for the notional and check on progress. VAT that would have been due if they had purchased the goods or services from a We can also ensure that all those complex supplier in the same country. This is known aspects of your UK company?s payroll are dealt as the ?reverse charge? mechanism. with ef?ciently and at a modest cost. 07 ARTAIUS ADVISES ? At the time we were actually in the process of setting up a new of?ce in London, so it seemed to make sense to take the opportunity to request a recommendation of a good ?nancial outsourcing provider in the UK.? Aaron Akerman, Oz Communications EMPLOYMENT MATTERS AND PERSONAL TAXATION ?It is important to understand UK employment regulations.? Individuals who work in the UK are liable to Working Hours Work Permits UK tax; all employees are subject to UK laws, no matter who employs them or their Full time employees in the UK work the longest Most overseas people working in the UK need country of origin. hours in the EU. The Working Time Regulations a work permit and a visa in order to take up provide basic rights and protections for workers. employment; however, the following do not As an employer it is very important to have a They limit the average working week to 48 hours need work permits or visas: good grasp of UK employment regulations. - although workers can opt out of this limit. The UK laws protect the employee. There can Nationals of the EU be serious and expensive consequences if an Fringe Bene?ts Those born in Gibraltar employee can prove unfair dismissal, sexual Commonwealth citizens who entered the harassment, racial prejudice, earnings of less Workers are entitled to 28 days? annual paid UK on the basis that a grandparent was than the minimum wage or just unfair treatment. leave. This minimum legal holiday requirement born in the UK Long term sickness is no excuse for dismissal. includes public holidays of which there are Husbands, wives and dependent children eight a year. Most companies grant paid under 18 of people who hold work permits. Artaius recommends using specialist human holidays of four to six weeks. resource consultants. For instance, they can set up standard employment contracts for each employee and produce an of?ce procedure manual which covers formal disciplinary processes, holidays, sickness, notice and the employment and dismissal of staff. Minimum Wage This allows wage costs to remain competitive whilst protecting employees. Current minimum wage rates are set out in Appendix 4. 09 ARTAIUS ADVISES Personal Taxation A person?s country of domicile is the country Reciprocal agreements are in place with a that they consider to be their permanent home. number of countries which mean that the The basis on which the individual is subject Even if someone has not lived in his homeland employers of overseas nationals seconded to to UK tax depends not only on whether the for many years, this does not prevent him from the UK who continue to pay the equivalent of person is ?resident? here, but also whether being domiciled there. national insurance in their home country, and they are ?ordinarily resident.? the employee, are exempt from paying Most people who come to the UK for National Insurance. Individuals who are resident and domiciled employment will be able to claim to be in the UK are subject to UK tax. Individuals domiciled outside the UK. Share Option Schemes are taxed at source at basic and higher rates on their employment income and bene?ts Living as a foreign domiciliary in the UK can after allowances. bring signi?cant tax advantages. Investment The UK has certain income and capital gains arising outside The highest rate of tax currently is 40% and the UK are not taxed in the UK if the funds ?approved? share th due to rise to 50% from 6 April 2010. concerned are not remitted to the UK. incentive schemes which th The tax year runs from 6 April to the UK Foreign domicile status should not be provide considerable tax th following 5 April. taken for granted. A claim must be made to HMRC and they have the right to challenge advantages to employees to Current Income Tax rates are set out in it. In practice, it is usually accepted that enhance their remuneration Appendix 1a. a person who comes to the UK for employment purposes is likely to return package. Resident, Ordinarily Resident or Domiciled to his homeland. in the UK? Tax Concessions Artaius can advise on the various incentive A person is considered resident in the UK for schemes and reporting obligations. tax purposes if: All overseas employees are usually liable to tax and national insurance on their salary and - s/he visits the UK regularly and on average bene?ts in the UK in the same way as UK for more than 90 days a year over a four nationals. However, in respect of bene?ts, year period. certain concessions are available where an - s/he arrives in the UK intending to stay for employee of an overseas company has been at least 3 years seconded to the UK for up to two years. This - s/he spends more than 183 days in the allows the individual?s employer to provide UK in a tax year. accommodation, travel and other similar bene?ts tax free. An individual?s liability to UK tax may also be determined by whether s/he is considered as There are also certain concessions for habitually or ordinarily resident in the UK. This employees serving longer in the UK entitling would depend upon their intentions in coming them to tax relief on travel. to the UK, the accommodation they occupy and the length of their stay. Social Security If they intend to stay in the UK for three years Social Security, also known in the UK as or more, or if they lease accommodation National Insurance (NI), is the scheme for three years or more, then the individual whereby people in work make payments becomes ordinarily resident from the towards bene?ts; both the employer beginning of the tax year during which the and employee are required to make NI accommodation is acquired. contributions. (Appendix 1b indicates rates). ARTAIUS ADVISES 10 ?Artaius looks after issues including our payroll, tax and accounts and I rely on them to keep us compliant with UK business legislation.? Aaron Schielke, Airbiquity BANKING ARRANGEMENTS ?Our banking contacts are used to dealing with companies establishing a UK business unit.? After you have established an entity, one where the head of?ce or parent company licence or a certi?ed copy of any of these, plus of the next most pressing tasks is to open operates outside the UK. a recent - within the last three months - bank a bank account. This is a requirement for or credit card statement, utility bill, identifying registering for VAT. Money Laundering Regulations your home address) to comply with the UK Government?s strict regulations relating to There are four main Banks with branches The ?nancial institutions and professionals anti-money laundering. throughout the UK. The facilities and who help you set up in the UK will be required services they offer are similar, but often what to verify the identity and background of the Advice from Artaius differentiates one bank from another is the owners and Directors of any business unit relationship with the managers, and the speed and monitor your business in the light of the Artaius can help collate the requisite with which they respond to requests. stringent anti-money laundering legislation. documents to ensure that they are accepted by third parties and banks. Artaius has good contacts at the banks and To open a new bank account you will need will be pleased to introduce you to its banking complete identi?cation documents (for Do not hesitate to ask for an introduction to contacts who specialise in dealing with clients example, passport, identity card, driving our banking contacts. SEEK PROFESSIONAL ADVICE ?Consult professionals with in-depth knowledge of UK ?scal, legal and administrative procedures.? Setting up a business in a different country with the legal, administrative and all the other experts in their ?eld to ensure that you receive requires greater assistance than starting questions which arise when setting up a new the best possible, most comprehensive up in your usual country of residence. We business and which have been outlined on advice, to realise the establishment of your understand that an entrepreneur will have these pages. business in the UK, in the most cost his goals for his new business and probably effective way. a good knowledge of product, research and An outsource organisation, such as Artaius, development, the services to be offered, will assign a director to every entrepreneur To a newcomer the whole process may suppliers - all aspects of his business which or business. He or she will be the key seem daunting, but the raison d?être for cannot be easily delegated. contact in the UK and will be quali?ed to Artaius? experts is to tackle the hurdles and carry out many of the required processes. to help in the process of establishing and Artaius has the wealth of experience in dealing We also work with other professionals and maintaining a UK presence. ARTAIUS ADVISES 12 ABOUT ARTAIUS ?Artaius have always been very timely and reliable with regard to their services and any request for information and they have always been proactive in pointing out problems and opportunities.? Francesca Novello, for Gianfranco Ferré UK Ltd (English subsidiary, IT Holding SpA) Artaius, which evolved as an offshoot of The senior team at Artaius London-based Chartered Accountants, Wilder Coe, now numbers 20 team members. Robin Berry ACA The company is based in central London and Managing Director in Stevenage, Hertfordshire, which is easily Telephone: +44 (0)1438 847 117 accessible by road and train. Robin.Berry@artaius.com Today, Artaius is an international ?rm, with a worldwide client portfolio covering many industry sectors. Melanie Troiano FCCA Client Relationship Director Since 2000, Artaius has been a major Telephone: +44 (0)1438 847 105 partner with East of England International, the Melanie.Troiano@artaius.com organisation responsible for Inward Investment for the notable East Anglia region of the UK. Artaius is also on the list of outsourced adm Alfred Levy FCAinistration service providers at UK Trade and Director Investment in most overseas countries. Telephone: +44 (0)1438 847 101 Alfred.Levy@artaius.com Our partners are always Robert Coe FCA pleased to arrange an Director initial, con?dential meeting, Telephone: +44 (0)20 7616 8836 Robert.Coe@artaius.com at no cost, to discuss the individual needs of incoming investors to the UK and to Neil Warren ATT VAT Consultant see how Artaius may be Telephone: +44 (0)1438 758100 able to help. Neil.Warren@artaius.com 13 ARTAIUS ADVISES APPENDICES Appendix 1a Appendix 1b th Employee National Insurance rates: Year to April 5 2010 Income Tax - taxable bands 2009/10 (£) Rate Personal allowance (minimum) 6,475 Up to £5,715 0% Basic rate: 20% £0 - £37,400 £5,716 - £43,875 11% Higher rate: 40% £37,400 + Over £43,875 on excess 1% th Employer National Insurance rates: Year to April 5 2010 Dividends Rate Bas Up to £5,715ic rate taxpayers 10% 0% H Over £5,715igher rate taxpayers 32.5% 12.8% Appendix 2 VAT Regulations st st Rates of Tax From 1 Jan 2010 From 1 Dec 2008 Standard rate 17.5% 15% Reduced rate (including fuel and power) 5.00% 5.00% VAT as a fraction of gross price 7/47 3/23 st st Annual Turnover Limits From 1 April 2010 From 1 May 2009 Registration To be advised £68,000 Deregistration To be advised £66,000 Taxable supplies are mainly either standard Zero-rated supplies Exempt supplies rated, reduced rate or zero-rated. There are A zero-rated supply is a taxable supply, but the No VAT is chargeable on an exempt supply, certain supplies that are not taxable and these tax rate is nil. Such supplies include: but directly attributable input tax cannot be are known as exempt supplies. reclaimed. Exempt supplies include: Food There is an important distinction between Land Books, pamphlets, newspapers, journals, exempt and zero-rated supplies. Insurance maps, music etc. Betting, gaming and lotteries Construction of buildings etc. If your business is making only exempt Finance International services supplies, you cannot register for VAT and Education Transport cannot therefore recover any input tax Health and welfare. Drugs If your business is making zero-rated Imports, exports etc. supplies, you should register for VAT as your Charities etc. supplies are taxable (but at 0%) and recovery of Clothing and footwear.input tax is allowed. ARTAIUS ADVISES 14 Appendix 3 Other changes Accounts It will also be necessary to notify Companies For UK establishments of overseas companies Information to be ?led at Companies House for House of: located in countries that require the publication Limited Companies of accounts, a copy of those accounts (with A change in the registered name or of?ce a certi?ed translation if necessary) must A limited company comes into existence when address. be delivered within three months of it is registered at Companies House. Limited Certain changes to shareholdings and the public disclosure. companies must also ?le certain documents company?s share structure. with Companies House when they are ?rst set The grant of a mortgage or charge over an asset. For UK establishments of overseas companies up and on an ongoing (normally annual) basis. located in countries that do not require the Information to be ?led at Companies House for publication of accounts, a set of accounts Starting a new company a UK establishment prepared in line with the requirements of To set up a limited company, it is necessary to s700 must be delivered to Companies send the following to Companies House: Starting a new UK establishment House within 13 months of the company?s Within one month of forming a UK accounting reference date. Such accounts A Memorandum of Association. establishment, it is necessary to send the must relate to the company and not solely the Articles of Association: describing how the following to Companies House: UK establishment. company will be run, the rights and obligations of the shareholders and the powers of the Completed relevant form. An annual document-processing fee of £30 company?s directors. A certi?ed copy of the company?s should be sent with each set of accounts. Form 10 (Statement of the First Directors, constitutional documents, including the Secretary and Registered Of?ce): giving charter, statute and operating agreement. Closure of a UK establishment details of the company?s registered of?ce and A copy of the latest set of audited accounts If a UK establishment is closed, it is necessary the names and addresses of its directors and required to be published by parent law. to notify Companies House. All obligations to company secretary. The current registration fee (£20). deliver documents to Companies House cease Form 12 (declaration of Compliance with from the date of receipt of the notice. the Requirements of the Companies Act): Changes to the company stating that the company meets all the legal It is necessary to notify Companies House If the UK establishment closed is not the requirements of incorporation. of any changes to the original information only UK establishment, but was originally ?led as and when they occur. These the principal one, then it is necessary to notify Accounts and returns include changes to the: Companies House of the UK establishment Companies are required to submit details at which the constitutional documents are of directors and shareholders annually to Constitutional documents of your overseas now kept. Companies House. company. Companies are also required to ?le copies Company details, including the name, legal of their ?nancial statements annually at form, accounting requirements, head of?ce Appendix 4 Companies House. address, objects, share capital and Companies are required to inform Companies governing law. Minimum Wage Rates House when there are changes of the Director or secretary or their particulars. From October 2009 the applicable rates are: accounting reference date. Details of the UK establishment, including its business name, address and the nature of £5.80 per hour for workers aged 22 years Change of company secretary or directors the business. and older It is necessary to notify Companies House of: Person authorised to accept service or to A development rate of £4.83 per hour for represent your company in the business of workers aged 18 - 21 inclusive The appointment of a new director or the UK establishment, or their particulars. £3.57 per hour for all workers under the company secretary. UK establishment against which the age of 18, who are no longer of compulsory The resignation/retirement of a director or the constitutional documents and accounts of the school age company secretary. company are registered. These changes need to be noti?ed within 14 Accounting reference date of a company (From October 2010 the adult statutory days of the change. subject to ?ling accounts. minimum rate will apply to 21 year olds). 15 ARTAIUS ADVISES Care has been taken to ensure that the information in this booklet is up to date at the time of writing. However, law and practice do change and you are invited to seek specific professional advice for your circumstances. The latest rates and information can always be viewed on our website at www.artaius.com We look forward to hearing from you: advice@artaius.com Artaius Limited: Specialist advisers for overseas businesses setting up in the UK Telephone: +44 (0)1438 758100 Fax: +44 (0)1438 847150 Email: advice@artaius.com Web: www.artaius.com Artaius Limited Southgate House 233 - 237 Old Marylebone Road St George?s Way London Stevenage, Hertfordshire SG1 1HG NW1 5QT
Posted: 18 March 2010