The United Kingdom (UK) is one of the most popular business destinations thanks to its strong economy, open legal system, and ease of doing business. Registering a company in the UK gives you access to global markets, investor-friendly regulations, and a simple setup process.

Why Register a Company in the UK?

The UK offers several advantages for business owners:

• Fast & Easy – Company can be registered online within 24 hours.
• Low Corporate Tax – the UK’s corporate tax rate is lower than many other European countries.
• Access to global markets – the UK is a global financial and business centre so it’s easier to trade internationally
• Strong Legal Protection – Well developed commercial laws and intellectual property protection.
• Business friendly policies – the UK offers grants, tax reliefs and funding options to encourage entrepreneurs

Types of Business Structures in the UK

Before you register a company you'll need to decide on the right business structure:

• Sole Trader – Best for freelancers and small businesses; owner personally liable for debts.
• Private Limited Company (Ltd) – Most popular structure – limited liability to shareholders.
• Public Limited Company (PLC) – for large businesses raising money on the stock market.
• Partnership – Two or more people share business ownership and responsibilities, and profits.
• Limited Liability Partnership (LLP) – Combines partnership and company status, with limited liability.
• Branch Office – foreign company expanding in the UK.

How to Register a Company in the UK

1. Choose a Company Name: It must not be the same as any name already on the Companies House register - it must not contain restricted words or phrases
2. Select a Business Structure: Decide whether you’ll register as a sole trader, Ltd, LLP or another legal entity, depending on your business needs.
3. Appoint Directors and Shareholders:

• A Ltd company must have at least one director (who must also be a shareholder).
• Be at least 16 years of age and not disqualified from managing a company

4. Register with Companies House:
All limited companies must be registered at Companies House, either online, through an agent or by post.

• Online Registration: £12 (completed within 24 hours)
• Postal Registration: £40 (may take up to 10 days)

5. Prepare and Submit Required Documents

• Memorandum of Association – signed document by shareholders to confirm intention to form a company
• Articles of Association – the company’s rules for managing itself
• Company Address – Registered office address in the UK (can be virtual office)

6. Obtain a Unique Taxpayer Reference (UTR) Number: After you’ve registered, HMRC will send a UTR number to your registered address.
7. Open a Business Bank Account: You’ll also need a UK business bank account to make company transactions. Some banks may ask for proof of business activity and an in-person verification.
8. Register for Corporation Tax and VAT:

• Corporation Tax: must be registered within 3 months of starting business
• VAT Registration: compulsory if turnover exceeds £90, 000 (as of 2024)

9. Comply with Employment and PAYE Requirements
If you’re employing staff, register with HMRC for Pay As You Earn (PAYE) and make sure you follow UK employment laws.

Taxation and Costs of Registering a Company in the UK

Corporate Tax Rates

• Main rate: 25% (for companies with profits over £250,000)
• Small profits rate: 19% (for companies with profits up to £50, 000)

Other Taxes to Consider

• VAT: 20% standard rate; 5% and 0% for certain goods and services
• Business Rates: local property tax for business which operate from commercial premises

Cost of Registering a Company

• Online registration: £12
• Postal registration: £40
• Same-day registration: £100

How EU Helpers Can Assist You

EU Helpers guides entrepreneurs through the process of company registration in the UK with expertise in legal compliance, document preparation, and administrative procedures. EU Helpers also helps with company name registration, tax setup, bank account opening, and VAT registration. With EU Helpers, entrepreneurs can overcome bureaucratic hurdles and focus on building their business.
The UK is still a great place to start a business with fast registration, business-friendly regulations, and global access. With the steps listed above and professional help from EU Helpers, business owners can get started and be up and running quickly.