Brexit negotiations have been progressing along a very turbulent road, leaving many British entrepreneurs confused about the value to be had from forming and running a UK company after our leaving of the EU. The reassurance to take comfort in right now is that if you’re forming a UK company, your contracts are drafted under UK law. What this means is that they will legally remain pretty much the same after the UK finally leaves the EU. Leaving the EU will not change the strong jurisdiction and long-standing regulators and laws of Great Britain.
If you’re considering forming a limited company, you should feel confident that virtually nothing has or will change with this process. The UK regulations and laws will be as relevant post brexit as they were prior to brexit. Here we explore how forming and running a UK limited company can
Limited liability company
Your business will get the full protection of limited liability if you are looking to trade through a limited partnership of company. As the director of your company, if your business was to fail in the future, your creditors will have no power to retrieve debts through your personal assets under UK law. This means things like your home, vehicles and personal finances are protected, providing that you did not act knowingly unlawfully whilst running the limited company.
Separate Entity
Your company will remain trading and active in its own right, regardless of any changes of shareholders or directors and remain a separate entity from yourself.So if, for example, a company director was to retire or pass away, the business is able to still function and trade as it always did. The business status will also not be affected by changes to shareholder numbers.
Tax Rate Benefits
Your business is able to benefit from low corporation tax rates, as a registered company. The corporation tax rate is currently 19% and prediction to reduce over the next 12 months. In comparison to other countries, the UK has a significantly lower corporation tax rate and plans to decrease this even further is an attractive incentive for those looking to begin forming a UK company.
Appealing Trading Opportunities
Business leaders speak with expert confidence of the future trading opportunities, post brexit. More competitive deals on an international basis are predicted due to the lifting of EU trading regulations which should, in turn, mean that much fairer deals and the emergence of new deals with commonwealth partners and other European countries.
Tax Grants
With a wealth of entrepreneur grants and tax relief schemes available there is a lot of financial help given by the government to aid business start ups in the UK. These financial incentives are not affected or controlled by EU influence and so should remain post brexit. In addition to the existing grants available, there may also be further financial advantages in order to boost new business growth in the UK after brexit.
Conclusion
Forming and running a UK company comes with a wealth of attractive benefits, set to not be negatively affected by the outcomes of Brexit.
If you are unsure about the different limited company formation packages available and what structure would be the most appropriate for your business, you can find out all you need to know through DNS Associates. Here to assist with the first steps to establishing and running businesses in the UK as one of the country’s industry leaders.