v256.2 · business formation · GB · verified 2026-04
United Kingdom company formation
Entity types, formation timeline, costs, ongoing compliance, banking realities, and 2024-26 regime changes for incorporating in United Kingdom.
Corporate tax
25% main rate; 19% small-profits rate (profits <£50K); marginal relief £50K-250K
Formation time
24 hours standard (online via Companies House); same-day available
Min capital
GBP 0.01 minimum (typical issued share capital £1-100)
Director residency
No UK residency required for directors
Available entity types
Private Limited Company (Ltd) Public Limited Company (PLC) LLP Limited Partnership (LP) Scottish Limited Partnership (SLP) Branch (Establishment) Community Interest Company (CIC)
Formation costs & timeline
Cost range: GBP 50 Companies House standard filing (online); GBP 12 same-day. Service providers: GBP 50-500 incl. registered office + nominee.
Timeline: 24 hours standard (online via Companies House); same-day available
Common setup paths: Online via Companies House (£50, 24 hours). Service providers: 1st Formations, Made Simple Group, Rapid Formations, Companies MadeSimple — typically £30-200 incl. registered office service.
Rate landscape & compliance
| Corporate tax | 25% main rate; 19% small-profits rate (profits <£50K); marginal relief £50K-250K |
| Franchise tax | No franchise tax |
| VAT / GST | 20% VAT (standard) |
| Treaty network | 130+ |
| Shareholder residency | No UK residency required for shareholders |
| Public register | Companies House publicly displays directors + shareholders + filed accounts. PSC (Persons of Significant Control) register public since 2016. Beneficial Ownership transparency leader. |
| Annual filings | Annual Confirmation Statement (£13 online). Annual accounts (micro/small/medium/large categories). Corporation Tax Return CT600 within 12 months of accounting period end. |
| Substance requirements | No formal ESR-style substance test. HMRC scrutiny for treaty access requires actual UK management. CTA 2010 anti-abuse rules. |
Recent regime changes (2024-2026)
CT raised 19%→25% April 2023. Non-dom abolished April 2025. CGT rates raised Oct 2024 (10/20% → 18/24%). Companies House identity verification roll-out 2024-26. Pillar Two QDMTT from 2024.
Strengths
- 24-hour formation among the fastest globally
- 130+ treaty network — largest among major economies
- Patent Box 10% rate on qualifying IP income
- Substantial Shareholding Exemption (SSE) for holding company disposals
- Strong common-law tradition + English-language
- Companies House public transparency builds counterparty confidence
- EU customs union exit (post-Brexit 2021) means full sovereignty over rates
Drawbacks
- Corporate tax raised 19%→25% April 2023
- CGT raised to 18%/24% Oct 2024 Budget
- Public PSC register — no anonymity
- Post-Brexit complications for EU-cross-border supply
- Stamp Duty Land Tax surcharge for foreign buyers raised April 2025
- Non-dom regime ENDED April 2025 (replaced by FIG)
Typical uses & top industries
Typical uses:
Trading companies Holding companies (Substantial Shareholding Exemption available) IP licensing (Patent Box 10% rate) Fund vehicles (UK REIT, UK PFCP) LP/SLP for fund structures
Top industries:
Financial services Technology + fintech Pharma + life sciences Creative + media Professional services Real estate
Source: official United Kingdom registry/authority · Last verified 2026-04
See also: full business-formation directory