UK Company Formation

ESSENTIAL FACTS

LOCATION: 54 00 N, 2 00 W
The United Kingdom consists of a group of islands, including the northern part of Ireland. It is located between the North Atlantic Ocean and the North Sea, northwest of France.

POPULATION: 60,776,238

CURRENCY: British pound (GBP)

LANGUAGE: English, Welsh, Scottish form of Gaelic

CLIMATE: Less than half the days of the year can be characterized as sunny in the United Kingdom; but temperatures are mild.

EDUCATION: Almost 100 percent of Britons age 15 and over has completed five or more years of schooling.

PUBLIC HOLIDAYS: There is no national holiday celebrating the United Kingdom; however, the following holidays are celebrated nationwide and marked with government and bank closures: New Year’s Day; Good Friday and Easter Monday; 1 May (Labour Day); Whit Monday (last Monday in May); August Bank Holiday (last Monday in August); and Christmas (25 and 26 December).

HISTORY AND GOVERNMENT

HISTORY
Although the lands that now make up the United Kingdom have a history dating back to 55 AD, it was not until 1801, when the Kingdom of Ireland came under British control, that the United Kingdom as we know it today was formed. The end of the Napoleonic Wars marked the rise of the British Empire, which flourished throughout the 1800s, until the end of the Victorian Era. The UK expanded its reach and in 1921 was the largest geographically it has been before or since. In 1922 Ireland was divided into Ireland, or the Irish Free State, with a majority of the counties in Ulster province remaining under British rule. In 1927, the official name for the UK became the United Kingdom of Great Britain and Northern Ireland.

POLITICAL SYSTEM
The United Kingdom is a constitutional monarchy presided over by Queen Elizabeth II and Heir Apparent Prince Charles, her son. The head of government is the Prime Minister; there is a Cabinet of Ministers appointed by the prime minister. Legislatively, the UK has a bicameral Parliament made up of the House of Lords and the House of Commons.

JUDICIAL SYSTEM
The United Kingdom’s judicial system is based on common law tradition with early Roman and modern continental influences. The House of Lords is the highest court of appeal. England, Wales and Northern Ireland each has a Supreme Court; Scotland has a Court of Session and a Court of the Justiciary.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish
Industry: Machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods

TRADE PRACTICES
Exports: Manufactured goods, fuels, chemicals; food, beverages, tobacco to the US, Germany, France, Ireland, Netherlands, Belgium and Spain
Imports: Manufactured goods, machinery, fuels; foodstuffs from Germany, US, France, Netherlands, China, Norway, Belgium

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Obviously, the nation that started the Industrial Revolution is on solid economic ground. But as the needs of the world have changed, so too has the main source of revenue has changed for the UK - with the service industry comprising almost three-quarters of the GDP. Of this percentage, financial services make up a large part, with London one of three worldwide “command centres” along with New York and Tokyo. The UK has no exact plans to join the EU, and therefore change to the euro, anytime soon.

Fiscal year: 6 April - 5 April

STOCK MARKET
The British stock market is made up of The London Stock Exchange, Lloyd’s of London and the London International Financial Futures and Options Exchange.

Market value of publicly traded shares: $3.058 trillion (2005)

MEMBERSHIPS
ADB (non-regional member), AfDB, Arctic Council (observer), Australia Group, BIS, C, CBSS (observer), CDB, CE, CERN, EAPC, EBRD, EIB, ESA, EU, FAO, G-5, G-7, G-8, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, MIGA, NATO, NEA, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PIF (partner), SECI (observer), UN, UN Security Council, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNMIL, UNMIS, UNOMIG, UNRWA, UNWTO, UPU, WCO, WEU, WHO, WIPO, WMO, WTO, ZC

BUSINESS

BUSINESS ENTITIES
A UK Limited Liability Partnership is the company formation best suited to for-profit entities dealing in international business. Shelf companies are available. All legal responsibilities fall to designated members, of which there must be at least two at all times; these members can be part of the executive organization, such as the secretary or one of the executive directors. The Registrar must be kept apprised of any designated membership changes in a timely manner. However, an LLP can have an unlimited number of designated members and undesignated members.

TAXATION

CORPORATE TAXATION
A Limited Liability Partnership in and of itself is not subject to taxes. Each partner named under the LLP is subject to taxes.

DOUBLE TAXATION
The United Kingdom is the world’s leader in number of double tax treaty agreements. However, double tax treaties are only applicable to companies whose members are legal residents of the UK. Therefore, Limited Liability Partnerships established for offshore purposes are not a part of double tax treaties.