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 2025 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 shares	Limited by guarantee
Legal identity	Separate from the founders	Separate from the founders
Separate finances	Separate from the founder’s personal assets	Separate from the founder’s personal assets
Structure	Incorporated by shareholders; has shares	Incorporated by guarantors; has a guaranteed amount
The treatment of profits	The profits (after tax) are distributed	The 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 2025 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.

Company taxation

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 tax rate for companies with profits over GBP 250,000;
• A small corporate tax rate of 19% applies to companies with profits below GBP 50,000;
• 20% standard VAT rate, with lower rates of 5% and 0%;
• National insurance contributions payable by employers, self-employed individuals, as well as employees: for the 2024/25 tax year the employer’s portion of the national insurance contribution is 13.8% of the employee’s salary on all income in excess of GBP 175 per week. Our team can give you more details.

For many 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.

UK company statistics

According to data from the Office for National Statistics (ONS), the biggest percentage increase in the number of companies between 2023 and 2024 was recorded in Northern Ireland. More than one-third of these companies were in the agriculture, forestry and fishing industries.

Other data from the ONS is summarized below by our team:

• The corporation is the preferred business form, and the number of companies continues to rise: out of the total UK businesses, 75.6% were corporations in March 2024;
• By comparison, the number of sole traders in the country has decreased by 14.6% on a year-on-year basis (between March 2023 and March 2024).

If you want to set up an LTD in the United Kingdom in 2025 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.