The UK Companies Registry has recently announced adjustments to UK company formation and registration fees. So the bosses who are planning to register a company in the UK pay attention!
From 1 May 2024, UK company registration fees will increase fourfold from £12 to £50, in line with the Economic Crime and Corporate Transparency (ECCT) Act, which will have a knock-on effect on CIC's registration fees.
NO.1. Reasons for the rise in official fees
The increase in company registration fees is closely linked to the Economic Crime and Corporate Transparency (ECCT) Act.
From 4 March 2024, the UK Business Office has introduced the first package of measures under the Economic Crime and Corporate Transparency Act. It is intended to combat economic crime and support economic growth.
The UK Companies Registry will also have greater access to information, stricter checks on company names, and more stringent checks on company names that may give a false or misleading impression to the public. to improve the quality of data on the Registry Register.
The introduction and implementation of the ECCTA Act heralds a new and strong regulation of UK companies, and the compliance requirements for customers registered in the UK will be stricter in the future.
NO.2, details of the adjustment of the registration fee of the UK company
The cost of registering a company in the UK has risen from £12 to £50 for the most common company registered online.
There are also varying degrees of price increases for company registration through other means, such as:
- Same-day registration fee - from £30 to £78
- The cost of paper registration - from £40 to £71
- Online financial review of the company - from £13 to £34
- ……
There are also overseas corporate entity registrations, which have increased to varying degrees.
The only exceptions are those entities that have protected status or are awaiting a protection application. These entities are required to pay an additional paper filing fee.
NO.3. What are the changes in the new regulations?
The Economic Crime and Corporate Transparency Act was approved on October 26, 2023, and the first set of changes was introduced on March 4, 2024. Key changes include:
1 New rules for registering an office address;
2 Stricter checks on the company's name;
3 Greater authority to inquire about information and request supporting evidence;
4 sharing data with other government departments and law enforcement agencies;
5 All companies are required to provide a registered email address;
6 Take steps to clean up registers and use data matching to identify and delete inaccurate information;
7 All companies are required to confirm at the time of registration that their purpose of forming the company is lawful and to confirm in the confirmation statement that their intended future activities will be legal.
In short, it is recommended to register a UK company as early as possible, and reserve enough time to apply for the submission of information, etc., and at present, the registration cost and maintenance cost of the UK company are relatively favorable.
NO.4. Advantages of registering a British company
Registering a UK company has multiple advantages and is favored by global investors, and the following are the main highlights:
1. High international reputation and market recognition
As a global financial center and an old capitalist country, the UK has a perfect company registration system and a mature business environment, and registered British companies enjoy a high international reputation, which is easy to win the trust of global customers and the respect of partners.
2. Significant tax advantages
In addition, UK companies can enjoy a corporate income tax rate as low as 19%, and there are various tax relief policies and the possibility of reasonable tax avoidance arrangements, such as R&D tax incentives, patent box system, etc.
3. Flexible company structure and management
UK company law allows for the establishment of a one-person limited company, where the shareholders and directors can be the same person, and there is no nationality restriction.
4. Convenient financial services
The UK has a world-class financial system, well-developed banking services, fast opening of corporate bank accounts, no foreign exchange controls, and free capital entry and exit, which provides great convenience for cross-border trade and investment.
5. EU Market Portal (Note: The UK has officially left the EU in 2020, but can still maintain economic and trade ties with the EU through specific agreements)
Although the UK has left the EU, it still has relatively easy access to the huge European market and a certain degree of trade preferences through trade agreements with the EU.
6. The platform does not withhold and pay VAT
If the seller uses a local account in the UK, the platform will not withhold and pay VAT, and the VAT will be declared by the local company in the UK.
7. Global talent gathering
The UK's education system is world-renowned, bringing together a large number of high-quality professionals, providing a wealth of resources for the company to recruit outstanding employees and build an international team.
Overall, this series of fee changes reflects the UK government's determination to tighten the company registration process and strengthen the fight against economic crime.
At the same time, it also reminds enterprises and individuals to pay more attention to complying with relevant laws and regulations when registering companies to ensure the authenticity and legitimacy of company information.