[REQ_ERR: 401] [KTrafficClient] Something is wrong. Enable debug mode to see the reason. BUSINESS IN THE UK: REGISTER A COMPANY IN ENGLAND OR BUY REAL ESTATE? – Lizlauers


Featured Image

There are few countries in the world where the development of small and medium-sized businesses is given the same attention as in the United Kingdom. If you have an active life position and you are cramped within the internal market, investing in a business on the shores of Foggy Albion can be the solution that is guaranteed to bring you the desired result. However, if you are determined to receive only passive income, the purchase and commercial use of English real estate will provide you with it. You will learn about all the advantages and disadvantages of entrepreneurship and the acquisition of real estate in England from this article.
Why does business in the UK attract investors from Russia?
Perhaps one of the main motives is the desire to move to a different level of development and the difference in the attitude of the state towards entrepreneurship between us and the British. The UK government provides support to foreign investors investing in UK businesses. The country’s unique position on the map, coupled with huge sales markets, provides a competent businessman with a stable income growth. Add to this the prestige of a company registered in the UK, and it becomes clear why every year there are more and more Russians who want to start their own business in the kingdom.
What companies do foreign investors open in England?
British corporate law gives a non-resident the opportunity to choose the legal form for his company from several available options at once. The choice is influenced by specific circumstances, for example, the desire to significantly reduce tax payments.

What types of companies exist in England
Most often, our compatriots discover:

Limited Liability Company (LTD);
Joint Stock Limited Liability Company (PLC);
Limited Liability Partnership (LLP);
Scottish Limited Partnership (SLP).
Company formation in the UK
By now, the process of starting a company has become noticeably easier and can even be carried out online. Registration takes from 1 to 5 days with the provision of constituent documents.

How to open a company in England
Choose a unique name and specify the legal form.
Provide information about the type of activity of the company being opened and the geography of its commercial activities.
Indicate the exact size of the authorized capital.
Provide information about the founders.
Although the whole process seems simple at first glance, it hides some pitfalls and potential risks – you will avoid unnecessary problems if you use the services of experienced lawyers.

5 advantages and 1 disadvantage of doing business in England
So that you are finally strengthened in your decision to open your own business in the Kingdom, we will start by listing the advantages:

Possibility of tax optimization. Although the UK does not belong to offshore jurisdictions, the peculiarities of the corporate and tax legislation of this country allow you to save on taxes. For example, if the founders of a limited liability partnership doing business overseas are not UK tax residents, they are not required to pay UK taxes.
Lack of strict foreign exchange control on the part of the state in small business.
Access to one of the oldest and most stable banking systems in the world, with excellent service and business lending conditions.
Limitation of the founders’ liability to the size of their share in the share capital of the company. According to corporate law, the minimum amount of the authorized capital can be anything, even £ 1.
In England, there are no strict requirements for the founder of the company. He may be a foreigner, not understand a word in English and not possess the necessary specialty. Moreover, a UK firm can be managed remotely or through appointed nominee managers.
The only disadvantage associated with doing business in the UK can be considered the costs associated with the need to:

have an office in the United Kingdom;
pay for the services of a secretary and an accountant.
Both issues can be resolved with the help of a law firm providing company registration services. Serious and reputable lawyers usually have for aspiring British businessmen that will provide you with a registration address and even secretarial services.
Why is it profitable to invest in UK property?
Buying real estate in a country with a strong economy and high political stability is usually always beneficial. These are not stocks that could lose value overnight. Real estate is tangible, it can always be used for its intended purpose and your right to it is inviolable.

And like any other, a British apartment or house will require additional investments for maintaining order and maintenance. However, such an acquisition is also a good way to save your money from inflation, and in some cases – the opportunity to receive stable passive income.

Which property to buy?
To generate passive income, both residential and commercial real estate are suitable for you. The most profitable investment options at the moment can be:

Office rooms
Especially if they are located in London, the heart of British business life.

Land plots for parking
Residents of capital cities do not need to explain how much such a purchase can result in annual income.

Student housing
In a country with many ancient universities of world importance, there is no shortage of students from all over the world who need to live somewhere. Therefore, investing in student housing is profitable even in the short term.

Other options can be buying a house (ideally, a home ownership where a cafe or shop is located on the ground floor), an apartment, or a share in a residential property under construction or existing.

How do you buy property in Britain?
Surprising but true. For our compatriots, especially those who have just decided to change their habitual location to the British Isles, it is better to acquire real estate with the help of representatives of the same law firm, which helps to obtain a residence permit and organize a move.

In order not to be unfounded, let’s consider how a competent lawyer can be useful at different stages of the transaction.

Selection of a suitable object. Already at this stage, lawyers who have long been engaged in solving such problems will have their own exclusive options from developers, which are rarely published in open sources. At your request, company representatives can organize a trip for the purpose of personal acquaintance with the selected real estate objects or represent your interests on their own.
When you decide on an option, they will also help you draw up a preliminary sales and purchase agreement and, if necessary, organize an independent appraisal of your chosen object in order to reduce the initial cost. A lawyer, unlike an ordinary realtor, will represent your interests, and neither the flaws of the purchased object nor additional clauses in the contract will be hidden from his picky gaze.
Full support of the transaction, verification of the final version of the contract, signing the contract in the presence of a notary, registering a new owner in the State Register – here the law clearly requires that at these stages your interests are represented by a lawyer and guarantee the purity of the transaction.
The final stage is called organizing the move. If you bought a house or apartment in order to live there yourself, an immigration lawyer will tell you how to move at the lowest cost and which organizations need to notify about their settlement. If the property is purchased as an investment, you will be offered management services.
Why invest in English property now?
Finally, we will tell you why it is so important to buy the British property you like as quickly as possible. The fact is that the Conservatives, led by Boris Johnson, have decided to fulfill one of their campaign promises. Therefore, the British cabinet announced an increase in the stamp duty rate for foreign buyers of residential property by 2%.

Stamp duty was already rather big, especially if this is not your first object and its cost exceeds £ 1.5 million. Therefore, if you were planning to purchase a house, estate or apartment in England, it is better to do it before April 2021. This way you can save a lot of money!