Company Formation in England

An increasing number of Hungarian entrepreneurs wish to set up a company in England, as this may be key not only to entering the UK market, but may also offer tax advantages. Company formation in England is possible with minimal share capital, even as little as GBP 1, making the UK market an excellent environment for any start-up business.
In addition to our core international legal services, we assist our clients with company formation in the UK, ensuring that the entire process is completed smoothly and in full compliance with the law. The electronic administration provided by our international law firm can save our clients time and energy, allowing company formation to be completed within as little as 24 hours.

What We Offer:
• Company formation for sole traders: through our advisory work, we help clients navigate legal complexities and handle all paperwork.
• Formation of a limited company or LLP: we handle all administrative tasks so that you can start your business activities quickly.
• We manage every step of company formation in one place, helping resolve legal and bureaucratic issues regardless of the company form involved.

Why Is It Worth Setting Up a Company in England?

If you wish to carry out economic activity in the United Kingdom, it is generally advisable to establish a company with a registered office in the UK. Although the process differs from what is customary in Hungary, this is in fact an advantage, as company formation in England is simple and transparent. The United Kingdom specifically supports newly launched businesses, so in the case of certain company forms there is no prescribed initial capital, start-up loan facilities may be available, and tax burdens are favourable.

At the same time, without experience it can be difficult to navigate English legal rules and administrative procedures, which is why you can rely on our team in every situation.

The Most Popular Company Forms:

Sole Trader
As in Hungary, sole tradership is also one of the most popular business forms in England. In this case, the sole owner of the business is entitled to all profits, but is also liable for all debts with their entire personal assets. If someone provides services alone or works for several companies, this business form may be the best choice.
Limited Company

A limited company is a company with limited liability, where the owner is liable for the company’s debts only up to the amount of capital invested in the business. This company form may therefore be favourable for those who wish to establish a business with relatively low risk. In the United Kingdom, there are two types of limited companies: the Public Limited Company (PLC) and the Private Limited Company (LTD). Shares in a PLC may be purchased by anyone, whereas shares in an LTD are held only by the owners. For small businesses in England, the LTD is the most popular company form. It is also the closest equivalent to the Hungarian Kft.

Unincorporated Partnership
Under English law, particular attention should be paid when cooperating with another contracting party under a common name. This can often create an unincorporated partnership, in which all parties involved may, as a rule, be personally and unlimitedly liable, including members who have since left. It is therefore advisable to consult an English lawyer before starting the business and to clarify liability issues in a partnership agreement.
LLP, or Limited Liability Partnership

The LLP is a company form introduced by the British government in 2001, combining the advantages of business partnerships and the LTD company form. Like an LTD, an LLP is a limited liability entity; however, while a limited company may be formed by a single person, an LLP requires at least two founding members. An LLP is not subject to corporation tax; instead, the participating members are taxed individually on the profits distributed among them.

What Will I Need for Company Formation?
• An English or possibly Hungarian bank account,
• Bank deposit certificate,
• Articles of association and memorandum of association,
• Proof of the company’s unique name,
• Trading licence,
• Documents relating to the shareholders, including their translations.

Smooth Company Formation – What You Should Definitely Pay Attention To
• When setting up a company in England, the first step is to choose the company name and registered office, and then start the company registration process.
• With the proper documents, company registration on the Companies House website takes only about half an hour.
• It is important that the company has a separate bank account distinct from the owner’s personal bank account.
• Different business forms may require different types of business insurance, depending on the risks involved.
• The company must also be registered with the tax authority, and the process differs between sole tradership and other company forms.

Hungarian Lawyer in England

Would you like professional assistance with company formation in England? Contact our international law firm.