What is company formation in the UK?

Company formation (or incorporation) in the UK is the process of registering a legal entity with Companies House so it becomes a limited company (e.g. Ltd, LLP or by guarantee). It involves submitting documents (incorporation certificate, articles) and choosing directors, shareholders, a company name, and a UK registered office.

What types of companies can I form in the UK?

The main types are: Private Company Limited by Shares (Ltd), Private Company Limited by Guarantee (often for non-profits), Limited Liability Partnership (LLP), and Community Interest Company (CIC). Each has different legal, tax and ownership structures.

How much does it cost to register a limited company in the UK?

The mandatory filing fee to Companies House is currently around £50 (for online incorporation). Additional costs may include using a formation agent, registered office address, share capital, and optional extras like printed documents.

How long does it take to form a company online?

Usually between 3–6 working hours, when applying online with all required information and identity checks in place. Sometimes it can take 1–2 business days depending on Companies House workload.

Do I need to live in the UK to form a company?

No. Non-UK residents can form a UK company. However, the company must have a UK registered office address, which must be a physical UK address. Directors can be based abroad.

What is a registered office address?

A registered office address is the official address of the company where formal documents, legal notices and correspondence from Companies House will be sent. It must be in the UK and will be publicly visible.

What information or documents are needed to register a UK company?

You’ll need:

• A unique company name

• At least one director (aged 16+)

• At least one shareholder

• Proof of identity and proof of address

• Details of share capital

• Memorandum and Articles of Association

What is the minimum share capital?

There is no required minimum share capital. Many companies start with just £1 share capital.

What are the Memorandum and Articles of Association?

These are the constitutional documents of the company: the Memorandum records initial shareholders and intent to form the company; the Articles of Association set out internal rules (e.g. director powers, how meetings are run).

Can I use my home address as my registered or director’s service address?

Yes, but the registered office must be in the UK. A director’s service address can also be used, but it becomes public record. Many use formation agents or address services for privacy.

What ongoing obligations does a UK company have after formation?

After formation you must:

• File a Confirmation Statement annually

• Prepare and file annual accounts

• Maintain statutory registers (directors, shareholders, PSCs)

• Ensure the registered office is valid

• Comply with tax obligations (corporation tax, PAYE etc.)

When can I start trading once my company is formed?

Once Companies House issues the Certificate of Incorporation, you legally exist and can commence business activities. However, you may need to register for tax, open bank accounts, or arrange VAT before full operations.

What if my name is already taken or uses restricted words?

Companies House checks for name uniqueness. If a name is too similar to an existing one or includes restricted words (like “Bank”, “Royal”, “Charity”), you may need permission or supporting documentation.

What are the differences between forming a company myself and using a formation agent?

Forming yourself (direct via Companies House) is cheaper, but you’ll need to handle all paperwork and obligations. Agents provide extra services (support, registered address, document templates) but cost more.

Are there any tax implications of forming a company?

Yes. You’ll need to register for Corporation Tax. Directors/shareholders should understand how salary and dividends are taxed. VAT registration may be required if turnover exceeds the threshold.

Do I need a UK bank account?

Not to form the company, but a UK bank account is highly recommended (often essential) for trading, receiving payments, and credibility. Non-UK residents may face stricter bank checks.

What powers and responsibilities do company directors have?

Directors must run the company for its benefit, comply with its Articles, exercise reasonable care and skill, avoid conflicts of interest, meet filing obligations, and act lawfully. Failure can lead to personal liability.

What is a Person with Significant Control (PSC)?

A PSC is anyone who holds significant control over the company (e.g. more than 25% of shares or voting rights, or significant influence). Information about PSCs is published on the public register.

Can I change company details after incorporation?

Yes. You can change directors, shareholdings, company name, registered office, or Articles of Association, but you must file the changes with Companies House and sometimes pay fees.

How do I dissolve or close a company?

To close a company you must stop trading, settle debts, file final accounts, apply to Companies House via a DS01 form, and notify HMRC. There may be tax consequences.

What are the steps to incorporate a private limited company in the UK as a foreigner?

To incorporate a private limited company (LTD) in the UK as a foreigner, choose a unique name, appoint at least one director, provide a UK registered office address, define share structure, and submit the IN01 form online to Companies House with a £12 fee; approval is typically within 24 hours, allowing remote setup for non-residents.

How much does it cost to set up an LTD company in the UK for non-residents?

The cost to set up an LTD company in the UK for non-residents starts at £12 for Companies House filing, plus optional costs like professional services (£200-500), virtual office (£50-150 annually), and accounting setup, totaling £300-1,000 for basic private limited company incorporation.

What are the requirements for foreigners to register a limited company in the UK?

Requirements for foreigners to register a limited company in the UK include providing director identification, a unique company name, at least one director (no residency required), a UK registered office, and online submission to Companies House; 100% foreign ownership is allowed with no minimum capital.

What are the benefits of forming a UK LTD company for international entrepreneurs?

Benefits of forming a UK LTD company for international entrepreneurs include limited liability protection, corporation tax rates of 19-25%, access to R&D tax credits, double taxation treaties with 130+ countries, credibility for funding, and post-Brexit trade deals, ideal for tech, finance, and e-commerce sectors.

How long does it take to register an LTD company in the UK online?

It takes about 24 hours to register an LTD company in the UK online through Companies House, provided documents like director details, share allocation, and SIC codes are submitted correctly; this efficient process suits non-residents seeking quick private limited company formation.

What is the difference between a UK LTD and LLP for startup founders?

The difference between a UK LTD and LLP for startup founders is that LTDs have share capital, corporation tax, and suit product-based businesses with one director, while LLPs offer pass-through taxation and require two members, better for professional services; both provide liability protection.

 What is the corporate tax rate for new LTD companies incorporated in the UK?

The corporate tax rate for new LTD companies incorporated in the UK is 19% on profits up to £50,000, increasing to 25% above that, with reliefs like Patent Box and R&D credits reducing effective rates for qualifying innovative businesses in the UK market.

Do I need a local director for LTD company formation in the UK if I’m overseas?

No, you don’t need a local director for LTD company formation in the UK if you’re overseas; any natural person can be a director regardless of residency, but a UK registered office is mandatory, enabling full remote management for non-resident owners.

How to open a corporate bank account for a UK LTD company after registration?

To open a corporate bank account for a UK LTD company after registration, provide Companies House documents, director IDs, proof of address, and a business plan; banks like HSBC or Lloyds offer online applications for non-residents, with compliance checks for anti-money laundering.

What are the annual compliance requirements for a UK private limited company?

Annual compliance requirements for a UK private limited company include filing a confirmation statement (£13 fee), annual accounts (audited if turnover exceeds £10.2 million), corporation tax returns with HMRC, and VAT filings if turnover over £90,000, ensuring regulatory adherence.

Can a foreigner be the sole director and shareholder of a UK LTD company?

Yes, a foreigner can be the sole director and shareholder of a UK LTD company, with no residency restrictions; register online with Companies House, appoint yourself, and maintain a UK address, allowing complete control for international business ventures.

What is the minimum capital requirement for incorporating an LTD company in the UK?

There is no minimum capital requirement for incorporating an LTD company in the UK; you can start with £1 in share capital, with no deposit needed, making it accessible for startups and small businesses focusing on growth without financial hurdles.

How to choose a registered office address for UK LTD company formation?

To choose a registered office address for UK LTD company formation, select a valid UK location (physical or virtual from £20-100/month) for official correspondence; it must be publicly listed on Companies House, supporting non-residents in compliant private limited company setup.

 What visas are needed for foreigners starting a UK LTD business?

Visas needed for foreigners starting a UK LTD business include the Innovator Founder Visa for startups, Skilled Worker Visa for employees, or Global Talent Visa for experts; applications via UKVI require business plans and funds, post-Brexit with points-based immigration.

How does UK LTD company formation compare to Ireland for international businesses?

UK LTD company formation compares to Ireland for international businesses with similar low barriers (no min capital) and tax incentives, but UK has 19-25% corporation tax vs. Ireland’s 12.5%; UK offers larger market access, while Ireland suits EU headquarters with lower rates.