Company Formation in United Kingdom

Last updated: April 2026.

The United Kingdom forms more new companies per year than any other European jurisdiction. In the year to March 2026, Companies House registered just over 850,000 new entities — most of them private limited companies set up in under 24 hours through the online incorporation service. There is no minimum share capital and no residency requirement for directors. From autumn 2026 every director also has to verify their identity, which is the single biggest change to UK formation in a decade and the main reason most non-resident incorporations now go through an authorised corporate service provider.

We form UK Ltds end to end: name reservation, drafting, ID verification, filing, tax registration, and bank account introduction. Fixed price, dedicated manager, certificate to your inbox the next business day.

Quick facts	Value
Corporation tax (main rate)	25% on profits over £250,000
Corporation tax (small profits)	19% on profits up to £50,000
VAT (standard)	20% — registration threshold £90,000
Minimum share capital (Ltd)	£1 nominal — no statutory minimum
Minimum directors / shareholders	1 director, 1 shareholder (can be the same person)
Residency requirement	None
Standard formation time	24 hours online (same-day option available before 3pm)
Government fees	Included in our packages
Language of filings	English
Currency	British Pound (GBP)

Why Form a Company in the UK

The UK is still the European Union's largest formation market by raw volume, even outside the bloc. Three reasons keep it that way.

The legal framework is mature. The Companies Act 2006 is one of the most-cited corporate statutes in the world. UK case law on directors' duties, shareholder remedies, and group structures is referenced by courts in Singapore, Hong Kong, the BVI, and most of the Commonwealth. A UK limited company is a legal product that international counterparties recognise without translation.

Speed is real. Online incorporation takes less than ten minutes to file and is approved within 24 hours — often in two or three. Same-day service exists for a modest expediting premium. No other major European jurisdiction matches that consistently.

No residency or capital barriers. A non-resident can be the sole director and sole shareholder of a UK Ltd from day one. The minimum share capital is £1 nominal — there is no statutory minimum and no paid-up requirement. Compared with Germany's €25,000 GmbH minimum or Austria's €35,000, the UK is a frictionless choice for first-time founders.

The trade-off post-Brexit is that a UK company is no longer an EU company. If you need EU passporting for financial services, free movement of services, or the Parent-Subsidiary Directive, the UK doesn't deliver any more — Cyprus, Ireland, the Netherlands, or Estonia do.

Company Types Available in the UK

UK company law gives you five corporate forms in practice. Most cf24 clients use the first.

Private Limited Company ("Ltd")

The default vehicle for SMEs, holding companies, e-commerce businesses, SaaS, consulting, and most non-resident incorporations. Limited liability up to the value of the shares. Minimum one director and one shareholder, who can be the same person and can be a non-resident. Annual filings: confirmation statement and accounts. Audit only required above the small-company thresholds (currently turnover £15m, balance sheet £7.5m, 50 employees — two of three).

Public Limited Company ("PLC")

For listing or large unlisted businesses. Minimum issued share capital £50,000, of which £12,500 must be paid up. Two directors, one company secretary, and the obligation to file under the more onerous reporting regime. Most cf24 clients do not need a PLC; if you are not raising public capital, a Ltd is the right starting point.

Limited Liability Partnership ("LLP")

A hybrid: partnership for tax (members are taxed personally on their share of profits, no corporation tax at the entity level), corporate for liability. Standard structure for UK law firms, accountants, and consultancies. Minimum two members.

Limited Partnership ("LP")

General partner with unlimited liability plus limited partners with capped exposure. Used almost exclusively for fund structures (private equity, venture capital, real estate funds). Scottish LPs are a related variant with separate legal personality. Specialist use case.

UK Establishment (Branch)

A foreign company operating in the UK without forming a separate UK entity. Requires registration with Companies House but is not a separate legal person. Useful when you specifically need the parent's balance sheet to face counterparties; rarely the right choice for a new venture.

Form	Min capital	Liability	Tax treatment	Common use
Ltd	£1 nominal	Limited	Corporation tax	SMEs, holdings, e-commerce
PLC	£50,000	Limited	Corporation tax	Listed cos, large unlisted
LLP	None	Limited	Members taxed personally	Professional services
LP	None (per partner)	Mixed	Members taxed personally	Funds, investment vehicles
UK Establishment	n/a	Parent's	Parent's home tax + UK on UK source	Foreign branch presence

Step-by-Step Formation Process

The end-to-end timeline assumes a private limited company with a non-resident director, formed online.

Name check and reservation. We run the proposed name through the Companies House WebCheck system to confirm availability and absence of trademarked terms (e.g. "bank", "royal", "chartered" need approval). Two or three alternatives are normal.

Documentation pack. We draft the Memorandum of Association, Articles of Association (typically the model articles with bespoke variations), share allocation schedule, and PSC declarations. You provide passport plus address proof for each director, shareholder, and Person with Significant Control.

Identity verification. From autumn 2026 every director and PSC must verify identity through GOV.UK One Login or an Authorised Corporate Service Provider. We are an ACSP. The verification involves an ID document scan and a live selfie; for non-residents this is done remotely and takes about ten minutes.

Filing Form IN01. We submit the incorporation application to the Companies House Web Incorporation Service. Standard processing is 24 hours. Same-day service is available if filed before 3pm UK time, for an additional government premium that we include in expedited packages.

Certificate of Incorporation. Issued by Companies House upon approval, delivered electronically. From this moment your company exists as a legal person.

Tax and post-incorporation registrations. Corporation Tax registration with HMRC is automatic for most cases (UTR arrives within two weeks). Where additional registrations are needed — VAT (mandatory above £90,000 turnover, voluntary below), PAYE for employers, EORI for international trade — we handle them in parallel with bank account opening.

The realistic lead time from first contact to operating company with bank account is 5–10 business days. The certificate itself lands on day 1; the bank typically takes the longest.

Required Documents

For each director, shareholder, and PSC we need:

Government-issued photo ID (passport preferred, biometric national ID accepted from EU/EEA citizens)
Proof of address dated within the last three months — utility bill, bank statement, or government letter
Date of birth, nationality, occupation, and current residential address
For corporate shareholders: certificate of incorporation, register of directors, confirmation of UBO

You also confirm the registered office address (we provide one in central London if you do not have your own UK address), the share structure, and the SIC code describing the business activity.

Apostille or certified translation is not required for UK incorporation in most cases — Companies House accepts foreign documents in English directly, and ID verification is done electronically.

Costs and Timeline

UK formation is fast and procedurally light. The cost depends on what services you bundle — registered office, ID verification through an ACSP, bank account introduction, accounting setup, annual confirmation filings, and registered agent renewal.

Our packages cover the full incorporation, registered office for year one, ID verification for up to two directors, all government fees, certificate pack, and an introduction to a UK business bank or EMI. Contact us for a fixed-price quote — there are no hourly fees, no government surcharges added later, and no extras invoiced after the work is done.

Typical timeline from KYC clearance:

Day	Milestone
0	Engagement, KYC submitted
1	KYC cleared, documents drafted, ID verification scheduled
2	ID verification complete, IN01 filed
3	Certificate of Incorporation issued
5–10	Bank account opened (variable per provider)

Tax Overview for UK Companies

Corporation tax is the only headline tax on company profits.

Main rate: 25% for profits above £250,000 from 1 April 2026. Small profits rate: 19% for profits up to £50,000. Companies with profits between £50,000 and £250,000 pay tax under marginal relief — effectively a sliding rate.

VAT: 20% standard rate, with a registration threshold of £90,000 in taxable turnover (raised from £85,000 in April 2024). Reduced rates of 5% and 0% apply to specific goods and services.

Withholding tax is generally light. The UK does not withhold tax on dividends paid to non-residents, regardless of treaty status — a meaningful advantage for holding-company structures. Interest and royalty payments to non-residents attract 20% WHT, reduced or eliminated under most of the UK's 130+ double-tax treaties.

Capital gains on the sale of subsidiaries are exempt under the Substantial Shareholding Exemption where the seller has held at least 10% for 12 months and the target is a trading company or part of a trading group. This makes the UK an attractive holding location for international groups disposing of operating subsidiaries.

No corporate tax on capital raised through share issuance. UK stamp duty on share transfers is 0.5% — much lower than equivalents in continental Europe.

The country has full DTT coverage with the EU, US, China, India, the Gulf states, most of Latin America, Australia, and most of Africa. R&D tax credits are available — claims average 25–33% recovery on qualifying spend for SMEs and 13% credit for large companies under the merged scheme effective from April 2024.

Banking for UK Companies

The UK business banking market split in two over the last decade. Traditional banks (Barclays, HSBC, Lloyds, NatWest) still hold most balances but rarely open accounts for non-resident-controlled entities without an existing personal banking relationship. Digital providers and EMIs have absorbed most new-incorporation account openings.

Wise Business is our usual first introduction for non-resident-owned UK Ltds. Fully remote onboarding, multi-currency balances (GBP, EUR, USD plus 50+ others), transparent FX, and SWIFT/SEPA in and out. No requirement for a UK-resident director or director with a UK home address.

Tide is fast — sign-up takes minutes, no credit check during onboarding, sterling business account with Mastercard. Some restrictions on certain non-EEA director profiles; we screen before introducing.

Airwallex is increasingly competitive for cross-border-heavy businesses, with strong compliance approval rates for non-resident directors and competitive FX.

Revolut Business works for UK Ltds where at least one director has an EEA, UK, or Swiss residential address. Multi-currency, integrated with the broader Revolut group product set.

Starling Business requires at least one EEA or UK-resident director plus proof of UK address — a good fit for hybrid teams or UK-resident founders.

For traditional bank introductions, where the structure justifies it, we can arrange meetings with Barclays International, HSBC International, or Cater Allen — typically reserved for clients with >£250k operating balances or international banking package eligibility.

Nominee Director Services in the UK

The UK permits nominee directors. Many holding-company structures and privacy-sensitive arrangements use them. Two factors matter for current planning.

The PSC (Persons with Significant Control) regime applies regardless. A nominee director does not hide the ultimate beneficial owner; the PSC must be disclosed to Companies House and appears on the public register. If the structure is designed around hiding ownership from public records, a nominee director alone will not achieve that under UK law.

Identity verification (autumn 2026) applies to nominees. Every director, nominee or not, must complete ID verification with Companies House. The nominee's identity is verified, and the nominee's information sits on the public record — including their home address (a director's "service address" can be registered, but the PSC's residential address is held by Companies House under restricted access).

We provide nominee director services where the structure is legitimate, KYC-compliant, and disclosed appropriately. Indemnity arrangements, signed nominee declarations, and a service-level agreement covering board meetings and document signing are standard. We do not provide nominee services where the intent is to obscure beneficial ownership from regulators or counterparties.

If your timeline is urgent and you need a UK Ltd already incorporated, our sister brand offers ready-made UK limited companies — pre-registered, dormant, and ready for immediate transfer. For most new business, however, fresh incorporation through this service is faster than the equivalent shelf-company transfer for a UK Ltd, given the 24-hour registration timeline.

Frequently Asked Questions

How long does it take to register a UK limited company?

Online incorporation through Companies House is approved in 24 hours under standard service. Same-day approval is available if you file before 3pm UK time, for a government premium we include in expedited packages. Including KYC, ID verification, drafting, and bank account opening, our typical end-to-end timeline is 5 to 10 business days, with the certificate itself in hand on day 2 or 3.

Can a non-UK resident set up a UK company?

Yes. UK company law imposes no residency requirement on directors or shareholders. A non-resident can be the sole director and sole shareholder of a UK Ltd. From autumn 2026, every director must complete identity verification through GOV.UK One Login or an authorised corporate service provider — done remotely with passport and live selfie.

What is the minimum share capital for a UK Ltd?

There is no statutory minimum share capital for a private limited company. A nominal £1 share is sufficient and is the standard for new incorporations. Public Limited Companies (PLCs) require a minimum issued share capital of £50,000, with at least £12,500 paid up.

Do I need a UK address to register a company?

You need a registered office address in the UK — a physical UK address where Companies House and HMRC will send statutory mail. It does not have to be your operating address and does not need to be a director's home. We provide registered office service in central London as part of standard formation packages.

What's the corporation tax rate in the UK?

The main rate is 25% on profits above £250,000. The small profits rate is 19% on profits up to £50,000. Companies with profits between those thresholds pay an effective rate under marginal relief. These rates apply for the financial year beginning 1 April 2026 and have been confirmed by HMRC for 2026/27.

Do I need to verify my identity to register a UK company?

Yes — from autumn 2026 all directors and Persons with Significant Control must verify identity with Companies House through GOV.UK One Login or an Authorised Corporate Service Provider (ACSP). For non-residents this is done remotely. Existing directors appointed before 18 November 2025 must complete verification by 18 November 2026 or face civil penalties up to £5,000 and criminal liability after the deadline.

Can I open a UK business bank account from abroad?

Yes, through digital providers. Wise Business, Tide, and Airwallex onboard non-resident-controlled UK Ltds remotely without requiring a UK-resident director. Revolut Business and Starling require at least one director with an EEA, UK, or Swiss address. Traditional high-street banks (Barclays, HSBC, Lloyds, NatWest) generally require an established personal banking relationship and rarely open accounts for cold-application non-resident structures.

Get Started — Form Your UK Company

A fixed-price quote in 60 seconds. Certificate of Incorporation in 24 hours from KYC clearance. Bank account introduction included. Identity verification handled by our authorised corporate service provider — no GOV.UK One Login setup required from you.

Call +48 2222 5 2222 or email [email protected] to start. Most UK formations are complete and operating with a bank account within 10 business days.

Content prepared by Anna Modlinska, Company Formation Specialist. Approved by Tomasz Bielski, Managing Director.