It’s not difficult to register a UK company, but if you’re doing it on your own, it can end up taking more time and costing more money than necessary. Having said that, the UK is a very important market to expand your business into and the government has made it as accessible as possible in order to encourage entrepreneurs to take their business there. In this guide, we'll cover everything from how to form a company in the UK from Brazil and how much it will cost you to maintain your new venture.
Company Formation
You're probably wondering what exactly a company is. If so, you're in good company! A company is a legal entity that can be formed to conduct business. There are two types of companies: sole trader and limited liability partnership (LLP). A sole trader is the simplest form of business structure; it's just you doing things on your own with no legal separation from the individual. An LLP is much more complicated than a sole trader because it has more formalities and rules in place regarding ownership and liability for debts incurred by the partnership or LLC during its lifetime.
The biggest difference between these two types of company structures is that with an LLP, every member has limited personal liability for all debts incurred as long as they have acted honestly and responsibly (for example, not spending money recklessly). However in general terms there are several features common among all UK companies which are explained below along with their pros/cons:
Company Registration Number (CRN) - Every UK limited company must have a unique CRN issued to them by HMRC which contains important information about who owns them (shareholders), their directors etc., this info cannot change once registered so make sure everything looks right before applying!
İlayda Birol
Taxation
As a business owner, you will be responsible for paying tax on all income you receive. Income tax and National Insurance contributions are taken directly from your salary or profits by HM Revenue & Customs (HMRC). You may also have to pay corporation tax on profits your company makes.
If you're employed, your employer should deduct the correct amount of income tax from your wages and send it straight to HMRC. If they don't do this correctly, then you can make an extra payment yourself using the PAYE system.
You may need to complete a Self Assessment Tax Return if:
- Your taxable income is above the personal allowance
- Your circumstances change during the year (for example if you change jobs or start renting out property)
Accounting Obligations
The company must keep accounting records that accurately reflect its transactions and financial position. It must also file an annual return with Companies House within nine months after the year end.
The entity must prepare accounts in accordance with UK Generally Accepted Accounting Principles, which are published by the Institute of Chartered Accountants in England and Wales (ICAEW), or International Financial Reporting Standards (IFRS).
Accounts must be filed at Companies House within six months after the year end. They can be filed online through their web portal at www.companieshouse.gov.uk/filing-accounts/. Annual returns for companies registered on or after 1 April 2009 are contained within these accounts prepared under IFRS; those dates before this date have separate filing requirements from Companies House.
Laine Redpath
Banking
When you start your business, you'll need a bank account. You can open your own account with one of the UK’s major banks: HSBC, Barclays, Lloyds and RBS. However, use caution when choosing which bank to work with as many of them don't offer their services to foreigners and some require a substantial deposit before opening an account. The best option is usually HSBC as they are one of the few banks that do not require large deposits from non-residents (although there may be exceptions based on your particular situation).
If you want to open an account online while still living in Brazil or another country outside the UK then it's best to do this with an alternative banking provider. And this is the bit where we remote wamo, of course! With wamo, it’s possible to register a UK company with Companies House and open a business banking account all at the same time and from one place. No initial deposit required, necessary documentation only, and you can be up and running with a fully registered UK company and a smart, easy-to-use business account with all the bells and whistles, within just 48 hours,
Staffing
You must also take into account the type of business you are opening. The staffing requirements for a small, family-run business will differ from those of larger companies. An again will differ greatly if your business is e-Commerce. Additionally, if your startup is based in the UK and you are looking to hire employees abroad, this raises more complex legal issues regarding employment law and tax obligations. For example, it might be necessary to hire an HR professional with experience working with international teams who would be able to help recruit suitable candidates and ensure compliance with UK legislation.
It's important that you understand what skills and experience each member of your team needs to have before hiring them so that they can contribute effectively once on board. For example, if someone is going to be responsible for managing accounts or dealing with customers directly then it’s vital that he or she has good communication skills as well as expertise in bookkeeping software like Xero (which we'll talk about later).
Whatever the situation it is a requirement that you have a business address for your business. This is an absolute necessity. Again, wamo is able to provide a virtual office address which is ideal for digital-only, e-Commerce or any business that doesn’t practically need a physical office.
Open your business in the UK with wamo!
Opening a company in the UK from Brazil can be complex and time-consuming. Our professional consultants can guide you through the process to save you time and money.
What you get with wamo is a business partner with a focus on providing personal and professional customer service from a team who value not just your current efforts but oyur future goals and ambitions. Our job is to make it easy for you. Download the wamo app from Google Play or the App Store or head over to the homepage of this website to use the desktop version. Registering a UK company and opening a business account can be done in two days and customer support is ready to help if you need it - just tap on the chat bo in the bottom right corner at wamo.io.
