Business guide for the United Kingdom: setting up

What you need to know

1. Can a foreigner set up a company in the United Kingdom?

   Business structure in the United Kingdom, Private limited company (Ltd), what it may do: Anyone 16 or over who is not disqualified; no nationality rule. Your money is protected if the company has debts. Suits almost every purpose: trading, services, tech, holding, property, import and export.

   Where this comes from

   • Set up a business (legal structures), read 25 October 2026

2. How much does a British company cost to set up?

   Business structure in the United Kingdom, Private limited company (Ltd): Set up: £100 online, usually within 24 hours; People: 1 director (16+) and 1 shareholder; can be the same person; Live in the UK?: No: directors can live abroad; Capital: No minimum (£1 is fine); Tax: Corporation Tax 19% to 25% of profit. Official fees: Incorporation online: £100; Identity verification (One Login): Free; First confirmation statement (online): £50; ICO data protection fee, if not exempt: £52. Time: Registration: Usually within 24 hours online; 8–10 days by post; Company tax number (UTR): Within 15 working days, by post; Corporation Tax activation code: 10 days, or 21 days if you live abroad; Authentication code: Up to 10 working days, by post; Business bank account: 4 weeks to 3 months.

   Where this comes from

   • Set up a business (legal structures), read 25 October 2026

3. What taxes does a British company pay?

   Business taxes in the United Kingdom: Company profit: 19% up to £50,000; 25% above £250,000; VAT: 20%; register over £90,000 (from the first sale if based abroad); Employer NI: 15% on pay above £5,000 a year; Dividends: None held back on ordinary dividends; Interest and royalties abroad: 20% held back unless a treaty lowers it; Treaties: India, US, UAE in force.

   Where this comes from

   • Corporation Tax rates, expenses and reliefs, read 25 October 2026

4. Which office registers companies in the United Kingdom?

   Office for setting up a business in the United Kingdom: Companies House. What it handles: Registering the company, identity checks, yearly filings. Address: Crown Way, Cardiff CF14 3UZ (all post, for every UK company; offices not open to the public). Phone: 0303 1234 500 (Mon–Fri 8:30am–6pm). Email: enquiries@companieshouse.gov.uk. Website: https://www.gov.uk/government/organisations/companies-house.

   Where this comes from

   • Companies House: office access and opening times, read 25 October 2026

5. How does my foreign company register a British branch?

   Business structure in the United Kingdom, UK branch of your foreign company: Set up: Form OS IN01, £124, paper only; Deadline: Within 1 month of opening in the UK; Owned by: Your existing foreign company; Tax: Corporation Tax on UK profits only. Official fees: Form OS IN01: £124; Overseas accounts filing (online): £50; ICO fee, if not exempt: £52. Time: Registration: Not stated officially; business.gov.uk says a branch typically takes about one month; Bank account: 4 weeks to 3 months.

   Where this comes from

   • Overseas companies registered in the UK (guidance), read 25 October 2026

6. Which foreign companies can open a branch in Britain?

   Business structure in the United Kingdom, UK branch of your foreign company, what it may do: An existing foreign company with a physical place of business in the UK (an independent agent or occasional hotel meetings do not count). Not partnerships or unincorporated bodies. The parent company is liable for the branch’s debts.

   Where this comes from

   • Overseas companies registered in the UK (guidance), read 25 October 2026

7. What tax reliefs and support exist for British businesses?

   Incentives and schemes for businesses in the United Kingdom: R&D tax relief (20% credit); SEIS and EIS reliefs for your investors; Patent Box: 10% tax on patent profits; Freeports and Investment Zones reliefs; British Business Bank finance through partner lenders; Innovate UK grants and loans; Global Entrepreneur Programme (by invitation); Free start-up advice: Business Support Service 0800 998 1098.

   Where this comes from

   • R&D tax relief: the merged scheme and enhanced R&D intensive support, read 25 October 2026

8. Who can form a limited liability partnership in Britain?

   Business structure in the United Kingdom, Limited liability partnership (LLP), what it may do: 2 or more people (or companies) running a business for profit. Members are protected from the LLP’s debts. No residency rule for members.

   Where this comes from

   • Limited liability partnerships: incorporation and names (Companies House), read 25 October 2026