Company
registration
in UK

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 a tech and financial hub of Europe, the UK has the highest concentration of international businesses in digital development, IT research, and innovation. In 2023, London was recognized as one of the best cities for startups in Europe, 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.

Benefits of doing business in UK with Finevolution

• Full company registration within agreed timeframes
• Assistance with opening a payment account
• Post-registration maintenance
• Accounting & legal support

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.

Steps to register an LTD company in UK

• Initial consultation with Finevolution specialists
• Name selection and verification for uniqueness, decide on business structure, and conduct video verification of the shareholder and director
• Draft the Articles of Association and prepare necessary documents
• Submit the application to the Companies House and obtain the certificate of registration
• Pay all state fees
• Confirm a registered office address
• Open an account in a payment system
• Wait for the Unique Taxpayer Reference (UTR), sent by mail to company’s address

Registration timeline

Preparation and gathering of information take 1 to 5 days. Registration at Companies House takes 2-3 business days, while opening apayment account can take from 5 days (sometimes up to a month). Receiving the UTR takes 15 days from the registration date.

Documents required for business registration in UK

• Three company name options for LTD
• Description of business activities
• National & international passports of shareholder and director, proof of address (e.g., utility bill in English, no older than 3 months)
• Additional documents:
• Articles of Association
• Statement of Capital
• Registered Office Address
• ID & address verification for anti-money laundering compliance

Cost of LTD company registration in UK

The registration package includes:

• Full support
• Business set up
• Obtaining the UTR number
• Online registration document package
• Legal address for one year
• Account setup in a payment system

Accounting services are not included in the registration package.

Business taxation on UK companies

• Corporate Income Tax: 25% for the fiscal year; 19% for companies with profits under £50,000
• Standard VAT rate: 20%
• Dividend tax: 0%

Auditing and reporting for businesses in UK

All UK companies, regardless of activity or structure, must prepare annual financial and statutory reports.

• Confirmation statement: Annual update of company details, including owners, directors, and operations. No penalty for non-submission, but failure may lead to business dissolution.
• Annual accounts: Reflects the financial status of the company and must be submitted by all active enterprises. Late filing penalties start at £100.
• Dormant accounts: Filed by companies that have no activity to confirm their inactive status.
• Active companies must also file a Tax Return & penalties apply for late submission, including income tax & interest.
• Audit: Not mandatory for small companies, but required if the business meets two of the following:
• Annual turnover exceeds £5.6 million
• Assets worth over £2.8 million
• More than 50 employees
• All VAT-registered UK companies must file quarterly VAT returns. Late submission penalties start at £150 for a one-month delay & increase for further delays.

Our team is ready to provide consultations on company registration in UK. Send a request through the form below or a message on Telegram bot/Viber, WhatsApp chat, for consultations. Our working hours are 9:00-19:00 from Monday to Friday.