United Kingdom
Company Formation
The United Kingdom is one of the world’s most established and respected jurisdictions for company formation. Its reputation for strong governance, a transparent legal framework and a dynamic business environment makes the UK a preferred destination for businesses of all sizes.
Despite its exit from the European Union, the UK remains a global financial and business hub with a favourable tax regime, extensive international trade networks and a leading regulatory framework, especially in sectors like iGaming, finance and technology.
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Why the UK
- The United Kingdom is an excellent choice for company formation, offering access to global markets, a favorable tax regime and strong legal protections.
- With a corporate tax rate of 19% and generous R&D tax reliefs, it provides significant financial benefits.
- The UK’s transparent legal system, based on English common law, ensures robust protections for businesses and investors.
- Its extensive double taxation treaties enhance tax efficiency for international operations while its strategic location facilitates access to European, North American and global markets.
- The UK also supports start-ups with funding opportunities, incubators, accelerators and tax incentives for innovation-focused businesses.
Key Contacts
Alexia Panzavecchia
Claire Marie Calleja Zammit
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Key Information Overview
 | Types of Companies | Private Limited Company (Ltd), Public Limited Company (PLC), Branch |
 | Minimum Share Capital | Ltd: No minimum, PLC: £50,000 |
 | Registered Office | Must have a registered office in the UK |
 | Shareholders & Directors | At least 1 shareholder and 1 director |
 | Bank Account | Must open a UK bank account |
 | Tax Regime | 25% corporate tax, reduced rates for small profits |
 | Time to Complete Incorporation | 1-3 days for standard service |
 | Annual Maintenance Costs | Varies by company size; includes annual filing fees, compliance costs |
 | Audit Requirements | Mandatory for companies exceeding thresholds on turnover or assets |
 | Market Access | Access to UK market and global financial networks |
 | Key Benefits | Strong financial market, established legal system, no capital requirements for Ltd |
 | Legal Framework | Based on English common law |
 | Physical Presence Requirements | Registered office is required; physical presence not mandatory |
 | Corporate Governance Requirements | At least 1 director; company secretary optional for private companies |
 | Language Requirements | English |
 | Tax Residency Rules | Tax residency if managed and controlled from the UK |
 | Required Documents | Memorandum of Association, Articles of Association, ID proof, registered office |
 | Compliance & Reporting | Annual returns, financial statements, VAT filings |
 | Employee and Payroll Requirements | Must comply with UK employment laws, including PAYE and National Insurance |
Types of Companies
THE UK OFFERS VARIOUS TYPES OF CORPORATE STRUCTURES TAILORED TO SUIT DIFFERENT BUSINESS MODELS AND SECTORS. THE MOST COMMON FORMS ARE:
01
Private Limited Company (Ltd)
- The most popular type of company in the UK, ideal for small and medium-sized businesses.
- No minimum share capital requirement, making it highly accessible for start-ups.
02
Public Limited Company (PLC)
- Suitable for larger companies that intend to raise capital through public listings or float on stock exchanges.
- Minimum share capital requirement: £50,000, with at least 25% paid up before incorporation.
03
Limited Liability Partnership (LLP)
A hybrid structure combining elements of a partnership and a company, offering limited liability to its partners while retaining flexibility in management.
04
Branch of a Foreign Company
Foreign companies can establish a branch in the UK, allowing them to operate without creating a separate legal entity.
05
Special Purpose Vehicles (SPVs)
The UK is widely recognised for its use of SPVs in various business sectors, from real estate and finance to technology and investment. SPVs benefit from the UK’s strong regulatory framework and the ability to structure businesses tax-efficiently.
UK Holding Company
The UK offers an attractive holding company regime, with exemptions on dividends and capital gains from qualifying subsidiaries. Many multinational corporations use the UK as a base for their holding operations.
Securitisation Vehicle
SPVs in the UK are commonly used for securitising financial assets, such as mortgages or loans, benefiting from the UK’s well-developed financial services industry.
Real Estate Investment Trusts (REITs)
REITs are used for managing income-producing real estate portfolios. These vehicles enjoy tax exemptions on rental income and capital gains, provided certain conditions are met.
Investment Funds
The UK is a global hub for investment funds, with many types of SPVs set up to manage venture capital, private equity, or institutional investments.
Start-Ups
The UK offers an excellent environment for start-ups, with numerous government incentives, funding opportunities and support networks aimed at fostering innovation, particularly in technology, fintech and iGaming.
Tax Incentives:
- Corporate Tax Rate: The standard corporate tax rate is 19%, making it competitive for businesses.
- R&D Tax Credits: Generous tax reliefs are available for companies engaged in research and development, particularly in tech-driven sectors.
Government Grants and Support:
- Seed Enterprise Investment Scheme (SEIS): Provides tax relief to investors purchasing shares in qualifying start-ups, encouraging venture capital and angel investment.
- Innovate UK Grants: Funding for start-ups working on innovative technology, with particular focus on sustainability, tech and healthcare.
Business Support:
Incubators and Accelerators: The UK boasts a thriving start-up ecosystem, with numerous incubators and accelerators offering funding, mentorship and resources to new businesses.
Access to Markets:
Global Financial Hub: The UK is a gateway to European and international markets, making it easy for start-ups to scale globally.
Digital Innovation:
Tech Nation and UK Tech Hubs: The UK government actively supports digital and technology innovation through various programmes and grants aimed at fostering start-ups in fintech, AI and blockchain.
A
Grade A+: Highly Start-Up Friendly
The UK provides one of the most dynamic and supportive environments for start-ups, particularly in the technology and innovation sectors. With strong government incentives, access to funding and a mature business infrastructure, the UK is an attractive choice for entrepreneurs
Benefits
The UK offers several compelling benefits for businesses looking to incorporate, including access to global markets, a transparent legal system and a favourable tax regime
Corporate Tax Rate
The UK’s corporate tax rate is 19%, making it highly competitive for businesses looking for an efficient tax environment
Double Taxation Treaties
The UK has a vast network of double taxation treaties with over 130 countries, providing tax relief on international transactions.
Global Financial Hub
The UK, particularly London, is one of the world’s leading financial centres, providing easy access to global markets, financial services and investment opportunities.
Highly Skilled Workforce
The UK offers access to a well-educated, diverse and skilled workforce, particularly in sectors like technology, finance and digital innovation.
Robust Legal System
The UK’s legal system is transparent and based on English common law, providing strong investor protections and a stable regulatory environment for businesses.
Requirements
To establish a company in the UK, several key legal and administrative requirements must be met.
01
Shareholders
A minimum of one shareholder is required for a private limited company (Ltd). Shareholders can be individuals or legal entities, with no nationality or residency restrictions.
02
Directors
At least one director is required and the director must be a natural person. There are no residency requirements for directors.
03
Company Secretary
While it is not mandatory for private companies, public companies (PLCs) must appoint a company secretary who is responsible for overseeing regulatory compliance.
04
Registered Office
Every UK company must have a registered office within the UK, which will serve as the company’s official address for legal and correspondence purposes.
05
Memorandum and Articles of Association
These documents must be drafted and submitted to Companies House, outlining the company’s internal governance and objectives.
06
Minimum Share Capital
Private limited companies (Ltd) do not have a minimum share capital requirement, while public limited companies (PLC) require a minimum of £50,000 in share capital.
07
Bank Account
A UK or international bank account must be opened to deposit the share capital and for company transactions.
Mergers & Acquisitions
TAILORED SUPPORT to fast-track your market entry
Our Mergers & Acquisitions services are designed to assist clients in acquiring existing companies with pre-established licenses, streamlining the process of entering or expanding in key markets. These services are particularly relevant for investors seeking to fast-track their market entry while ensuring efficient and compliant solutions.
Identifying Suitable Businesses
We help clients locate companies that meet their specific goals, focusing on entities with strong operational histories and the required licenses.
Legal and Regulatory Assistance
Our experts guide clients through the unique legal and compliance frameworks of each market, ensuring a smooth acquisition process with minimal risk.
Valuation & Due Diligence
We conduct in-depth assessments of the target company’s financial and operational status, providing transparency and confidence in the acquisition.
Post-Acquisition Support
For clients who decide to divest, we offer comprehensive services to facilitate the sale of the company and transfer of licenses.
Frequently Asked Questions
What is the corporate tax rate in the UK?
The corporate tax rate in the UK is 25%, but careful tax planning can help reduce the effective rate for certain businesses.
Does the UK have VAT obligations for businesses?
Yes, the standard VAT rate is 20%, and businesses with taxable supplies above £85,000 must register for VAT.
What legal structures are common for businesses in the UK?
The most common structures are the Private Limited Company (Ltd) and Public Limited Company (PLC), both offering limited liability.
Do companies in the UK need to appoint local directors?
No, there are no residency requirements for directors in the UK, but at least one director is required.
Are audited financial statements required in the UK?
Small companies may be exempt from audit, but larger companies must file audited financial statements annually.
Is there a withholding tax on dividends in the UK?
Yes, there is a 0% withholding tax on dividends for UK residents, but dividends paid to non-residents may be subject to withholding tax, depending on treaties.
What is the minimum share capital required to form a company in the UK?
There is no minimum share capital requirement for a Private Limited Company (Ltd), though it must issue at least one share.
Does the UK have double taxation treaties?
Yes, the UK has a broad network of double taxation treaties with over 130 countries.
How long does it take to incorporate a company in the UK?
The incorporation process is generally fast, with companies often registered within 24 hours.
Need assistance?
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