Company Formation in the UK

UK Incorporation

• 

  Ongoing Obligations

  UK companies must file annual accounts and a confirmation statement with Companies House, maintain accounting records in line with UK GAAP or IFRS, and submit corporation tax returns to HMRC annually. VAT returns are usually filed quarterly, and payroll reporting follows the Real Time Information (RTI) system. All companies must maintain a PSC (Persons with Significant Control) register, comply with AML regulations, and may be subject to an audit if annual turnover, assets, or employee thresholds are exceeded.

• 

  Business Structure Requirements

  The most common business entity is the Private Limited Company (Ltd). It requires at least one director and one shareholder, who may be the same person and of any nationality. A registered office address in the UK is required, but there are no residency restrictions on directors or shareholders. Companies are incorporated online through Companies House, typically within 24 hours.

• 

  Capital Setup

  There is no minimum share capital requirement for a UK Ltd company — it can be incorporated with as little as £1. Shares can be issued in any currency, and liability is limited to the amount unpaid on those shares. Ownership details must be recorded in the company’s register of members and disclosed to Companies House.

• 

  Taxes

  The corporate income tax rate is 25% (as of 2024), with a small profits rate of 19% for companies earning under £50,000. The UK offers an extensive network of double-tax treaties, R&D tax credits, and a Patent Box regime that reduces tax on qualifying intellectual property income to 10%. The standard VAT rate is 20%, with reduced rates of 5% and 0% for specific goods and services. Dividend payments to non-residents are generally not subject to withholding tax.