Company Formation in United Kingdom
Last updated: September 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 (the "Ltd", the UK equivalent of an LLC) 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 |
| Local company form | Ltd (private company limited by shares), equivalent of an LLC / private limited company |
| 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.
If you want that low entry cost inside the EU instead, our guide to the cheapest countries to form a company in Europe shows which member states come closest.
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).
What does Ltd mean?
Ltd is short for "Limited", the suffix that section 59 of the Companies Act 2006 requires at the end of the name of every private company limited by shares. It tells counterparties that shareholders' liability stops at the unpaid value of their shares. It is the UK equivalent of an LLC, used by SMEs, holding companies and non-resident founders.
Ltd or Limited: is there a difference?
No. "Limited" and "Ltd" are the same suffix under section 59 of the Companies Act 2006, and the company may use either form on invoices, contracts and its website. The registered name at Companies House fixes one spelling. A company registered in Wales may use the Welsh forms "Cyfyngedig" or "Cyf" instead.
Who counts as a person with significant control (PSC)?
A PSC is an individual who holds more than 25% of the shares or voting rights, can appoint or remove a majority of the board, or otherwise exercises significant influence or control. PSCs are declared on the IN01 at incorporation, confirmed at every confirmation statement and, from autumn 2026, verified at Companies House like directors.
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. As your formation agent in the UK (an Authorised Corporate Service Provider), we file every step below on your behalf. The registry is Companies House, the registrar of companies for England and Wales, Scotland and Northern Ireland; its Web Incorporation Service accepts filings 24/7.
- 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. There is no cap on the number of directors or shareholders in a Ltd; each additional person simply adds one KYC pack and one identity check.
- 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.
UK company formation requirements
Companies House registers a Ltd on six statutory conditions. A director aged 16 or over (section 157 of the Companies Act 2006). At least one shareholder. A registered office and registered email in the jurisdiction of registration. A memorandum and articles. A PSC statement. Since 4 March 2024, a statement that the company is formed for lawful purposes.
Can a non-resident form a UK Ltd company?
Yes. UK company law requires no UK-resident director or shareholder, so a non-resident can hold both roles. Two things are non-negotiable. The first is a registered office address in the UK, which we supply in central London. The second is Companies House identity verification for every director and PSC, completed remotely through us as an ACSP with a passport scan and live selfie.
What is a UK company registration number?
The company registration number (CRN) is the eight-character number on the Certificate of Incorporation: eight digits in England and Wales, an SC or NI prefix plus six digits in Scotland and Northern Ireland. It never changes. Anyone can check it free on the Companies House "Find and update company information" service. HMRC issues two separate numbers later: the ten-digit Unique Taxpayer Reference and the VAT number.
What documents do you receive after incorporation?
Companies House emails the Certificate of Incorporation showing the name, CRN and date of incorporation. We add the Memorandum and Articles of Association, share certificates, the first board minutes and the statutory registers of members, directors and PSCs. HMRC posts the Unique Taxpayer Reference to the registered office within about two weeks, which is the trigger for Corporation Tax registration.
What the formation agent does, and what you can file yourself
An ACSP is a firm registered with Companies House under the Economic Crime and Corporate Transparency Act 2023 to verify identities and file for clients. As one, we run the WebCheck name search, draft the memorandum and articles, verify each director and PSC, file the IN01 and supply the registered office and registered email. We then register the company for Corporation Tax, PAYE and VAT with HMRC, introduce a bank or EMI and hand the statutory registers to your accountant. Self-filers use the GOV.UK "Set up a private limited company" service and keep the six-character authentication code for later WebFiling. For a non-resident the catch is identity verification: GOV.UK One Login needs a biometric passport read through its app, otherwise an ACSP check is the route.
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.
Are there hidden costs when registering a UK company?
Not in our packages. Every UK company does carry four recurring items that price-led offers leave out: the annual confirmation statement fee to Companies House, the registered office renewal, the annual accounts, and the Corporation Tax return.
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% (rate applicable in 2026) 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.
Every provider asks for the same file. Certificate of Incorporation, memorandum and articles, passport and proof of address for each director and PSC, a business description matching the SIC code, and evidence of trade. A bank holds deposits under the Financial Services Compensation Scheme; an EMI is FCA-authorised under the Electronic Money Regulations 2011 and safeguards client funds in segregated accounts instead.
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.
Compliance and Reporting Obligations
A UK Ltd answers to Companies House for corporate filings and to HMRC for tax. The calendar below is what happens after you have registered.
| Obligation | Deadline or rule |
|---|---|
| Confirmation statement (CS01) | At least once every 12 months, within 14 days of the review date; confirms shareholders, PSCs, SIC code and registered email address |
| Annual accounts | Filed at Companies House within 9 months of the accounting reference date (first accounts within 21 months of incorporation); software-only filing and profit and loss disclosure for small and micro companies from 1 April 2027 |
| Corporation Tax | CT600 return within 12 months of the accounting period end; tax paid within 9 months and 1 day |
| VAT | Quarterly returns through Making Tax Digital once registered |
| Registered office and email | An appropriate physical address (no PO box) and a registered email address, both required since 4 March 2024 under the Economic Crime and Corporate Transparency Act 2023 |
| Identity verification | Every director and PSC; existing directors by 18 November 2026 |
| Changes of directors | Forms AP01 and TM01 filed within 14 days |
| Statutory registers | Registers of members, directors, directors' residential addresses and PSCs kept at the registered office or a SAIL address | | Accounting records | Kept for 3 years by a private company under section 388 of the Companies Act 2006 |
Late accounts attract an automatic civil penalty, doubled if repeated the next year. A missed confirmation statement leads Companies House to strike the company off under section 1000 of the Companies Act.
Directors' legal and financial responsibilities
Sections 171 to 177 of the Companies Act 2006 codify seven general duties. They run from acting within powers and promoting the company's success to avoiding conflicts, declining third-party benefits and declaring interests in proposed transactions. Once directors know insolvency cannot be avoided they must stop trading, or face personal liability for wrongful trading under section 214 of the Insolvency Act 1986. Breach can bring disqualification for up to 15 years under the Company Directors Disqualification Act 1986.
Employing staff: PAYE, National Insurance and pensions
A UK Ltd that hires registers as an employer with HMRC before the first payday and reports each payment through Real Time Information on or before payday. Employer Class 1 National Insurance runs at 15% on earnings above the £5,000 secondary threshold (rates from 6 April 2025). The £10,500 Employment Allowance offsets part of that tax. Automatic enrolment into a workplace pension takes 8% of qualifying earnings, at least 3% from the employer. A written statement of particulars is due on day one under the Employment Rights Act 1996. Hiring from outside the UK needs a Home Office sponsor licence.
Forming a UK Company as a Non-Resident
A non-resident can be the sole director and sole shareholder of a UK Ltd. The Companies Act 2006 sets no residency or nationality condition for either role, and no nominee is required. Foreign shareholders, individual or corporate, are recorded at Companies House like any other, and UK company formation for European residents follows the same route as for founders from outside Europe.
Two UK-specific items apply, as noted above. You need a registered office address in the UK, which we provide in central London. Every director and PSC passes Companies House identity verification, run remotely by us as an ACSP. The KYC pack is the one listed under Required Documents: passport or EU/EEA biometric ID and proof of address within three months, with no apostille for English-language documents. No visit to the UK is needed.
Banking for a non-resident runs through the digital providers. Wise Business, Tide and Airwallex onboard non-resident-controlled UK Ltds remotely. Revolut Business and Starling need a director with an EEA, UK or Swiss address, and the high-street banks rarely open cold non-resident accounts. No provider guarantees an account before KYC, so we screen the profile first.
Founders from India, Pakistan and the UAE need only a passport and an English-language proof of address: no apostille, no translation. UK residents who need a US LLC instead of a UK Ltd will find the Delaware and Wyoming routes on our USA page.
Owning a UK Ltd confers no immigration status. A non-resident director may attend board meetings and sign contracts on a Standard Visitor visa, but may not work in the UK for the company. Founders who want to relocate use the Innovator Founder visa, which requires an endorsing body to approve the business as innovative, viable and scalable before the Home Office application. We are formation agents, not OISC-regulated immigration advisers, and refer visa questions to specialists.
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 info@companyformation24.com 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.
Looking for a faster route? Our sister brand offers ready-made UK limited company, pre-incorporated and transferable in days.
