What are the benefits of forming a limited company? 
The main benefit is the protection provided by limited liability. This means if your business runs into financial trouble, your assets will not be at risk. Other benefits include credibility and tax efficiency.
What does a company limited by shares mean? 
It is the most popular type of limited company. 'Limited by shares' simply means the liability of the owners is limited to the nominal value of the shares issued by the company.
Does it take a long time to register a company? 
Mostly it takes 3 to 6 working hours; however, it depends on Companies House workload on the day.
Can I register a company on my own? 
Sure. One person can form a limited company in the UK. You will need at least one director, who can also be the company's shareholder (owner).
What do I need to register a company? 
1. A company name that is not used or registered at Companies House.  
2. A physical address in the UK to use as your registered office address. You will have a registered office address and service address included in your package. 
3. The details of all directors and shareholders, including full names, residential addresses occupations, dates of birth, and nationalities.

Do I need to be in the UK to register a company? 
No. You can register it as a non-UK resident from most locations in the world. you will be required to have a UK-registered office address to complete the registration, which we provide in our package. 

What kind of payment does Wakanda West accept?  
We accept all kinds of payments, credit or debit cards including Mastercard, Visa, American Express, bank transfer…etc.

Do I need a business bank account? 
No, you don’t need it as there is no legal obligation for a limited company to open a business bank account; But in practice, it is almost impossible to operate without one. A limited company is a separate legal entity from its owners; so, you should keep your personal and business finances separate.

Is there a time frame to start trading with my new company? 
You can start trading through your new limited company immediately after it is registered at Companies House.
Does Wakanda West provide support after registering my company? 
Yes, we provide you direct telephone or email support for our customers during the lifetime of your company registration with us.

Q: How much is the tax for UK companies?
A: The current corporation tax rate for UK companies is 19%. This applies to all profits made by the company, regardless of where they are earned.

Q: How much is the VAT for UK companies?
A: The standard VAT rate in the UK is 20%. This applies to most goods and services sold in the UK. However, there are some exceptions, such as food and children's clothes, which are zero-rated.

Q: Do I need to pay tax from day one of starting my company?
A: No, you do not need to start paying corporation tax until you start making a profit. However, you will need to register for corporation tax with HMRC as soon as you form your company.

Q: Is the VAT applied to customers who are not in the UK?
A: No, VAT is only applied to goods and services sold to customers in the UK. If you are selling goods or services to customers outside of the UK, you will not need to charge VAT.

Q: Who pays the 19% tax or 20% VAT?
A: You are responsible for paying VAT to HMRC, but you can usually add it to your invoice and charge it to your customers. You can also include VAT in your prices, but this may make your products or services less competitive.

Q: Why do I need a service address for my UK company?
A: Having a service address for your UK company is important for several reasons:
  • It protects your home address from being made public.
  • It gives your company a professional image.
  • It can be used for legal purposes, such as serving legal documents.
  • It can be used for marketing purposes, such as displaying your company address on your website or business cards.

Q: Do I need to pay tax if I register a company but I don't have clients yet?
A: No, you will not need to pay corporation tax until you start making a profit. However, you will still need to file a corporation tax return with HMRC every year, even if you have made no profits.

Q: Do I need to register myself in VAT?
A: No, registering for VAT is voluntary. However, you are required to register for VAT if your annual turnover exceeds £85,000.

Q: Is registration easy, so I can make it myself?
A: Registering a company can be a complex process, and it is often advisable to seek professional help from an accountant or company formation agent. This will help you to ensure that your company is registered correctly and that you are compliant with all of the relevant laws and regulations.

Q: How can I find a reputable company formation agent to help me register my UK company?
A: There are many reputable company formation agents in the UK. When choosing an agent, it is important to make sure that they are experienced and qualified. You should also ask about the services they provide and their fees.

Benefits of Forming a Company in the UK:
There are many benefits to forming a company in the UK, including:
  • Limited liability: Company directors have limited liability for the company's debts, which means that their assets are protected.
  • Tax efficiency: Companies in the UK pay corporation tax at a rate of 19%, which is one of the lowest rates in the world.
  • Access to finance: UK companies have access to a wide range of financing options, including bank loans, grants, and investments from venture capitalists.
  • Credibility: Forming a company can give your business a more credible and professional image.
  • Business growth: Forming a company can help you attract new customers, grow your business, and expand into new markets.

Types of Companies in the UK
There are four main types of companies that you can form in the UK:
  • Sole Trader: This is the simplest type of business structure, where the owner is personally liable for all of the business's debts.
  • Partnership: A partnership is a business owned and run by two or more people, who are jointly and severally liable for the business's debts.
  • Limited Liability Partnership (LLP): An LLP is a type of partnership where the partners' liability is limited to the amount of capital they contribute to the business.
  • Limited Company: This is the most common type of business structure in the UK, where the shareholders' liability is limited to the amount of capital they contribute to the business.

Ongoing Obligations of Running a Company in the UK
There are a number of ongoing obligations that you must fulfill if you run a company in the UK, including:
  • Keeping accurate records: You must keep accurate records of your company's income and expenses.
  • Filing company tax returns: You must file an annual corporation tax return with HMRC, even if you have made no profits.
  • Paying corporation tax: You must pay corporation tax on your company's profits.
  • Filing VAT returns: If you are registered for VAT, you must file quarterly VAT returns with HMRC.
  • Maintaining a registered office: You must maintain a registered office in the UK, which is the address where legal documents can be served on your company.

Q: How does the 19% Tax Work and is Applied?
A: Corporation tax is a tax that is applied to the profits of companies in the UK. The current rate of corporation tax is 19%. This means that companies must pay 19% of their profits to HMRC. Corporation tax is calculated by deducting allowable expenses from a company's gross income. Allowable expenses include things like rent, wages, and materials. Companies must file an annual corporation tax return with HMRC, which details their income, expenses, and tax liability.

Q: Is it permissible for me to change my company's status to dormant while I am still actively trading and generating income outside of the UK?
if a company changes its status to dormant while it still has trading activity or receives income from its activities outside the UK, this would be considered a breach of the dormant company regulations and could potentially lead to penalties or even prosecution. The purpose of dormant company status is to allow companies that are not currently trading to reduce their administrative burdens and costs. However, it is important to note that dormant companies are still subject to certain obligations, such as filing annual accounts and corporation tax returns. If a company changes its status to dormant while it is still trading or receiving income, it is essentially misrepresenting its status to Companies House and HMRC. This could lead to a number of consequences, including:
  • Fines or penalties: Companies House and HMRC can issue fines for failing to comply with the dormant company regulations.
  • Prosecution: In some cases, the directors of a company could even face prosecution for misrepresenting the company's status.
  • Backdating of corporation tax liability: If a company is found to have been trading while it was dormant, it may be liable for backdated corporation tax.

In addition to these legal consequences, there are also reputational risks associated with changing a company's status to dormant while it is still active. If a company is found to be in breach of the dormant company regulations, it could damage its reputation with its customers, suppliers, and investors. 

Therefore, it is important to ensure that your company meets all of the requirements for dormant status before changing its status. If you are unsure whether your company is eligible to be classified as dormant, you should consult with our tax advisor.