LTD potentials

[runninginthend]

Hello,

I am considering to open a LTD company in the UK from a European country.

My main questions:

Is a registered office, offered by one of the many companies featuring this service (see EACBS website for an example), considered as a valid head office for my business? :|

Is it possible for me to trade only in my home country (Italy), while having my head office in the UK?

Please feel free to add any additional comments and suggestions.

 

[Jennie Rich]

Hi,

You might want to try your local branch of the Enterprise Europe Network. They should be able to advise on this sort of matter. This page has a list of their offices in Italy.

http://een.ec.europa.eu/about/branches/IT/

You might also find some useful advice on the operations page of Open to Export. http://opentoexport.com/topics/operations/

Hope that this helps.

Jennie

 

[Rumpole56]

I replied to this in the thread you posted in the Legal section.

Not quite sure what you mean by "head office". Your registered office address may be different from your main business or trading address, though it doesn't have to be. The Registered Office is a legal requirement, to enable Companies House to send official documents relating to registration of the company, and for the service of court/legal papers etc. This must be a UK address. Your business and trading addresses can be anywhere you like, including Italy.

The registered office service offered by company formation agents does not normally allow you to use the address for general trading purposes; only for official documents as described above. For a business or trading address (in the UK) you will need a mail drop or virtual office. Some of the company formation agents also offer this service for an additional fee.

A UK limited company is legally required to have a separate bank account IN THE COMPANY NAME. You cannot use a personal account for this purpose. Almost all of the UK banks are nowadays very unwilling to open accounts for companies which have non-UK resident directors and/or shareholders, even though the company is technically and legally domiciled in the UK. You may have better luck with Italian banks, or if that also proves difficult to impossible, somewhere else in the EU such as Latvia, Malta, or Cyprus (I know!) where the banks are still a bit more relaxed. Opening a bank account will be a lot more problematic and complicated than registering the company!

Also be aware that your company will be liable for UK Corporation Tax at 20% on WORLDWIDE profits. If you will not be trading or generating income in the UK, you might look at the alternative business structure of a Limited Liability Partnership or LLP. This is a juristic person and has the same limited liability as a Ltd, but does not attract Corporation Tax. Additionally, as long as the LLP members are non-uk residents and the entity does not trade in the UK, there is no liability for UK Income Tax either. It takes a little longer to set up than a Ltd (around 7 days) and a minimum of 2 members or partners are required (for example, your wife could hold 1% of the equity).

I suggest you use the services of a company registration / formation agent who has experience with international, rather than just domestic, formations.