How to pay less Tax for Online Traders

Online traders want to make as much money as possible from the products they sell, therefore tax can be a problem.

Companies999 however are here to reveal a secret money making solution for Amazon and eBay sellers.

You have to sell in the UK.

If you want to take your business to the next level, you need to start selling across Europe, most especially in the UK.

The simplest answer to sell your products online in the UK is to set up a Limited Company to trade.

One of the many advantages in doing so is the corporation tax is extremely low, just 19% the cheapest in Europe in fact.

This will therefore see much less of your company profits cut, and in turn enable you to receive more money.

Reasons to set up a company in UK

  • The process of starting a company is made as simple as possible in UK.
  • United Kingdom is rated as one of the top five countries in the world to business.
  • Many entrepreneurs around the world who require a global presence for their company start in the UK.
  • It is known as the Financial Capital of the world, essentially the best place to start your company.
  • You can start a limited company in the UK from anywhere in the world, even if you are a non-resident.
  • The UK is a powerful and popular market for business owners to trade, global entrepreneurs are welcome.

What online sellers require?

Unlike the demands of many other countries, UK companies can be started with very little requirements:

  • At least, one director and one shareholder (one person can be both)
  • Director should at least be 16 years old
  • A company address in UK, which is called Registered Office
  • A minimum shareholding of 1, no maximum shareholding
  • Share capital can be as low as £0.01 (1 pence)
  • No visits to UK required, all done online

How online sellers can start?

You can do it all online. There are a couple of ways how this can be done. You can either do it on the government website or through an agent.

However, if you are a non-UK resident, then you will not be allowed to do it with the government. The government website requires to validate the following details:

  • Your identity and address through credit reference agency
  • A UK address, which might not be possible if you are a non-resident

A UK address is required so that all the company documents will be sent to that address. If you are giving a random address then there is no way you can get the letters and finally end up not using the company.

Moreover, giving a false address to start a company is a crime. You will be prosecuted and be banned from Directorship in UK & EU.

How to get around this problem and do it legally?

The only way to get around this is to incorporate your company through an authorised company formation agent, just like us.

Benefits of incorporating your company through us:

  • Quick and easy company registration process
  • Perfect package specially designed for Non-UK residents
  • You can incorporate your company in just 2 hours’ time
  • We will help you to open your business bank account in the UK
  • If required, we can provide VAT registration for your company
  • Prestigious address to be used as your company registered office
  • Keep your privacy safe (by hiding your address from public registers)
  • All your mails are scanned and sent to you on the same day
  • We help you with your important accountancy requirements
  • We help with business essential services and creating a presence in UK
  • We provide nominee services to allow an individual to represent your company in UK
  • You will be provided with a login for our website to download all your company documents

And much more.

Business Bank Account

We partner with various banks in the UK to provide business bank accounts for new businesses.

For our customers, we ensure online sellers receive customer transactions and so provide banking services through our partners.

  • No UK visit required
  • Business account opened in a matter of minutes
  • Free banking (subject to banking terms and conditions)

Distance Selling

For online sellers there is a distance selling procedure with rules and regulations you must follow. If you don’t follow the rules you could be given an unlimited fine or a prison sentence. 

For more information about online and distance selling, please click here.

We also provide a Business Consultation to fulfill all your business needs.

For any assistance contact Companies999, we will be happy to help you!

VAT Advice for Online Traders

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