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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 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 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:

  • 19% corporate income tax rate;
  • 20% standard VAT rate, with lower rates of 12.5%, 5% and 0%;
  • 13.8% national insurance contributions payable by the employer on all income in excess of GBP 170 per week.

If you want to set up an LTD in the United Kingdom, and need to know more about the process or its taxation, our team can help you. Contact us as soon as you wish to start the incorporation process.

We offer services in Wimbledon, East Ham, and many other areas.