Registering in the UK worth it?

[Nowrid Ahsan]

I'm from a country where paypal, stripe and the other major payment processors don't work. I found that registering my company in the UK is fairly cheaper compared to the US. Registering the company in the UK comes with the registration in 2 days, hard copy of the docs, registered address in London and a business bank account for £46 and I can get a VAT number later on for about £55. Should I register in the UK even though my main targeted area is the US (UK is 2nd on the list)?

 

[KTiwari]

Once you get the merchant account registered in the UK, you will get a payment processor from the US. It's piece of cake. This is a good route for an overseas bank account. The downside, of course is tax.

 

[Nowrid Ahsan]

Once you get the merchant account registered in the UK, you will get a payment processor from the US. It's piece of cake. This is a good route for an overseas bank account. The downside, of course is tax.

I only need a tax id once I reach 80,000 in sales but at least I'll have no problem receiving payments

 

[Sephrata]

I only need a tax id once I reach 80,000 in sales but at least I'll have no problem receiving payments

Nope. If you start a company in the UK, you have to register with HMRC for corporation tax and then you pay 20% tax on your profit.

 

[Nowrid Ahsan]

Nope. If you start a company in the UK, you have to register with HMRC for corporation tax and then you pay 20% tax on your profit.

https://www.gov.uk/vat-registration/overview
first line

 

[Sephrata]

https://www.gov.uk/vat-registration/overview
first line

That is VAT, not corporation tax. Two big differences.

Be very careful starting a UK company. You have a lot of responsibilities and costs are attached with this.

 

[KTiwari]

That is VAT, not corporation tax. Two big differences.

+1 to this. I forgot to add that if you are registering as 'international business' it will cost more. If you know a cheaper deal, I am listening

Tax will not be a big problem for you since you can open an offshore bank account with UK company registration. Depending on the service you choose, it is expensive or cheap. But it is not as easy as running a Cyprus company. UK Company + IBAN bank account is very easy. These bank accounts with LP or Payoneer is free.

 

[MisterF]

I only need a tax id once I reach 80,000 in sales but at least I'll have no problem receiving payments

The £80k threshold is for VAT currently at 20% for Vatable products.
On top of that will be your corporation tax on your business profits.

Although collected by the 'taxman' these are both totally different types of tax.

 

[cooper1210]

LOL @ Tax free income at £80,000

 

[Nowrid Ahsan]

The £80k threshold is for VAT currently at 20% for Vatable products.
On top of that will be your corporation tax on your business profits.

Although collected by the 'taxman' these are both totally different types of tax.

mate can you PM me want to ask a couple of stuff

 

[Duffers5000]

You also wont get a business bank account too easily without being a resident. I know the company formation websites offer that as part of the package but its not that easy.

 

[lineager]

If you use stripe and register a UK address they will probably want a UK bank attached.

 

[Nowrid Ahsan]

You also wont get a business bank account too easily without being a resident. I know the company formation websites offer that as part of the package but its not that easy.

I am doing it through a company formation company, lets see how it goes

 

[Sephrata]

Much better, in my view, to set up a single-member LLC in the U.S. It's cheaper and there are less regulatory requirements.

The U.K. is tightening up on non-resident companies. It's a very complex area of taxation and it is highly advisable to seek professional advice.

 

[Nowrid Ahsan]

Much better, in my view, to set up a single-member LLC in the U.S. It's cheaper and there are less regulatory requirements.

The U.K. is tightening up on non-resident companies. It's a very complex area of taxation and it is highly advisable to seek professional advice.

The cheapest single member LLC is around $500 (too much for me atm)

 

[Sephrata]

If you use stripe and register a UK address they will probably want a UK bank attached.

As soon as a non-resident U.K. company has a physical address in the U.K., then it is highly likely HMRC will regard that as a permanent establishment and as such, the company will then be liable for corporation tax on the worldwide profits.

 

[Sephrata]

The cheapest single member LLC is around $500 (too much for me atm)

Look at Colorado. It's $50, you can do it yourself online. There are cheap registered agents for $40 a year also.

I should add though, getting a U.S. bank account is not so easy. Normally you will need to be physically present in the U.S. to get this set up, although I gather there are still ways around this.

 

[KTiwari]

Look at Colorado. It's $50, you can do it yourself online. There are cheap registered agents for $40 a year also.

Didn't know this. Let me give this baby a try. Thanks man.

 

[seohug]

You will need a proof of your address in the UK to open a bank account and be physically present. For the company address, you can use the accountant's to save money and let them deal with paperwork and letters from HMRC.

 

[KTiwari]

better USA than UK if you want registering company

Care to explain this OneLiner Man??