United Kingdom at a glance
United Kingdom is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in United Kingdom
- Private limited company (Ltd) The most common structure: a separate legal entity limited by shares, needing at least one director (16 or over) and one shareholder, with no minimum share capital.
- LLP (limited liability partnership) A partnership with limited liability for its members; profits are taxed in the members' hands. Popular with professional firms.
- PLC (public limited company) Can offer shares to the public and list on an exchange. Requires at least GBP 50,000 of issued share capital (25% paid up) and two directors.
| Corporate tax | The main rate of corporation tax is 25% on profits above GBP 250,000. A reduced 19% small-profits rate applies to profits of GBP 50,000 or less, with Marginal Relief tapering the rate in between. These rates are confirmed for the 2025 to 2026 financial year. |
|---|---|
| VAT rate | Standard VAT is 20%, with reduced 5% and zero rates on specific categories. Registration is required once taxable turnover exceeds GBP 90,000 in a rolling 12-month period. |
| Dividends & payroll taxes | The UK levies no withholding on dividends; resident individuals pay dividend tax of 8.75% to 39.35% above a small allowance. PAYE income tax tops at 45%, and employer National Insurance adds 15%. Corporation tax itself runs 19% to 25% by profit level. |
| Minimum share capital | No minimum share capital for a private limited company; companies are typically formed with a token GBP 1 share. A PLC, by contrast, needs at least GBP 50,000 of issued capital with 25% paid up. |
| Setup time | Online registration with Companies House is usually completed within 24 hours. Postal applications take roughly 8 to 10 days. |
| Remote setup | Yes. A company can be formed fully online through Companies House for a GBP 100 fee, with the certificate issued digitally. Since 18 November 2025, new directors and people with significant control must verify their identity, which can be done online. |
| Director / residency | At least one director (16 or over) is required and need not live in the UK, but the company must keep a UK registered office address. At least one shareholder is required and can be the same person. Identity verification at Companies House is mandatory since November 2025. |
| Banking options | Options range from high-street banks (Barclays, HSBC, Lloyds, NatWest) to digital business accounts (Tide, Starling, Revolut Business, Wise Business). High-street banks often require UK residency and in-person checks, while fintechs are more accessible to non-resident founders. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Since Brexit the UK is no longer in the EU, so a UK limited company is not an EU company and does not get EU single-market freedoms. It remains a common-law, English-language jurisdiction with fast, low-cost online incorporation. From 18 November 2025, identity verification at Companies House is compulsory for new directors and people with significant control.
How to register a company in United Kingdom
Step by step, this is how a United Kingdom formation actually runs:
- Pick the name and structure. A private company limited by shares with one director-shareholder is the standard; Companies House checks name conflicts instantly.
- File online with Companies House. The GBP 50 online incorporation usually completes within 24 hours, with the certificate issued digitally.
- Set the registered office and email. You need a UK registered office address (providers charge modest annual fees) and a registered email under the 2024 rules.
- Register for corporation tax. HMRC registration follows incorporation; add VAT once past the GBP 90,000 threshold and PAYE if you employ.
- Open banking. Digital accounts (Tide, Starling, Wise, Revolut Business) onboard non-residents far faster than high-street banks.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in United Kingdom costs
Incorporation is GBP 50 online and the annual confirmation statement GBP 34, among the lowest official fees anywhere. A registered-office service typically costs GBP 50 to 200 a year. Accounting for a small limited company runs about GBP 40 to 150 a month, and identity verification for directors (rolling out under the 2024 Act) is inexpensive.
Form your UK company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for United Kingdom, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in United Kingdom
Founders from outside the EU can own and run a UK company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for United Kingdom up front, so there are no surprises.
The UK fits founders who want the fastest, cheapest credible company in Europe with effortless remote setup, especially for global clients. Remember it is not an EU company: no EU VAT number, no single-market rights, and it does not position you for EU Inc. Many founders pair a UK Ltd with an EU entity later.
After registration: what United Kingdom expects each year
Each year you file a confirmation statement and annual accounts with Companies House, plus a CT600 corporation tax return to HMRC within 12 months of year end (tax paid within 9 months and a day). Small companies file abbreviated accounts and skip audit. Miss Companies House deadlines and automatic penalties apply.
United Kingdom and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a UK company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh United Kingdom against other countries, see company formation in Europe.