UK Company (UK limited company – UK Ltd)

The term 'offshore' is not used in UK legislation or in describing company forms. In UK there are no specific forms of company or other entities designed for offshore operation.

Legal form: Private limited liability companies are the most common form of business entity used in UK. The essential features of a private limited liability company are that the liability of members is limited to the amount of share capital subscribed to.

Name of the UK company: UK companies must use the suffix Limited or Ltd to denote limited liability and can use any name unless it includes words such as Empire, Crown, Imperial, Windsor, Royal, Assurance, Bank, Building Society British, National, Great Britain, United Kingdom, England, English, Scotland, Scottish, Wales, Welsh, Ireland or Irish – (if the words are used as a suffix, they are normally allowed). The initials 'GB' or 'UK' do not require approval.

'European' – will not be approved if they imply unjustifiable connection with EU. 'International' – as prefix major activity must be overseas trading, as suffix, company activity must be in 2 or more overseas countries or any other words deemed sensitive or offensive.

Memorandum and Articles of Association: A company is formed by submitting its Memorandum and Articles of Association to the Companies House along with the registration fee. Every company has a Memorandum of Association (except for an LLP), which determines its name, where its registered office may be situated and what it may do (its objects). The rules for the conduct of the company's internal affairs are contained in its Articles of Association. There is a standard form for the articles (in the case of a company limited by shares known as Table A), but this may be modified.

Shareholders: The minimum number of shareholders is one, the maximum number of shareholders is fifty in the case of a private company. Corporate shareholders are allowed. Shares may be held jointly by two or more people.

The share capital: There is no statutory minimum or maximum capital for a private company. It is now possible to set up a company with only one member and for that member to have only one share, but this is exceptional. Share capital in usually 1,000 pounds or above.

Directors of the company and secretary: According to the Companies Act every company must have at least one Director. A sole director cannot also be the secretary. Therefore, a company must have at least two officers, a director and a company secretary. However, it is possible for the company secretary to also be a director of the company if another director or secretary is also appointed.

Registered office: Every company must have a registered office, which is the address to which any formal communications may be sent. The company may change its registered office at any time by completing form 287, but the change only takes effect when it is registered at Companies House. The registered office must be a physical location as people have the right to visit the office to inspect certain registers and other documents. They should also be able to deliver documents there by hand. The registered office can be anywhere within the area stated in the company's memorandum. For a company incorporated in England and Wales, this will usually be England and Wales, but it may be just Wales. For a company incorporated in Scotland, it must be Scotland.

Taxation: Corporation tax on profits – £ per year (unless stated)