Good to know
Good to Know
- Incorporating a UK company is entirely separate from immigration status — forming an 'Ltd' does not give you any right to live, work, or even visit the UK; that requires a separate visa application through the Home Office.
- The persistent belief that a UK company needs at least one UK-resident director is a myth — it comes from confusion with individual banks' own onboarding rules, not from company law itself.
- Since 18 November 2025, all new directors (including overseas ones) must complete identity verification with Companies House before their appointment is finalised; existing directors have until 18 November 2026 to comply or risk being removed from the register or fined.
- Opening an actual UK business bank account is usually the slowest and most unpredictable part of the process for non-residents — traditional high-street banks often want an in-person visit, while UK fintechs (Wise Business, Revolut Business, Tide) are far more likely to onboard non-resident directors remotely.
- Companies House fees rose again on 1 February 2026 (incorporation doubled to £100, confirmation statement rose to £50), so budget for the current rate rather than older figures you may see quoted online.
- A registered office address must be a genuine physical UK address — PO boxes alone have not been accepted since March 2024 — so most non-resident founders pay a small annual fee to a virtual-office/registered-office provider.
- The 19%/25% split isn't a simple bracket system — profits between £50,000 and £250,000 fall into a 'marginal relief' band where the effective tax rate tapers up to roughly 26.5% at the margin, which surprises a lot of new company owners.
- Corporation Tax payment (9 months + 1 day after year-end) and the CT600 return filing deadline (12 months after year-end) are different dates — don't assume paying the tax also satisfies the filing requirement.
- Companies House and HMRC are separate bodies with separate filings: the confirmation statement and annual accounts go to Companies House, while the CT600 and tax payment go to HMRC. Filing one does not substitute for the other.
- Sole trader status is administratively much lighter (Self Assessment only, no Companies House filings) but whether you're allowed to trade as a sole trader at all depends entirely on your visa/immigration status — check that separately before assuming this route is available to you.
- You do not need to be a UK resident to be a director or 100% shareholder of a UK limited company — many nomads incorporate a UK company while living elsewhere — but the company itself must still keep a real UK registered office address on file.
- Even a dormant or non-trading UK company still owes an annual confirmation statement and dormant accounts — 'not trading yet' does not pause the filing clock.
Corporate Tax
- Description
- UK Corporation Tax applies to any UK-registered limited company's profits, including one that is 100% foreign-owned, and also applies to a non-UK company trading in the UK through a permanent establishment (e.g. a UK branch).
- Status Note
- These rates have been unchanged since 1 April 2023 and were confirmed unchanged for the 2026/27 financial year at the time of research.
- Associated Companies Note
- If a company has associated companies (e.g. group structures), the £50,000/£250,000 thresholds are divided between them, which can push a smaller foreign-owned UK subsidiary into a higher effective rate sooner than its standalone profits would suggest.
Main Rate
- Rate Percent
- 25
- Detail
- For companies with higher profits, this rate remains at 25 percent for companies with profits above the upper threshold of £250,000.
- Threshold
- Applies where taxable profits exceed £250,000.
Small Profits Rate
- Rate Percent
- 19
- Detail
- Companies with taxable profits of £50,000 or less pay 19%.
- Threshold
- Applies where taxable profits are £50,000 or less per accounting year.
Marginal Relief Band
- Effective Marginal Rate Note
- Within the £50,000–£250,000 band, each additional pound of profit is effectively taxed at around 26.5%, which is higher than the headline 25% main rate because relief is progressively withdrawn as profits rise.
- Range
- £50,000 – £250,000 in taxable profits
- Detail
- Companies with profits between the lower and upper thresholds may qualify for marginal relief, which reduces the effective Corporation Tax rate rather than applying the full 25 percent.
Filing Obligations
- Registered Office Requirement
- A UK limited company (including a foreign-owned subsidiary) must maintain a UK-registered office address that is kept current, even if none of the directors live in the UK.
VAT
- Threshold Basis
- Based on rolling 12-month taxable turnover, not the calendar year.
- Who It Applies To
- The same £90,000 threshold applies equally to sole traders, partnerships, and limited companies — there is no separate, more generous allowance for freelancers.
- Registration Deadline
- If turnover crosses the threshold, registration with HMRC is required within 30 days.
- Registration Threshold
- £90,000
Confirmation Statement
- Cost
- £34
- Form
- CS01
- Deadline
- Must be filed within 14 days of the end of the review period.
- Frequency
- At least once every 12 months, regardless of whether anything about the company has changed.
- Cost Note
- £34 online; late or non-filing is treated as a criminal offence for the company and its directors and can trigger strike-off from the register.
- Recent Reform Note
- Under the Economic Crime and Corporate Transparency Act reforms rolling out from late 2025 into 2026, directors and People with Significant Control (PSC) must verify their identity with Companies House, which now applies to confirmation statement filings.
Corporation Tax Return
- Body
- HMRC (not Companies House) handles Corporation Tax.
- Form
- CT600
- Payment Deadline
- Corporation Tax itself must be paid 9 months and 1 day after the end of the company's accounting period.
- Return Filing Deadline
- The CT600 return must generally be filed with HMRC within 12 months of the end of the accounting period — a separate, later deadline than the payment deadline.
Companies House Annual Accounts
- Deadline
- Private limited companies have 9 months from the end of their accounting reference date to file annual accounts with Companies House.
- Dormant Companies
- Dormant companies must still file annual accounts and a confirmation statement even if the business has not traded.
- First Accounts Deadline
- For a newly incorporated company's first accounts, the deadline is 21 months from incorporation or 3 months after the accounting reference date, whichever is longer.
- Late Filing Penalty Note
- Late filing penalties are automatic and escalate the longer the delay continues, and directors can face personal fines or prosecution for persistent non-compliance.
Sole Trader Vs Limited Company For A Foreigner
- Foreign Company Branch Alternative
- Instead of forming a new UK company, an overseas company can also register a UK branch/permanent establishment, which brings its UK-derived profits into the UK Corporation Tax regime while the parent company itself is not domestic to the UK.
Sole Trader
- VAT
- Still subject to the same £90,000 VAT registration threshold as a company, since the threshold applies to the taxable person regardless of structure.
- Liability
- Unlimited personal liability — there is no legal separation between the individual and the business.
- Reporting
- Income and expenses are reported to HMRC via annual Self Assessment rather than Corporation Tax/Companies House filings.
- What It Is
- Operating as a self-employed individual under your own name (or a trading name) with no separate legal entity from you personally.
- Companies House Filings
- None — sole traders have no Companies House obligations (no confirmation statement, no statutory accounts).
- Practical Note For Foreigners
- Registering as a sole trader is generally the simpler, lower-admin route, but it is only workable if your UK immigration permission allows self-employed work — this depends on your specific visa route and is a separate immigration question, not a business-registration one.
Limited Company
- Liability
- Limited liability — the company's debts are generally separate from the director/shareholder's personal assets.
- What It Is
- A separate legal entity from its owners, registered at Companies House, that can be 100% owned and directed by non-UK residents.
- Tax Layering
- Profits are taxed at company level under Corporation Tax; any salary or dividends a director then draws personally are taxed separately under UK personal income tax rules, which depend on personal tax residency status (covered separately in this guide's Visa & Legal category, not repeated here).
- Director Residency
- There is no legal requirement for a UK company's director(s) or shareholders to be UK residents or nationals — foreign nationals can fully own and direct a UK company remotely.
- Companies House Filings
- Subject to the full annual accounts + confirmation statement regime described above, plus CT600 filing with HMRC — meaningfully more admin than sole trader status.
Incorporation Process And Requirements
- Overview
- The United Kingdom (and London specifically, as the seat of Companies House filings for England & Wales) is widely considered one of the easiest and cheapest jurisdictions in the world for a foreigner to incorporate a company. There is no requirement to be a UK resident, hold a UK visa, or have a local citizen involved in any capacity.
- Timeline
- Online incorporation is fast: most digital filings via Companies House WebFiling or an ACSP are approved within 24 hours (often within a few working hours for straightforward, error-free applications), with an optional same-day service available for a higher fee. Identity verification for directors is a separate step that can be done before, during, or shortly after incorporation, and does not necessarily add delay if completed promptly with a biometric passport or through an ACSP. The realistic total time from starting the process to holding a Certificate of Incorporation is typically 1–3 business days for a non-resident using a formation agent; opening an actual bank account afterward can take longer and is the more common bottleneck.
- Official Registry Link
- https://www.gov.uk/limited-company-formation/register-your-company
- Eligible Business Structure
- The vast majority of foreign founders use a Private Limited Company (Ltd), which requires at least one director and one shareholder — the same person can hold both roles. A company can only be incorporated in one UK legal jurisdiction (England & Wales, Scotland, or Northern Ireland), though it can trade throughout the UK and overseas regardless of where it's registered.
- Local Partner Or Sponsor Requirement
- None. UK company law places no restrictions on the nationality or residency of directors or shareholders, and a non-resident can be the sole director and sole shareholder without ever visiting the UK. Forming a company is a commercial/corporate-law act and does not itself grant any immigration rights or right to live, work, or visit the UK.
- Registered Office Note
- Because a real UK physical address is mandatory and non-negotiable, most non-resident founders pay a small ongoing fee to a registered-office/virtual-office provider rather than using their home address abroad.
Costs
- Annual Confirmation Statement Filing Fee
- £50
Mandatory annual filing, digital rate effective from 1 February 2026 (up from £34).
- Annual Virtual Registered Office Address
- £80
Approximate midpoint of the typical £39–£120/year range charged by reputable UK virtual-office providers for a compliant registered office address.
- Companies House Digital Incorporation Fee
- £100
Standard digital filing fee via Companies House WebFiling, effective from 1 February 2026 (doubled from the prior £50 fee).
- Formation Agent Non Resident Package Low End
- £80
Typical low end of a non-resident formation-agent package (excludes the separate Companies House fee); bundles registered office, director service address, and ID verification handling.
- Formation Agent Non Resident Package High End
- £549
Higher-end formation agent bundles adding VAT registration, bank-introduction letters, and extra compliance services.
- Companies House Same Day Digital Incorporation Fee
- £156
Optional same-day processing surcharge via software filing, effective from 1 February 2026.
Steps
- 1. Choose and check availability of a company name via the free Companies House name-checker.
- 2. Decide on structure (almost always Private Limited Company for solo/small foreign founders) and appoint director(s)/shareholder(s).
- 3. Arrange a UK registered office address and a director's service address (via a formation agent/virtual office provider if you have no UK presence).
- 4. Prepare Memorandum and Articles of Association (standard templates suffice for most cases).
- 5. Complete identity verification for all directors/PSCs — either directly with Companies House via GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP), which is the more common route for overseas founders.
- 6. Submit the incorporation application (Form IN01 equivalent) online via Companies House WebFiling or an ACSP formation platform, providing director/shareholder names, addresses, nationalities, and share structure.
- 7. Pay the Companies House filing fee.
- 8. Receive the digital Certificate of Incorporation, which shows the company name, number, and registration date — needed to open a bank account, sign contracts, and register for tax.
- 9. Register separately for Corporation Tax with HMRC once the company begins trading, and for VAT if turnover crosses the threshold.
- 10. Separately pursue a UK business bank account — this is a commercial banking decision, not a legal requirement, and several UK fintechs (Wise Business, Revolut Business, Tide, Airwallex) accept non-resident directors remotely, whereas traditional high-street banks often expect an in-person visit or UK residence.
Core Requirements
- At least one director who is a natural person aged 16 or over (residency/nationality irrelevant).
- At least one shareholder (member) — can be the same person as the director.
- A unique company name that isn't identical/too similar to an existing name on the Companies House register and doesn't contain restricted words.
- A UK registered office address — a genuine physical UK postal address in the same jurisdiction as incorporation; PO boxes alone have not been permitted since March 2024.
- A registered email address, required at incorporation since the March 2024 reforms.
- A director's service address (this one can be located anywhere in the world, including overseas) and a separately held residential address, which is kept private on the register.
- Memorandum of Association and Articles of Association — most non-resident founders simply use Companies House's standard 'Model Articles' template rather than drafting bespoke documents.
- Mandatory identity verification for all directors, PSCs (people with significant control), and LLP members — this rule took effect 18 November 2025 for new appointments; existing officeholders have until 18 November 2026 to comply. It can be completed entirely remotely (online via a biometric passport, or through a Companies-House-Authorised Corporate Service Provider) or in person if the director happens to be in the UK.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
- 1.gov.uk
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Data last updated July 2026 · Verify anything important.