General Information not many business formalities a country that favors foreign investment a tradition in service businesses
More than 10 types of companies: Private Companies Limited By Shares (Ltd) Limited Liability Partnership (LLP) Public Limited Companies (PLC) Companies Limited By Guarantee Property Management Companies Unlimited Companies & more.
Practical considerations (1) : amount of capital & financial risk nature of trade service or product business premises or can be run from home employees attraction of capital
Practical considerations (2) : Simple formation = sole trader or partnership More sophisticated business= incorporation
Proposed form for startupsLTD (Private company limited by shares) key feature: it offers limited liability to its members members and directors are not personally liable (unless they have acted wrongly in some way)
LTD (Private company limited by shares) no minimum capital can control your exposure to financial risk at least 1 director, 1 shareholder and 1 secretary (can be the same person) submit simplified accounts not full at the Companies House
LTD (Private company limited by shares) no local shareholders or directors required company can be set online in a few days registered office facility
A second choice: The Limited Liability Partnership (LLP) A hybrid between limited liability companies and traditional partnerships.
The Limited Liability Partnership (LLP) registration & filing of accounts at the Companies House members’ agreement pays no UK tax but its members do pay income tax may not attract foreign investment.
Public Limited Companies (PLC) usual for large enterprises minimum capital requirement of £50,000 A private company limited by shares can be converted into a public company and vice versa. .
Do not forget: Liability for insolvent trading Bank borrowing Landlords – personal guaranties Privacy vs ‘image’ .
COST (indicative prices): 250 euros - same day formation 1200 – 1800 euros - accountant costs per year Professional advice by lawyer (?)
6 main company types:o Private Limited Company (Sarl)o Public Limited Company (SA)o General Corporate Partnership (SNC)o Limited Corporate Partnership (SCS),o Corporate Partnership Limited by Shares (SCA) and theo Cooperative Company (SC). .
o Private Limited Company (Sarl)the most attractive type for start-ups .
Private Limited Company (Sarl)o requires 1 or several associates that can beo Luxembourg or foreign nationals, residents or non- residentso minimum capital €12,500o registered office is required in Luxembourgo must be incorporated before a notary publico business license by a ministry on application.
COSTS (indicative)o 2000 euros - 1 montho + capitalo 10.000 euros per year