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🇬🇧United Kingdom · Outside the EUSame-day registration · no capital requirement

Setting up a Ltd company in the UK — same-day registration, strong payment infrastructure

The UK is the fastest, lowest-cost way to set up a company abroad: there's no capital requirement, registration finishes the same day, and Stripe and PayPal work from day one. On the other hand, since 18 November 2025 identity verification has been mandatory for directors, and company information is public. This page covers both sides.

What's easy, what's hard?

The UK's ease is real, but an easy incorporation doesn't mean an easy business. The real challenges start after registration.

What is easy

Registration really is same-day

Companies House filing is electronic, and if your documents are ready, the company number arrives the same day. It's the fastest option among overseas jurisdictions.

No capital barrier

There is no statutory minimum capital; a company can be formed with a single £1 share. There's no capital to lock up, no bank deposit slip, and no capital-commitment tracking.

Payment infrastructure just works

Stripe, PayPal, Paddle, and Payoneer all support UK companies directly. It's the smoothest option for teams selling digital products and subscriptions.

No registration needed below the VAT threshold

VAT registration isn't mandatory unless taxable turnover exceeds £90,000. For new companies, this lowers both the administrative burden and the cost.

Strong corporate perception

A UK company is a familiar, trusted structure to global customers; it causes no friction in contract or vendor-approval processes.

!What is hard

Identity verification is now mandatory

Since 18 November 2025, directors and persons with significant control (PSCs) must verify their identity with Companies House. Without verification, an appointment can't be made — so a company can't be formed.

What we do: We handle the verification on your behalf, obtain your personal code, and add it to the incorporation application.

Company information is public

Director names, registered address, shareholding structure, and financial filings are viewable for free on the Companies House register. People who use their home address as the registered address often realize this too late.

What we do: With a service address and registered-address setup, we keep your home address off the public register.

A traditional bank account is hard to get

High-street banks typically require a branch interview or UK residency from directors living abroad. A rejected application is recorded and makes a second attempt harder.

What we do: We choose the institution that fits your profile, prepare the compliance file, and redirect you to an e-money institution if needed.

The cost of being outside the EU

Post-Brexit, the UK sits outside the EU. Your EU customers see you as a third-country supplier; selling goods brings customs declarations and import VAT into play.

What we do: If your customer base is EU-heavy, we compare it against an EU company like a Hungarian one and suggest a dual structure if it makes sense.

Filing discipline is unforgiving

Even with no activity, dormant accounts and a confirmation statement must be filed. A late filing triggers an automatic penalty and is recorded against the director.

What we do: We set up the filing calendar, remind you before deadlines, and handle the filing itself.
The most important change to know about in 2026

Companies House identity verification is now mandatory

Under the Economic Crime and Corporate Transparency Act (ECCTA 2023), as of 18 November 2025 all directors and persons with significant control (PSCs) of UK companies must verify their identity with Companies House. This applies to everyone, whether or not they live in the UK. Without verification, a new director can't be appointed — so a new company can't be formed either.

Who

Directors and PSCs

All directors, plus anyone who owns more than 25% of the company or otherwise controls it. Living in the UK isn't required — the obligation is the same for everyone.

When

For new appointments, before the appointment

Anyone appointed after 18 November 2025 must complete verification beforehand. For existing directors, the deadline depends on the company's next confirmation statement; the final cut-off is 18 November 2026.

How

There are three routes

Online via GOV.UK One Login, in person at a Post Office branch in the UK, or through an Authorised Corporate Service Provider (ACSP). From abroad, the third route is the most practical.

Result

Personal code

Once verification is complete, you're issued a personal code. This code is reported to Companies House separately for every company and every role.

If verification isn't done
The annual confirmation statement can't be filed; the company becomes unable to file.
You cannot be appointed as a director of new companies.
Fines and a director disqualification can follow.
The company can be struck off the Companies House register.
We carry out the identity verification on your behalf, obtain your personal code, and add it to the incorporation application. If you already have a UK company, we also check your verification deadline.Get identity verification support

The UK or another country? Comparison table

The four countries we compare against the UK most often. Click a column heading to go to that country's page.

Scroll the table sideways →
🇬🇧United KingdomLtd🇺🇸United StatesLLC🇭🇺HungaryKft🇪🇪Estonia🇦🇪DubaiFZ-LLC
Setup time
Same day
3–10 business days
5 business days
1–5 business days
2–4 weeks
Corporate tax
19–25%
Varies by state
9%
0% if undistributed
9% (above threshold)
Minimum capital
None
None
HUF 3,000,000
€2,500
Varies by zone
EU membership
No
No
Yes
Yes
No
Stripe / PayPal
Easy
Easy
Moderate
Moderate
Moderate
Bank account
Easy with an EMI, hard with a bank
Moderately difficult
Moderately difficult
Difficult
Moderately difficult
Best-fit profile
Fast start, global sales
US market, dollar collections
Sells into the EU, extracts profit
Keeps profit in the company
Gulf market, residency
UK or the US?
Both are strong on payment infrastructure. If you sell to US customers, an LLC creates less friction; if you sell globally with a European focus, a Ltd does.
UK or Hungary?
The UK starts fast and cheap but sits outside the EU. If your customer base is EU corporates, Hungary's EU VAT number becomes the deciding factor.
Why not Estonia?
Estonia is advantageous if you keep profit in the company, but banking is noticeably harder. Opening an account in the UK is, in practice, easier.

Incorporation process: registration is same-day

Companies House registration really does finish the same day. What determines the overall timeline is the identity verification before it and the banking stage after it.

StageWhat happens
Preliminary stepIdentity verificationDirectors and PSCs complete Companies House verification and obtain their personal code. Without this step, the registration application can't be filed.1–3 days
Day 0Structure and name decisionName availability is checked; the activity code (SIC), shareholding structure, and director and PSC details are determined.Same day
Day 0Registered address and emailA suitable UK address able to accept service is set up; the Companies House registered email address is submitted.Same day
Day 0–1Companies House registrationThe incorporation application is filed electronically; the company number and certificate of incorporation usually arrive the same day.Same day
Day 1–5Tax registrationsCorporation tax registration is completed; VAT registration is added if the threshold is met or needed, and PAYE registration if there's staff.2–5 days
Week 1–4Banking and accountingA bank or e-money institution account is opened; an accounting agreement is signed and a filing calendar is set up.2–4 weeks
Documents needed

Passport

Required for all directors and persons with significant control; also used in identity verification.

Proof of address

A utility bill or bank statement issued within the last 3 months; address history may be requested.

Company name and activity

2–3 alternative company names, plus the SIC code describing the business activity.

Shareholding structure

Number of shareholders, share count, and allocation; PSC status is determined from this.

Tax and annual obligations

Corporate tax in the UK isn't a single flat rate — it's tiered by profit. VAT registration isn't mandatory unless the turnover threshold is exceeded, which is a real advantage for new companies.

ItemRate / threshold
Corporate tax (small profits)19%Applies to profit up to £50,000.
Corporate tax (main rate)25%Applies to profit above £250,000; marginal relief applies in between.
VAT (standard rate)20%Reduced-rate and zero-rated goods and services also exist.
VAT registration threshold£90,000Registration isn't mandatory below the threshold; voluntary registration is possible.
Profit distributionCase by caseThe shareholder's country of residence and the relevant double-tax treaty are decisive.
Minimum capitalNoneA company can be formed with a single £1 share.

Annual calendar

Annual accounts are filed with Companies House; even with no activity, dormant accounts are required.
The confirmation statement is filed once a year; it can't be filed if director verification is missing.
The corporation tax return (CT600) is filed with HMRC and paid after the end of the accounting period.
If VAT-registered, periodic VAT returns are filed; if there's staff, PAYE submissions are filed monthly.

Don't skip the Turkey side

Full taxpayers resident in Turkey are required to declare profit distributions received from a foreign company. Controlled foreign company rules can also make the earnings taxable in Turkey under certain conditions.

Read the detailed guide

Who is the UK right for?

A summary of what we cover in the first half hour of consultation.

The right choice
New ventures that want to start fast without tying up capital.
Business models built on Stripe that sell digital products, SaaS, and subscriptions.
Consulting firms selling to global clients that want a recognisable corporate structure.
Teams whose first-year turnover will stay below the VAT threshold and who want to keep the administrative burden low.
Look at another country
Companies selling goods to EU corporate customers that need an EU VAT number and a reverse-charge setup.
Those who don't want their company information public — the Companies House register is open to everyone.
Structures that insist on a traditional bank account and won't accept e-money institutions.
Ventures that can't keep up with filing discipline and will set up and forget — even a dormant company accrues penalties.

Our clients who set up a company in the UK

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Frequently asked questions about UK company formation

Organized into six topics: incorporation, identity verification, banking, tax, e-commerce, and the Turkey side. Pick a topic or search directly.

29 questions