How do you set upa company in the UK.
You incorporate a private company limited by shares with Companies House, appoint a director, give it a UK registered office, then register it with HMRC for corporation tax and PAYE. Teamed does all of it and runs the company afterwards.
The UK at a glance
The facts most people need first
The UK is the fastest large economy in Europe to put a company in. Incorporation is digital, usually done within a day, and the fee is published. What is not obvious is the tax position afterwards, which is where most of the surprises live.
- Usual company type
- Private company limited by shares, a Ltd
- Registry
- Companies House
- Directors needed
- At least one, who must be a real person
- Company secretary
- Not required for a private company
- Minimum share capital
- None in practice, commonly one pound
- Incorporation, filed digitally
- £100
- Confirmation statement, online
- £50 a year
- Corporation tax, main rate
- 25%
The one rule that catches people out
Will you actually pay the small company rate
Most guides tell you the UK has a 19% small profits rate for companies earning 50,000 pounds or less, and a 25% main rate above 250,000, with Marginal Relief in between. All true, and for a group of companies it can be badly misleading.
Both thresholds are divided by the number of associated companies. If your new UK company is one of five in a group, its small profits threshold is not 50,000 pounds. It is 10,000. The upper threshold drops the same way, from 250,000 to 50,000, so a modest UK subsidiary can be paying the main rate on almost everything it earns.
The thresholds also reduce proportionately for a short accounting period, which the first year of a new company almost always is. So the very first tax bill is the one most likely to land higher than the plan assumed.
Two rates, and which one you pay depends on your group
The headline numbers are real. They are just not the numbers a company inside a group is measured against.
19% up to 50,000 pounds of profit, 25% above 250,000, Marginal Relief between. The thresholds are the published ones.
Both thresholds divided by how many companies are associated. Five companies means 10,000 and 50,000, and the main rate arrives far sooner.
Before you file
What you need to have ready
Less than almost anywhere else, which is why the UK is a common first European company. The filing takes minutes once the details exist.
You need a company name Companies House will accept, at least one director who is a real person rather than another company, and at least one shareholder. A private company does not need a company secretary, which removes a requirement Ireland and several other jurisdictions still impose.
You need a registered office address in the UK where official post will reach you. It goes on the public register, so a home address is a decision rather than a default. You need to state your share capital, and there is no minimum, so most companies are formed with a nominal amount.
Directors and people with significant control also have to verify their identity. That requirement is comparatively new and is the step most likely to add days to what is otherwise a same-day process, particularly for people outside the UK.
How it runs
How long does it take to set up a UK company
The incorporation itself is usually done within a day, and there is a same-day service if you need it. What sets the real timeline is identity verification beforehand and the bank account afterwards.
Identity verification
Directors and people with significant control verify who they are. For people outside the UK this is the step that decides your start date.
Name, directors and registered office agreed
A name Companies House will accept, at least one real person as director, and a UK address that appears on the public register.
The company incorporated
Filed digitally for 100 pounds, usually registered within a day. Same-day service is available for 156 pounds.
HMRC registrations
Corporation tax, then PAYE so you can run payroll, then VAT if you are over the threshold. Payroll cannot run before the PAYE reference exists.
Bank account
The slowest and least predictable step. Start it the week you incorporate rather than the week you need it.
Setting up your own entity takes anywhere from a few weeks to several months, depending on the country's registry and how fast you can open a local bank account. The UK sits at the fast end, and the bank is almost always the long pole.
What it costs
How much does it cost to set up a UK company
The state fee is 100 pounds to incorporate digitally and 50 pounds a year to keep the company on the register. Worth noting that the incorporation fee doubled in recent years, so any guide quoting 50 pounds to incorporate is out of date.
| What | Amount |
|---|---|
| Incorporation, filed digitally | £100 |
| Incorporation, paper | £124 |
| Incorporation, same day | £156 |
| Confirmation statement, online | £50 |
Market estimate
£1,000 to £2,500What the market charges to form the company and handle the HMRC registrations. Not a Teamed price.
Before you commit
Sometimes an employer of record is the better fit
The UK is so easy to incorporate in that it often happens before anyone has asked whether it should. A company still brings directors with statutory duties, an annual filing calendar and a corporation tax position that all outlive the decision to open it.
If the team here is small, still changing shape, or you are testing whether the market works, an employer of record can be the better answer, and it is a fair one rather than a lesser one.
Teamed's employer of record in the UK is a flat £479 per employee per month, with zero FX mark-up in any currency pairing and one invoice at the end of it. Contractors, employer of record and your own entity all run on one platform, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work, not a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it for the UK.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for corporation tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
In the UK that matters a little more than elsewhere, because Teamed employs through its own local entity rather than a partner. The people who would run your company are the people already running ours.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions people ask before they register
How much does it cost to register a UK company?
100 pounds filed digitally, 124 pounds on paper, or 156 pounds for the same-day service. The digital fee rose from 50 pounds, so older guides understate it.
Is there a minimum share capital?
No. Most private companies are formed with a nominal amount, commonly one pound.
Do we need a company secretary?
Not for a private limited company. That requirement was removed and it is one fewer appointment than Ireland and several other jurisdictions need.
Will we pay 19% or 25% corporation tax?
It depends on profit and on how many associated companies you have. The 50,000 and 250,000 pound thresholds are divided by the number of associated companies, so a company in a group of five is measured against 10,000 and 50,000 instead.
Can a non resident be a director?
Yes. There is no residency requirement for a UK director. Everyone appointed does have to verify their identity, which is usually the step that adds time for people outside the UK.
Sources
- Companies House, published fee schedule
- HMRC, Corporation Tax rates and Marginal Relief
- Companies House, incorporation and registered office requirements
The rest of the the UK guides
Looking for a job in Entity Setup yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
