Great Britain is a prestigious and highly developed jurisdiction offering numerous advantages for businesses & IT entrepreneurs. Its economy operates independently of EU decisions, and the national currency, the British pound, remains one of the most stable currencies worldwide. Despite leaving the EU, favorable economic conditions continue to attract foreign investors and ensure the safety of investments.
As Europe’s tech and financial hub, the UK has the highest concentration of international businesses in digital development, IT research, and innovation. In 2023, London was recognized as one of Europe’s best cities for startups, thanks to its developed infrastructure and access to international investments. The government actively supports the tech sector through funding programs & special visa schemes for highly skilled professionals.
Choosing a business structure in UK
In the UK, two most popular business structures are LTD and LLP.
LTD (Private Company Limited by Shares):
This type combines elements of both LLCs and corporations. It is the most common form, allowing one or more members to engage in any legal activity. Unlike an LLC, the liability of members is not limited by their contributions but by the unpaid value of their shares. Each owner holds shares and is a shareholder.
- Suitable for SMB-sized enterprises, startups
- All profits are taxed
- Annual financial statements are required
- No minimum capital required
- At least one director and one shareholder (can be the same person, no residency requirements)
- Secretary is optional
- The register of beneficiaries is public, with open information
- A local legal address is required, and real presence (office, resident director) is needed to open a bank account
- Liability is limited to shares, and profits can be distributed as dividends
LLP (Limited Liability Partnership):
In this structure, partners have limited liability and are taxed on personal income rather than the firm’s profits.
- Liability is limited to the amount contributed during registration
- If no actual business activity is conducted in the UK, residents pay taxes in their home countries
- Requires at least two partners, who can be individuals or legal entities
Why we don’t recommend registering an LLP in Great Britain
Opening an account for an LLP can be challenging, even with payment systems, let alone traditional banks. This structure complicates financial operations, and some partners may avoid collaborating with LLPs, perceiving them as similar to offshore entities, which leads to distrust. Due to these factors, registration may cause more issues than advantages. We advise considering LTD registration instead.
