As the EU welcomes ten new members in its biggest enlargement ever, a significant increase in the number of UK company formations is predicted by Phil Vibrans, Managing Director of Company Registrations Online.
Foreign entities and individuals often incorporate companies locally to improve access to Western European markets. The 1st May enlargement creates a market of over 340 million inhabitants – the largest economic area in the world.
“There are compelling reasons for acceding countries to look to the UK as a base for new limited companies and subsidiaries, regardless of in which EU countries they intend to carry out business,” said Phil. “In the UK it is possible to set up a new company within 24 hours. In comparison, Spain hopes to reduce incorporation time from three months to six weeks by 2006,” he added.
“The cost of company formations in the UK is also significantly lower, making it very attractive when compared to other European countries. Furthermore, many EU Member States stipulate high levels of issued capital, which preclude incorporation by small firms and individuals. In the UK, there is effectively no minimum requirement for authorised or issued capital. A company may be established with capital of just one share,” Phil commented.
Incorporation in the UK is open to everybody, regardless of citizenship. Other than the requirement for a UK registered office, individuals and entities domiciled anywhere in the world may be shareholders and officers of a UK company.
“There is no doubt that enlargement will promote stability, stimulate further investment and raise prosperity and it’s clear that these benefits won’t be limited to new member countries,” said Phil. “The creation of a market of this size presents a major opportunity, not just for formation agents, but for the business services sector and indeed the UK economy as a whole.”
Kieron James is Sales and Marketing Director at Company
Registrations Online. Prior to joining CRO, he worked in senior
management for VeriSign in Latin America and Europe. Kieron has
experience of developing distribution networks, branding,
growth and profitability initiatives.
Further information about CRO may be found at
http://www.companyregistrations.co.uk or via email from
kieron.james@companyregistrations.com
