Company formation in the UK is an extremely relevant service among our clients.
Incorporation in the UK is an important step for entrepreneurs looking to expand their business and take advantage of the benefits this jurisdiction offers. The UK continues to attract the attention of businessmen from all over the world with its stable economy, global reputation and favorable conditions for registering a company.
In this article, we present you with a useful guide to registering a company in the UK from a non-resident's perspective . We will cover the key steps and procedures required to complete the incorporation process, as well as share valuable tips and tricks to help you successfully overcome all requirements and restrictions.
Whether you are a small start-up or a large international company, forming your company in the UK can open up new opportunities for you to grow, attract investment and access global markets. We will cover all important aspects like choosing the right type of company to meeting tax and legal requirements.
Company formation in the UK - how to choose the type of the company: LTD, LLP or LP
Limited Company, LTD – limited liability company
Key aspects of incorporating an LTD in the UK:
- The shareholder's liability is limited to the amount of unpaid shares he owns. In case the company has financial liabilities, the shareholders and directors of the company are not personally liable for the debts of the company with their personal property. This ensures the protection of personal assets and creates a corporate veil between the company and its owners;
- Attractiveness to investors: the legal form of an LTD usually attracts investors because it provides them with clear rights and guarantees. LTD shareholders can easily sell or transfer their shares, which encourages investment and allows the company to raise capital;
- Flexibility in management: LTD is flexible in terms of corporate management, which makes this legal form attractive for various types of businesses. A company may have one or more directors and shareholders, and there are no restrictions on the nationality or residence of directors;
- Corporate Tax: UK LTDs pay corporation tax. The tax rate changes every year and for 2025 is 25%. Previously, corporate tax was at the level of 19%;
- Opening a bank account: It is easier for UK LTDs to open an account with banks and payment systems compared to LPs and LLPs;
- Information about persons with significant control (PSC) is filed with Companies House and is publicly available;
- British LTD companies are required to maintain accounting records, prepare and file financial statements with Companies House and HMRC;
- Share capital: the minimum amount of paid-in capital is one share with a par value of 1 GBP. The standard authorized capital is 1000 GBP. The issue of bearer shares is prohibited.
Read about company formation in Turkey
Limited Liability Partnership, LLP - partnership with limited liability
Key aspects of incorporating an LLP in the UK:
- A Limited Liability Partnership consists of a minimum of two designated partners who, by default, have the same scope of authority to exercise legal representation on behalf of the partnership. Roughly speaking, each partner has the right to sign documents on behalf of the partnership and also manage a bank account without additional powers of attorney. The position of a partner is somewhat similar to the position of a director in the context of business management;
- LLP partners can be both individuals and legal entities , including companies from foreign jurisdictions;
- The LLP is required to prepare and file financial statements with Companies House and HMRC;
- An LLP are required to disclose Person with significant control (PSC) information to the Companies House;
- This structure is considered conditionally "tax-free" , since the responsibility for paying taxes is transferred to the partners themselves in the country of their tax residence. As a general rule, a UK LLP does not pay UK corporation tax;
- When opening an account with a bank or payment system, LLP are considered by the financial institutions as more risky entities if compared to LTDs, but better than LPs. Also note that most banks and payment systems are ready to cooperate with LLP if the partners are individuals - the ultimate beneficial owners. In case the partnership consists of legal entities such structure is not welcome due to the additional compliance.
Limited Partnerhsip, LP
Key aspects of incorporating an LP in the UK:
- An LP consists of at least one general partner and one limited partner . The general partner has the right to sign documents on behalf of the partnership and also manage the bank account without additional powers of attorney. The position of a limited partner does not entitle him to actively participate in the LP's business without an additional power of attorney issued by the general partner;
- The liability of the general partner is not limited . The limited partner is liable up to the amount of its contribution to the capital;
- Partners can be both individuals and legal entities, as well as companies from foreign jurisdictions;
- LP do not file financial statements;
- It is considered a conditionally "tax-free" structure;
- LP can be registered in England, Wales, Northern Ireland and Scotland . Registration of LPs in Scotland has certain specifics (LP with registration in Scotland have gained a bad reputation. Also, such partnerships are required to submit information about persons with significant control to the Companies House register);
- LP partnerships (other than Scotland) do not report Person with significant control (PSC);
- When opening an account for a partnership, an LP should carefully select a bank or payment system, as well as the structure of the partnership. The use of nominee partners - legal entities is not recommended due to problems with account opening.
Read about company formation in Romania
Advantages of forming a company in England
The UK has has been an attractive jurisdiction for doing business for many decades and London is considered as one of the top global business hubs.
Key advantages that make the UK an attractive place to form a company:
- Favorable business climate: The UK has a developed and stable economy, as well as a favorable business climate. Freedom of enterprise, transparency of legislation and an effective justice system create conditions for business development and attracting investments;
- Global Reputation: The UK has an established global reputation as a financial center and place for international business. This is due to the high standards of transparency, reliability and legal protection, which allows entrepreneurs to feel confident in choosing the UK as a jurisdiction for forming their companies;
- Broad access to global markets: Although not a member of the European Union since Brexit, the UK is highly integrated into the EU economy. This provides entrepreneurs with trade opportunities and access to millions of potential customers. In addition, the UK has strong trade and economic ties with other countries around the world;
- Strong judiciary system: The UK is known around the world as the best jurisdiction for litigation. For this reason, the London Court of International Arbitration is chosen as the seat of arbitration for major M&A deals;
- Innovation Environment: The UK is renowned for its innovation potential and active research and development. The country has high standards of education and scientific development, which promotes innovation and the development of new technologies. This makes the UK attractive for technological companies.
In general, the UK offers entrepreneurs a favorable and reliable jurisdiction for doing business. Global reputation, access to global markets, tax advantages and an innovative environment create conditions for the success and growth of new businesses.
Procedure of forming a company in the UK
Registration of a company in the UK is completely remote, and a personal visit is not required. A personal visit may be appropriate only if the set of documents needs to be certified by a notary public and not by a solicitor. This situation may arise when opening a Swiss bank account for a British company.
To start the incorporation procedure, it is necessary to provide a set of documents on the beneficiary, director and shareholder and explain the business activities of the future company.
The procedure for incorporating a company in the UK is as follows:
| Stage 1 | Invoicing and payment; |
| Stage 2 | Preparation by the client of documents on the beneficiary and business. In a normal situation, proof of identity (passport/ID card), proof of address (utility bill) and personal bank statement are sufficient; |
| Stage 3 | Signing registration forms and providing us with high-quality scanned copies; |
| Stage 4 | We carry out all necessary registration actions and form your UK company; |
| Stage 5 | After the company appears on the Companies House website, we make a collation of statutory documents certified by solicitor and apostilled; |
| Stage 6 | We send you the original documents by courier. |
How long does it take to form a company in the UK
From the moment of receiving all the necessary documents and information, company formation in the UK takes 2-4 weeks . The actual time will depend directly on the speed of processing information by the registry of companies.
Person with significant control - who is considered to be the ultimate beneficial owner
A person with significant control (in other words, a beneficiary) is considered as such if any of the criteria below are met:
- owns more than 25% of the shares;
- has more than 25% voting rights;
- has the right to appoint or remove a majority of directors;
- has the right to exercise or already exercises significant influence or control over the company;
- has the right to exercise or already exercises significant control over a trust or company that falls under the definition of the previous criteria.
Annaul renewal of a British company
Every year, at the time specified by the register, a British company must submit a statistical report - Confirmation Statement . Failure to submit this application entails fines and gives a reason to exclude the company from the register. In this case, all property of the company will be recognized as the property of the Kingdom.
It is also necessary to annually renew the lease of the registered office and nominee service, if it is used.
Read about company formation in Hong Kong
Financial Accounts for UK LTD and UK LLP
UK companies and partnerships (other than LPs) are required to prepare and file the following types of reports:
- Annual financial report (Annual Accounts) - is submitted to the Companies House and the deadline for submission & reporting period are set individually for each company. This information is available in the company's profile on the website of Companies House. The report must be submitted no later than 9 months from the date of the end of the reporting period. Late filing entails fines and gives grounds for striking the company off from the register. In some situations, the financial accounts may be subject to an audit, for example, when the balance amount of assets exceeds GBP 5.1 million, and the amount of income was GBP 10.2 million per year. If the company did not conduct any activity, then Dormant Accounts are submitted;
- Tax Return - Filed with the HMRC tax office. The tax return contains information about the taxable income of the company and must be filed no later than 9 months from the date of the end of the reporting period. If a company does not file a tax return on time, HMRC may determine the tax payable at its sole discretion. The company will have to pay tax in the established tax amount, as well as a penalty.
Failure to file financial and tax reports for a considerable amount of time is considered a criminal offense. In this case, the director of the company is responsible.
Where can I open an account for a UK company
Our company has a unique opportunity to open accounts for British companies in classic Spanish banks.
We also recommend paying attention to classic banks in Turkey, China and Gibraltar .
And don't forget about payment systems , which will always welcome British companies.
UK Tax System - Key Changes in corporate tax law in 2023
In 2023, the UK introduced new corporate income tax rates, namely 25% (previously a rate of 19% was used).
Starting in April 2023, companies will pay an increased rate of income tax of 25 percent if they report profits in excess of £250,000. Small businesses with profits up to £50,000 will remain at the same rate of 19%.
All other companies declaring profits of £50,001 and above but below £250,000 will pay corporation tax using a "hybrid" percentage of 26.5%. This means that the income tax rate is gradually increased for companies making profits between the lower and upper limits.
For example: A company with a taxable income of £120,000 will pay 19% on the first £50,000 and then 26.5% on £70,000.
Why you need to contact Taxters to form a company in the UK
Contact Taxters to register your company in the UK and receive the following benefits:
- Experience and professionalism: Taxters is a company with a rich experience in the field of legal and accounting services. Our experts have in-depth knowledge and understanding of the company registration process in the UK. We provide professional support during every step of the procedure to ensure the safety and success of your incorporation;
- Individual approach: We fully understand that each company is unique and has its own characteristics. Therefore, we offer an individual approach to each client. Our team carefully considers your needs and goals in order to provide you with the best solutions and recommendations that meet your needs;
- Comprehensive range of services: Taxters provides a wide range of services related to company formation in the UK. We will help you to choose the optimal legal form, prepare the necessary documents, carry out registration and ensure compliance with tax and legal requirements;
- Transparency and reliability: We value transparency in customer relationships. All our services and rates are clearly and understandably described, and we provide transparent working conditions. We also guarantee confidentiality and privacy protection of your data;
- Customer-centric approach: Our goal is your success. We strive to meet your needs and expectations by providing high quality services and personalized attention to each client. We are ready to answer your questions, provide advice and support after the registration of the company.
When working with Taxters, you get a reliable and experienced partner in registering a company in the UK. We do our best to ensure that your business runs smoothly and successfully.
Just leave a request and we will handle the rest.
By: Pavlo Dubynskyi, May 2023. Information updated in 2025
FAQ
Can the British company be formed remotely?
Yes, we will help you incorporate your company in the UK remotely
Is United Kingdom considered as suitable jurisdiction for IT business?
Yes, UK is one of the top jurisdictions to form a company, inclduing for IT business
Can I use nominee services when forming a company in England?
Yes, there is a legal framework for nominee services in the UK. Thus, you can legally receive nominee directorm secretary or partner services. Though, we do not reffer to "Nominee UBO" services, which are illegal.
Can I open a bank account in the United Kingdom upon incorporation?
No, registration of a company in England does not grant you an opportunity of opening a local bank account unless you are resident of the UK.
