General information
20%Tax rate- 24 hoursTime of establishment of the company
- NoneMinimum capital
Scotland is part of the UK. The country’s main financial centre is Edinburgh – the seat of most companies established by foreign investors. Scotland enjoys the interest of many investors due to the gentleness of its tax authorities, its favorable membership of the European Union and its openness to foreign investment.
Scotland’s legal system is a common law system based on the Roman-Dutch continental system. The main difference from the English legal system is the Scottish regulation of trusts, which is regulated by the local Scottish Parliament. The legal system governing the establishment, operation and closure of companies in Scotland is the same as the British system.
Company registration procedure
Registration of the company:
- The company is registered in Companies House – currently the United Kingdom (including Scotland).
- In order to register a company you can use the registration forms available online at Companies House – in this case you only need to indicate the basic data concerning the company, such as: company name, registered office address, subject of activity, shareholder, director and shares, as well as the capital of the company.
- The next step is to draw up the memorandum of association and the company’s statute – Companies House allows you to generate a template document.
- The company must have at least one director and is obliged to have a registered office for registration purposes.
Shareholders:
There are no restrictions on the number of shareholders, however, a minimum of one shareholder is required to establish the company. Foreign shareholders are allowed. A shareholder may be a natural person or a legal entity.
Management Board:
At least one director must be appointed to manage the company. A shareholder may act as a director. Any change in the position of director of the company must be reported to Companies House.
Registered office:
The Company must have a registered address in Scotland. Correspondence handling and the company’s contact telephone number should be guaranteed.
Time to set up a company:
The time for setting up a company is 24 hours.
Capital:
No minimum capital requirements.
Documents:
Company documents are available online at Companies House. In order to be able to do business outside the UK, you may need to obtain notarized documents of the company, which will be accompanied by an apostille. These services are provided by notaries (notary public).
Taxes and finances
Part of Scotland’s economic strategy announced on 13 November 2007 is to provide a favourable business environment to support investment, innovation and business development.
Foreign investors in Scotland are offered a wide range of tax exemptions, including government loans and subsidies for environmental and research and development investments.
Accounting
Companies are required to prepare annual statements. Companies with revenues in excess of £10.2 million in a tax year or assets in excess of £5.1 million are required to audit their accounts.
| Tax rate | – Income tax: 33.5% from £300,000 to £1200,000, 31% above– Capital gains tax: 18%– Dividend tax: 10% to £ 37400 of the value of dividends, 32.5% to £ 150,000 and 42.5% above– VAT: 17,5% |
| Minimum capital | None |
| Shareholders | Natural or legal person – at least one shareholder |
| Foreign shareholders | Yes |
| Foreign holding | Yes |
| Legal obligations | Mandatory annual audit when exceeding the turnover limit |
| Annual fees starting from the 2nd year | Nominated shareholders, registered office, power of attorney, preparationand submission of the annual report and zero income cost declarations: 1500 € + VAT plus shipping costs |
| Deadline | 3 working days from submitting the documents |
| Registered office | Registration address in Scotland, it is advisable to have a physical office for VAT registration. |
| Banking | For Scottish LP companies active outside the UK, we recommend opening an account in banks located in Latvia, Estonia, Denmark, or Cyprus. Please contact us for more information. |
| Accounting | Compulsory annual accounts. |
Other information
Our clients often choose Scottish companies LPP (partnerships), whose shareholders are other companies – e.g. from BVI. To be able to open a bank account, you need the help of specialists and divide the procedure into several separate steps. Please note that banks rarely agree to open bank accounts for companies with complex shareholdings.
