We use cookies for statistical purposes.

Our Articles

Open an LLC in UK

Open an LLC in UK

Foreign nationals, as well as UK citizens, follow the same steps for opening an LTD company in UK.

Starting a limited company in UK in 2024 is subject to set of mandatory requirements, and our London UK lawyer is ready to assist throughout all of the mandatory steps, both in the pre-registration phase, and once the LTD is registered, as needed.

We are a full-service law firm in the UK that offers complete commercial and business legal services, including those for company creation.

Read below to find out more about how to set up an LTD company in UK and reach out to our lawyer in London when you need assistance.

Starting a small business in UK

The limited liability company is often the business form chosen by those who wish to start a small business in the United Kingdom. However, an LTD is also suitable for medium-sized companies.

The limited company has two forms, limited by shares and limited by guarantee. The table below summarizes the differences.

 Limited by sharesLimited by guarantee
Legal identitySeparate from the foundersSeparate from the founders
Separate financesSeparate from the founder’s personal assetsSeparate from the founder’s personal assets
StructureIncorporated by shareholders; has sharesIncorporated by guarantors; has a guaranteed amount
The treatment of profitsThe profits (after tax) are distributedThe profits are invested back into the company

In practice, most investors who are interested in starting a limited company in the United Kingdom do so in the form of a company limited by shares.

Local and foreign investors interested in starting a small business in the United Kingdom in the form of a limited liability company can reach out to our lawyer in London for more information and assistance.

Our commercial solicitors can answer a wide range of questions and offer legal advice as needed.

How to register a limited company in UK

The UK LTD company registration process includes the following steps:

  1. Choosing the company name: the founders of the company are required to check if the desired name is available fore registration; certain rules apply to company names;
  2. Determine the shareholding structure: the LTD needs to have at least one shareholder or one guarantor, depending on its type;
  3. Determine the management structure: it is mandatory to appoint a director for the LTD, however, having a secretary is not compulsory;
  4. Prepare the documents: these are the company’s constitutive documents, the Memorandum of Association and the Articles of  Association;
  5. Register: the actual step to register a limited company in the United Kingdom is performed with the Companies House; the aforementioned documents, together with the application form, are submitted to the authorities.

Our London United Kingdom lawyer can give you more details about the Government’s requirements for registering a company, choosing the object of activity, and others.

Investors who are interested in United Kingdom LTD company registration in 2024 should be mindful of the fact that different industries have different licensing requirements.

We also assist business owners who wish to apply for special permits and licenses for their newly formed LTD company.

The limited liability company can be fully owned by a foreign national, as such, opening an LTD company in the United Kingdom for a non-resident is a convenient option.

Apart from the steps required to set up an LTD company in the United Kingdom entrepreneurs should also be aware of the taxes for this type of company:

  • 25% main corporate rate for companies with profits over GBP 250,000;
  • A small corporate tax rate of 19% applies to companies with a profit that exceeds GBP 50,000 but does not exceed the threshold of GBP 250,000;
  • 20% standard VAT rate, with lower rates of 5% and 0%;
  • National insurance contributions payable by employers, self-employed individuals, as well as employees; the contribution has a rate of 10% between 6 January 2024 and 5 April 2024 when the weekly income is between GBP 242 and GBP 967 and 2% on income that exceeds this amount; our team can give you more details.

For many of those who set up a company in the UK, the limited company is the most popular choice. Not only is the registration process a straightforward one (it can be accomplished in as little as 24 hours in some cases), but the finances of the founder(s) remain separate from those of the business. A company registering in the UK must follow a set of rules, and our team is here to answer your questions.

The number of registered companies in the UK has been increasing slowly, with the 2021 to 2022 year being the one with the second highest number of incorporations on record. At the end of March 2022, the total number of entities on register was 4,894,356, more than at the end of the same month one year prior (the increase was of 3.8%). England and Wales accounted for most of the companies by region, followed by Scotland and, lastly, Northern Ireland. The private limited company remains one of the most popular corporate body types.

According to a business insight report issued for February 2024, 22% of trading companies in the UK expect their turnover to increase in March 2024, by approximately 4 percentage points when compared to February.

If you want to set up an LTD in the United Kingdom in 2024 and need to know more about the process or its taxation, our team can help you.

If you are in need of different legal services, our lawyer in UK can answer questions about immigration, employment, or data protection rights. We also assist individuals and companies interested in issues concerning property law (residential and commercial), construction law, or family law. You can find out more about our services by reaching out to one of our lawyers in England.

We offer services in Wimbledon, East Ham, and many other areas. Contact us as soon as you wish to start the incorporation process.