The foundation-style Limited (Company Limited by Guarantee) is actually structured more like an association. It is the simple alternative to a foundation, one in which you keep 100% control over your assets.
Key advantages
- Top reputation. The City of London is the most important financial centre in the world.
- No asset value: membership cannot be transferred, sold or inherited. It is therefore worthless.
- Protection from seizure: the company's assets do not belong to its members.
- Corporation tax of 19% on profits under £50,000.
- No tax on gains from the sale of shareholdings of 10% or more held for at least one year.
- The UK has double taxation agreements with more than 100 countries, which reduce the tax on dividends the company receives.
- Members' rights are set flexibly in articles of association we draft for you, which are not public.
- Members (other than directors) can receive fees or benefits. Loans as well.
Services included in the fee
- Formation of the company in London
- Drafting of the articles of association, minutes and members' resolutions
- Prestigious registered office in the City of London for 12 months
- Mail forwarding by scan and email for 12 months
- Tax registration
- Articles of association drafted by a lawyer
- Support with transferring existing assets to the company
- Ongoing personal support from our team
- Basic compliance, including filing the annual confirmation statement
Formation facts
- No notary appointment
- No visit in person
- At least 1 director (residence and nationality do not matter)
- At least 1 member
- Minimum contribution per member £1
- Formation time: 2 days
Discretion
Only the founding members are published in the companies register. Members who join later do not have to be reported to the companies register. The register of persons with significant control must show every member who holds more than 25% of the voting rights in the members' meeting. If each member has one vote, then in a company with fewer than 4 members every member holds more than 25% of the voting rights and must therefore appear in that register.
Opening a bank account
Opening a bank account is not included in the fee. We recommend that you open a business account for your company yourself with one of the usual online banks. For an additional fee, we can support you with opening an account outside the EU at one of the top 5 UK banks.
Tax support
Ongoing tax support for the company is charged according to time spent.
Costs after the first year
The annual cost of managing the company after the first year is £2,600 plus tax support.
Process and next steps
01, Onboarding and KYC: Once you instruct us, you receive our onboarding questionnaire. We analyse your financial situation and work out the best structure.
02, Formation and articles: Formation of the Company Limited by Guarantee in London in 2 days. A lawyer drafts your individual articles of association.
03, Handover and support: Full handover of all documents. Ongoing personal support and help with transferring your assets.
Suitable for
- Wealthy individuals looking for an alternative to a foundation
- People who want to keep 100% control
- Business owners planning their succession
- Clients concerned about seizure or inheritance tax