Company formation in UK is a process that follows a few key steps,depending on the chosen business form: sole trader, limited company or partnership in most cases.
All companies in the UK need to be properly registered and will need to have licenses or permits, as well as business insurance in some cases.
| Quick Facts | |
|---|---|
| Types of companies |
– private company limited by shares (Ltd), – public company limited by shares (Plc), – company limited by guarantee, – community interest company, – charitable incorporated organization, – co-operative society |
|
Minimum share capital for company formation in UK |
– no minimum capital for the Ltd; – £50,000 for the PLC |
|
Minimum number of shareholders |
1 |
| Number of directors | 1 |
| Local director required for company formation in UK (Yes/No) |
No |
| Mandatory steps for company formation |
– choose a company name, – decide on the shareholding structure, – appoint the company director, – prepare the documents, – register the company with the Companies House and for Corporation Tax |
| Residency requirements for foreign company owners | No |
| Time frame for the incorporation (approx.) |
– 1 business day for online registration, – 8 to 10 days for post applications to the Companies House |
| Corporate tax rate |
19% |
| Dividend tax rate | 0% in most cases |
| VAT rate in UK |
– 20% standard rate, – 0%, 5% and 12.5% reduced rates |
| Number of Double Taxation Treaties in the UK (approx. ) |
130 |
| Annual accounting/filing requirements in the UK | Yes |
| Special licenses for company formation in UK |
Yes, industry-specific |
| Tax exemptions or incentives |
A dividend tax exemption applies in case of most distributions. A tax deduction is available for certain R&D expenditure in case of small and medium companies. A patent box regime and creative industry tax reliefs apply. |
The process for UK company formation for a non-resident is the same in terms of registration and there are no rules requiring foreign company directors or shareholders to become residents.
A London UK lawyer from our team can provide you with more information about particular laws about company formation in UK.
We invite you to read below to find out more about the basic business forms and the main requirements for company formation in UK.
Foreign investors who need local assistance and representation for their business can also rely on the services provided by our lawyers.
Table of Contents
Form a company in UK with our help
Setting up a business is done by following a number of mandatory steps.
The requirements for UK company formation depend on the chosen business form.
Setting up a sole trade is simpler and for some entrepreneurs, it can be their first step. However, one should note that he is personally responsible for the business’s debts when choosing this business form.
In the partnership, 2 or more people share responsibility for the business’s debts and also its profits. If these two simpler business forms interest you, our lawyers can assist with company formation services in UK.
For the limited company, the main steps are listed below:
- Choose the form: this type of company can be limited by shares or limited by guarantee; the first one has shares and shareholders and the latter has guarantors and the guaranteed amount;
- Choose the company name: for company formation in London, as well as in any other part of the UK, the desired company name needs to be available for use;
- Choose the relevant parties: the directors and the company secretary, or the guarantors, as needed;
- Register the business: this step is essential for company formation in UK and it is performed with the Companies House.
Company formation in the Isle of Man follows similar steps, however, if you wish to incorporate there, you are advised to seek special assistance from our attorneys.
Our team of lawyers in London can provide special assistance for a non-resident with bank account who wishes to open a business.
For those who are interested in UK company formation for a non-resident, we offer solutions through a power of attorney, as needed.
Statistics of company formation in UK presented by our team
Are you interested in company formation in the United Kingdom?
The number of investors who chose to form a company in UK increased in 2020/21, according to data released by the Companies House.
Company formation in London remains a popular choice amongst investors and the overall number of companies registered at the end of March 2021 was highest in England and Wales (4,408,528), as compared to other regions, for example, Scotland (235,124).
Company formation in the Isle of Man is also a preferred choice, given the tax neutrality options available to investors.
Our team lists key data on UK company formation below:
- the total number of companies included in the register at the end of March 2021 was 4,716,126;
- this represents an 8.4 % increase in the number of registered companies, compared to the end of March 2020;
- the average company age at the end of March 2021 was 8.5 years; this average age has been declining in recent years;
- private limited companies account for 93% of the total number of companies, while public limited companies for only 0.1%.
If you are interested in more information about registrations with the Companies House, as well as details on if you are a non-resident with bank account in the UK who wishes to invest, we can assist you.
Company formation in UK is easier with our help, whether you are a UK citizen or resident or a foreign national looking for investment options in London or other cities.
Contact us for complete company formation services in UK.
We offer services in Wimbledon and many other areas.
