Advantages of a Limited Company:

	Limited
Applicable Law	Company Act 1985
Formation	within 48 Hours
Register changes	same day
Costs	Eur 175
Do I need notary?	NO
Purchase any of its own shares	YES
Lowest authorised capital	1 GBP
Capital contribution requirement	NO
Corporation as Director	YES
Members (owners) in Register	NO
Single member (owner) company	YES
Restrictions for single member company	NO
Limited formations for single member	NO
May single member company form another company?	YES
Limited Member's liability	YES
Objects (scope) of its business activity	Not exactly specified (all legal activities)
Trading of person banned in home country (except UK)	YES
Knowledge of legal form in the world	YES
Reputation of legal form in the world	YES
Branch in any country	YES
VAT in any country	YES
Taxes	UK Branch local
Tax rates UK	19%
Tax on dividends	19%
Company dissolution	Easily, 4 month

Competitive advantage for those trading in another EU member state: In order to unable common rules within European single market VAT tax law is governed by the 6th EC Directive. Based on those standards supplies from another Member State supplied by a business registered for VAT in that country are subject to VAT at the rate in force in the country of destination only. Therefore, there is not VAT on an invoice from another Member State ! If your Limited receives such delivery you simply credit your VAT account with an amount equal to output tax, calculated on the full value of the supply you have received, and at the same time debit your account with the input tax to which you are entitled. If you can attribute the input tax to taxable supplies, i.e. you receive the supply for business purposes, and can therefore reclaim it all, the reverse charge has no net cost to you. It is just matter of accounting and you need not pay any VAT. The same rule applies for companies in other Member States. This advantage is notably interesting when invoice payments are late. Your cash-flow is not debited with unpaid invoices then! Competitive advantage in UK Most businesses work on quarterly VAT periods and send in four VAT returns every year. However, if your turnover is under £1,600,000 (raised in April 2006) you can join the Annual Accounting Scheme and send in just one VAT Return a year! If your turnover is under £660,000 (excl. VAT) you could find the Cash Accounting Scheme helpful! This means you only pay VAT when your customers pay you. Similary, you can only claim VAT when you have paid your suppliers.

Most important:

• Formation is surely cheaper and faster than in your home country. Once obtaining Certificate of Formation by Companies Registrar you may start trading (48 Hours),
• branch is much simpler and easier to register than new corporation in your country,
• you need not notary to form company or make changes,
• Lowest authorised cupital is GBP 1 only.

Further important points:

• you may chose - almost - every name for your entity but it must contain "Limited"or "Ltd",
• The Company may purchase any of its own shares, provided that the terms of any contract is authorised by Special Resolution of the Company in General Meeting before the Company enters into the contract.
• liability of each member (owner) is limited to the assets of the company. Private property of a member is untouched (additional for EU: §§ 52-58 EU Agreement of Maastricht),
• the standard object (scope) of its business activity is set as "all legal activities" in the Articles of Association so the company is not limited to certain activities,
• if there is The Double Taxation Treaty between UK and your country
  • profits of an enterprise of UK are taxable only in UK unless the enterprise carries on business in your state through a permanent establishment situated therein,
  • dividends are taxed once under 19% rate (one rate for income and dividends)
• you need not make accounts and pay taxes in UK if you carry on business in your state through a permanent establishment situated therein,
• You will have a fully useable British address - registered office (requirement that we offer), that gives a guarantee that it is not a post box company,
• British commercial law is a model for many countries. Company coming from UK give your clients, partners and authorities image of seriousness and reputation, what may be for you an additional advantage in international trade,
• you may dissolve British Limited Company on a very fast and cheap way.

Disadvantages Limited:

• If your Limited Company formed a branch in your home country this entity is considered to be local subject formed under British law. It has the same rights and duties as other local legal entities. The only weak point might be entering a loan agreement with a bank as the authorised capital is 1 Pound only. However this drawback is relative since banks usually secure loans with company's assets. And British as well as other companies usually liable with all its assets.