--- canonical: "https://euincnow.com/company-formation-uk" dateModified: "2026-10-11" --- # Company Formation in United Kingdom: Types, Taxes and Costs Forming a company in the United Kingdom takes about 24 hours online through Companies House, which registers a private limited company (Ltd) for a GBP 100 fee with no minimum share capital (commonly GBP 1). Corporation tax is 25% on profits above GBP 250,000 (a 19% small-profits rate applies under GBP 50,000), and VAT is 20% above a GBP 90,000 turnover threshold. Since Brexit the UK is no longer in the EU, so a UK Ltd is not an EU company, although a director can be non-resident as long as the company keeps a UK registered office. ## United Kingdom at a glance - United Kingdom is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### 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. * Company formation in United Kingdom: key facts (last reviewed July 2026) - 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 at 10.75%, 35.75% or 39.35% above the dividend allowance in the 2026 to 2027 tax year. 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. * 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: 1. **Pick the name and structure.** A private company limited by shares with one director-shareholder is the standard; Companies House checks name conflicts instantly. 2. **File online with Companies House.** The GBP 100 online incorporation usually completes within 24 hours, with the certificate issued digitally. 3. **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. 4. **Register for corporation tax.** HMRC registration follows incorporation; add VAT once past the GBP 90,000 threshold and PAYE if you employ. 5. **Open banking.** Digital accounts (Tide, Starling, Wise, Revolut Business) onboard non-residents far faster than high-street banks. ## What company formation in United Kingdom costs - Incorporation is GBP 100 online and the digital confirmation statement GBP 50, 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. ## Who can form a company in United Kingdom - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in United Kingdom. The director and residency information above identifies the main formation conditions to review. - 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 add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. United Kingdom is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. ### Topics checked - These dates apply to the named topics. Other figures and indicative service prices have separate review needs. * **Online incorporation and digital confirmation statement fees** Checked 11 October 2026. [Source 1][1] * **Individual dividend rates for 2026/27** Checked 11 October 2026. [Source 1][2] ### Reference links - [gov.uk][3] - [gov.uk][4] - [gov.uk][1] - [gov.uk][2] ## Frequently asked questions ### Can a foreigner open a company in United Kingdom? - 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. ### How long does company formation in United Kingdom take? - Online registration with Companies House is usually completed within 24 hours. Postal applications take roughly 8 to 10 days. ### What corporate tax does a company in United Kingdom pay? - The headline summary is 25% (19% small), with standard VAT of 20%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in United Kingdom remotely? - 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. ## Source URLs [1]: https://www.gov.uk/government/news/companies-house-fees-are-changing-from-1-february-2026 [2]: https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past [3]: https://www.gov.uk/corporation-tax-rates [4]: https://www.gov.uk/limited-company-formation/register-your-company