Europe · Company formation
Company formation in United Kingdom
This works well as a credible trading or holding vehicle, with broad treaty access and global market recognition.
At a glance
- Entity
- Private company limited by shares (Ltd)
- Corporate tax
- 25% main rate on profits over GBP 250,000; 19% small-profits rate under GBP 50,000, with marginal relief (3/200) in between — unchanged for FY2026
- Incorporation time
- ~24 hours online; same-day incorporation available via software for GBP 156
- Minimum capital
- None (typically GBP 1 nominal per share)
- Resident director
- Not required; at least one director must be a natural person aged 16+, with no residency or nationality condition
- Audit
- Small-company audit exemption where two of three met: turnover up to GBP 15m, balance sheet up to GBP 7.5m, 50 or fewer employees (thresholds raised for periods from 6 April 2025)
- Remote set-up
- Yes, fully remote — but every director and PSC must first complete Companies House identity verification (mandatory since 18 November 2025)
- Government fee
- GBP 100 (Companies House, online) as of 2026 — doubled from GBP 50 on 1 February 2026
- Best for
- This works well as a credible trading or holding vehicle, with broad treaty access and global market recognition.
The process
- Confirm the proposed name is available and not too similar to an existing registration on the Companies House index
- Complete identity verification for every director and person with significant control (PSC) to obtain their Companies House personal codes
- Prepare the incorporation pack: memorandum and articles of association, at least one director and shareholder, PSC details, a UK registered office and a SIC code
- File the IN01 application online with Companies House and pay the GBP 100 fee; the certificate of incorporation usually issues within 24 hours
- Register for Corporation Tax with HMRC within three months of trading, and for VAT once taxable turnover exceeds (or is expected to exceed) GBP 90,000
- Open a UK business bank account
What can go wrong
- Identity verification is now unavoidable: since 18 November 2025 every director and PSC must verify with Companies House before they can incorporate or file — allow time to obtain personal codes, and note fines up to GBP 5,000 for non-compliance.
- Fees moved in 2026: online incorporation doubled to GBP 100 on 1 February 2026 and the annual confirmation statement rose to GBP 50 — confirm current figures before budgeting.
- No privacy: director and PSC names and the registered office sit on a fully public register; the UK sells credibility, not confidentiality.
- Substance and banking: a UK company remains UK tax-resident on worldwide profits even if controlled from abroad, opening a UK business bank account without local presence is frequently slow, and foreign owners should check home-country CFC exposure.
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Form a company in United Kingdom?
One named person on the file, an honest read on tax and substance, and a fixed quote before you commit.