In short
A private limited company (Ltd) needs at least one director and one shareholder (the same person is fine), a UK registered office address and articles — no minimum capital and no notary. Online incorporation costs £100 since 1 February 2026, and since 18 November 2025 directors and people with significant control must verify their identity. Corporation tax is 19% on profits up to £50,000 and 25% above £250,000. A UK business registers for VAT above £90,000, but a business based outside the UK must register from its first UK sale. The UK withholds no tax on dividends. A company does not give you a visa — founders use the Innovator Founder visa.
UK company: key facts
Last verified 28 September 2026| Private limited company | At least one director and one shareholder (can be the same person), a UK registered office address and articles; no minimum capital and no notary# Source: Set up a limited company (GOV.UK) |
|---|---|
| Companies House fee | £100 to incorporate online and £50 for the annual confirmation statement (since 1 February 2026)# Source: Increase of Companies House fees (DWF) |
| Identity verification | Since 18 November 2025 new directors and people with significant control must verify their identity — free via GOV.UK One Login, or through an authorised agent from abroad# Source: Identity verification: implementation from 18 November 2025 (Shoosmiths) |
| Corporation tax | 19% on profits up to £50,000, 25% above £250,000, with marginal relief in between (thresholds shared with associated companies)# Source: Corporation Tax rates and reliefs (GOV.UK) |
| VAT | 20% standard; UK businesses register above £90,000 turnover, but a business based outside the UK must register from its first UK taxable supply# Source: VAT registration: when to register (GOV.UK) |
| Employer National Insurance | 15% on pay above £5,000 a year (2026/27), with an Employment Allowance of up to £10,500# Source: Rates and thresholds for employers 2026 to 2027 (GOV.UK) |
| Dividend tax | £500 tax-free, then 10.75%, 35.75% or 39.35% depending on your band (2026/27); the UK withholds no tax on ordinary dividends# Source: Tax on dividends (GOV.UK) · PwC Tax Summaries – UK: Withholding taxes |
| US tax treaty | US–UK treaty of 2001 with a 2002 protocol; its saving clause lets the US tax its citizens as if there were no treaty# Source: Senate Executive Report 108-2: Tax convention with the United Kingdom |
| US entity classification | A private Ltd can elect its US tax classification (Form 8832); only a PLC is a per se corporation# Source: 26 CFR 301.7701-2 (Cornell LII) |
| US anti-deferral tax | GILTI is called NCTI from 2026; the high-tax exclusion needs an effective rate above 18.9% — the 25% main rate clears it, but the 19% small-profits rate is borderline once reliefs apply# Source: 26 U.S.C. s.951A (Office of the Law Revision Counsel) · Greenback Tax Services – GILTI high-tax exception |
| US filings for owners | US owners and officers of a UK company usually file Form 5471, plus an FBAR when foreign accounts exceed $10,000# Source: IRS - About Form 5471 |
| Innovator Founder visa | A new business endorsed by an approved body; no minimum investment; 3 years, with settlement possible after 3 years; £1,357 plus a £1,000 endorsement fee# Source: Innovator Founder visa (GOV.UK) |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
UK company law is the same for every founder, so Canadians, Australians, New Zealanders and EU citizens form a Ltd exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in the UK | A company does not give you a visa. Founders who want to live in the UK use the Innovator Founder visa or another route. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Tax treaty with the UK | The UK has income tax treaties with the US and many other countries, including Canada, Australia and New Zealand. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
UK Company Formation in Numbers
Why the UK
Why Americans Register Companies in the UK
Everything happens online and in English, under a legal system close to the US one. There is no minimum capital and no notary, and the UK withholds no tax on dividends you pay yourself.
Two things changed recently: the fee rose to £100 in February 2026, and every director and person with significant control must now verify their identity. And since Brexit, a UK company is outside the EU single market.
Business Structures
Which Entity Type Is Right for You?
Private Limited Company
Ltd
At least one director and one shareholder (can be the same person), a UK registered office and articles. No minimum capital.
- Min. capital
- None
- Liability
- Limited to shares
- US tax
- Eligible entity (can elect)
Limited Liability Partnership
LLP
Used by professional firms; members are taxed on their share of profits.
- Min. capital
- None
- Members
- At least 2
Public Limited Company
PLC
For companies offering shares to the public.
- US tax
- Per se corporation
Sole Trader
Self-employed
No company — you register with HMRC for Self Assessment. Needs the right to work in the UK.
- Liability
- Unlimited
Tax Environment
UK Corporation Tax Framework (2026)
Companies pay 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between. The thresholds are shared between associated companies and reduced for short periods.
Dividends are taxed at 10.75%, 35.75% or 39.35% after a £500 allowance (2026/27) for UK residents. The UK itself withholds no tax on ordinary dividends, including those paid to US shareholders.
US citizens and Green Card holders are taxed on worldwide income. Owning a UK company usually means Form 5471, and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI is called net CFC tested income (NCTI). The high-tax exclusion needs an effective foreign rate above 18.9% — the 25% main rate clears it, but at the 19% small-profits rate reliefs can push you below. A private Ltd can elect its US classification (Form 8832); a PLC cannot. The US–UK treaty's saving clause lets the US tax its citizens as if there were no treaty. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in the UK
Registration is online with Companies House and usually quick. No notary is needed.
Choose the structure with your US tax adviser Decision
Ltd, LLP or a UK branch — the choice changes how the US taxes you.
Verify your identity Required
Every director and person with significant control verifies once — free through GOV.UK One Login, or through an authorised corporate service provider if you are abroad.
Pick a name and a UK registered office Name check
Check the name on Companies House and arrange a UK registered office address.
Prepare articles and the share structure No notary
Most small companies use the model articles. Decide shareholders and the SIC code for your activity.
Incorporate online £100
File with Companies House and pay £100. You receive a company number and certificate.
Register with HMRC After incorporation
Register for Corporation Tax, and for VAT above £90,000 turnover — or from the first UK sale if the business is based abroad.
Open a business bank account Banking
Banks run full checks on non-resident founders — allow time.
Costs & Fees
What Does It Cost to Register a Company in the UK?
| Cost item | Notes | Amount |
|---|---|---|
| Incorporation | Online at Companies House (since 1 February 2026). | £100 |
| Confirmation statement | Filed every year. | £50 |
| Identity verification | Free via GOV.UK One Login; agents charge their own fee. | £0 / agent fee |
| Share capital | No legal minimum. | from £0.01 |
Fees from Companies House (February 2026). Source: DWF: Companies House fees 2026 · Shoosmiths: identity verification
Ongoing Obligations
Post-Registration Requirements
Confirmation statement
File every year with Companies House (£50).
Accounts and Corporation Tax return
File annual accounts with Companies House and a Corporation Tax return with HMRC.
People with significant control
Keep the PSC register up to date; new PSCs must verify their identity within 14 days.
VAT and payroll
File VAT returns digitally once registered, and run PAYE if you pay salaries (employer NIC 15% above £5,000).
Expert Notes
What Americans Should Know Before Registering in the UK
A company is not a visa
Owning a UK company does not let you live or work in the UK. Founders use the Innovator Founder visa (endorsement, no minimum investment) — see our UK overview.
Verify identity before you incorporate
From abroad you may need an authorised corporate service provider — build that into your timeline.
No VAT threshold for foreign businesses
A business based outside the UK must register for VAT from its first UK taxable supply.
The 19% rate and NCTI
Small UK profits taxed at 19% sit just above the 18.9% US threshold — model it with your US adviser.
Post-Brexit EU access
A UK company has no EU passporting — selling into the EU means customs and EU VAT rules.
A UK company is right for you if…
- You want an English-language, online, low-cost company
- You can verify your identity and use a UK registered office
- You have modelled US NCTI and Form 5471 with a US adviser
- You understand a company does not give you a visa
- You sell mainly to UK or global customers rather than the EU
FAQ
Frequently asked questions
How much does it cost to register a UK company?
£100 online at Companies House since 1 February 2026, plus £50 a year for the confirmation statement.
Can I register a UK company from the US?
Yes. You need a UK registered office address and must verify your identity — through GOV.UK One Login or an authorised corporate service provider.
What is UK corporation tax?
19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between (financial year 2026).
When must a UK company register for VAT?
A UK business registers when turnover passes £90,000 in 12 months. A business based outside the UK must register from its first UK taxable supply.
Does a UK company help me get a visa?
No. You need a separate visa, such as the Innovator Founder visa for an endorsed new business.
United Kingdom
Everything about moving to the UK
Company formation · other countries
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Ready to Register Your UK Ltd?
We connect you with trusted UK accountants and formation agents — from identity verification and Companies House to HMRC, VAT and payroll.