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UK Company Formation...

Everything you need to know about setting up in the UK.

UK Company Formation Wizard

Use our helpful tool to see what's required to set up your company in the UK.

UK Company Formation Wizard

Setting Up in The UK

A practical guide to what’s involved, and what you can expect to happen during this process.

Setting Up in The UK

FAQs

Get answers to commonly asked questions about company formation, accounting and taxes.

FAQs

Our Services...

From accounting to personalised telephone answering – everything your company needs to thrive in the UK.

UK Company Formation

Company formation, memorandum and articles registration and appointing Directors and Shareholders.

Legal Compliance

Covering various business operations such as company secretary, registered office, handling post and more.

Outsourced Finance Office

Complete administrative support for your UK company designed especially for foreign businesses.

Bank Account Opening

Operate from day one with a virtual Bank account that can be opened immediately.

Virtual Office Service

UK business address, personalised phone answering service, mail handling, access to the meeting room.

Advisory Services

Advice on formation, directorship and other relevant rules and regulations related to setting up in the UK.

Brokerage Services

A single entry point to services frequently required in the early stages of company development.

Explore All Our Services

About EBS...

Find out more about EBS, how we operate and what we stand for – or simply get in touch with us.

Who we are and how we work

We work exclusively with foreign-owned businesses in the UK and understand the problems they face.

About EBS

Our Team

Behind every successful business is a great team - meet the team that makes up EBS.

Meet the Team

Contact Details

Our address and contact details. If you need to get in touch with us, you can email us here.

Contact Information

Who we work with...

Explore our case studies and see how we work with foreign companies, helping them set up in the UK.

Latest Case Studies...

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Case Studies by Location

ArgentinaAustriaChileColombiaDenmarkFinlandFranceGermanyMexicoPolandSwedenUnited StatesUruguay

What's happening in the Industry

We’ve created and curated some helpful news articles relating to EBS and the industry in general.

Latest News...

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Helpful Guides and Documents

We’ve created some helpful guides and documents covering topics such as Britain’s History and Geography, The Legal System, Formalities and more. 

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Get in touch with us...

We’d love to hear from you! – if you have any questions, please get in touch with us on phone, email or social media, and our friendly team will be pleased to help.

Head Office

EBS Ltd, Innovation Centre, Gallows Hill, Warwick, CV34 6UW

+44 (0)1926 217700

info@ebs.ltd.uk

London Office

EBS Ltd, 118 Pall Mall, London, SW1Y 5EA

+44 (0)203 696 6688

info@ebs.ltd.uk

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Setting Up in The UK

A Practical Guide

Where do you start?

Setting up a company can be confusing and can involve many steps. EBS can help you establish in the UK Market easily.

The following is a quick guide to what’s involved in establishing a UK company, and what you can expect to happen during this process.

EBS will check the Company Names Register for your preferred name, form the Limited Company of your choice, deal with the registration of the Memorandum and Articles and appoint the first Directors and Shareholders.

Ready to get started? Give us a call or send us an email.

Get in touch with us

In this section

Establishing a Company in the UK

Each UK limited company needs…

A Company Name

1 Shareholder

Shareholders can be a person or another company.

1 Director

Directors can be of any nationality and can live in any country.

Identify the Directors and any person ultimately controlling 25% or more.

A Company Can...

  • Be formed in 2 days
  • Trade on the day it is formed
  • Govern itself totally on paper – no physical meetings
  • No other registrations needed unless undertaking a regulated trade

A Company Does NOT need to...

  • Visit the UK
  • Specify the trade in the Constitution (‘Articles’)

Registered Office & Company Secretary

Registered Office

  • Every company must have an official registered office address.
  • For companies formed in England, the Registered Office must be in England.
  • Registered office can be different to the place where the company normally does business.
  • Any official letters must be sent to Registered Office if they are to be effective.
  • Registered office can’t be a P.O Box address.

Company Secretary

  • Keeps the Statutory Books up to date as required by The Companies Acts.
  • Files appointments and resignations of Directors or Secretaries with Companies House.
  • Files Changes of Directors details, usually change of address, with Companies House.
  • Completes and files the Confirmation Statement to Companies House.

Opening a Bank Account in the UK

Opening a bank account in the UK has become increasingly difficult.

There is no single solution, but we have taken a holistic approach to remove as many barriers as we can.

Checklist

When setting up a bank account, consider the following:

  • Go to the Bank with a dedicated inward-investment team
  • Approach small customer-focussed fintech ‘payment service providers’
  • Try a bank specialising in particular countries or industries
  • Make the company structure as simple as possible to remove any risk

EBS Client Bank Account

As EBS is liable for the ongoing monitoring of the company’s bank transactions, we can only provide this service if certain conditions are met and remain in place.

In summary, these are the criteria:

  • The company has its Registered Office at our EBS address.
  • Has a UK limited company.
  • Appoints EBS Corporate Services Ltd as its Company Secretary.
  • Has all its bookkeeping and management accounts provided by EBS.
  • Appoints EBS to manage the VAT and Payroll services if they are required.
  • Appoints EBS to prepare its Annual Accounts and Tax compliance.

UK Taxes

Corporation Tax

0 %

Tax Rate

  • The 25% main rate is payable by companies with taxable profits above £250,000
  • Payable 9 months after year end.
  • Losses carry forward without limit, or back one year for a refund.
  • No tax on dividends received unless from a tax haven.
  • No withholding tax on dividends paid.
  • Capital allowances.

VAT

0 %

(unless exempt)

  • Register if turnover exceeds GBP85k in any 12 months.
  • 20% on most things.
  • Pay every 3 months.
  • Mistakes under GBP10k – just correct next time.
  • First late payment in any 12 months – no penalty.

Shares

NO
TAX

on issue of new shares

  • 0.5% Stamp Duty on transfer of shares. Exempt if GBP5 or less

Research and Development

Tax credit of 186% of the approved costs, which can be carried forward or sold (surrendered) for cash payment of 14.5% of the loss (only 10% can be claimed from 1st August 2023).

Qualifying R&D costs are costs relating to an R&D project as follows:-

1) Expenditure incurred during the year that are likely to qualify for R&D Tax Relief, including-

  • Subcontractors
  • Software used for the R&D, including Software as a Service. From April 2023 storage and web hosting costs can also be part of the claim.
  • Consumable items including, stationery, research dossiers and sundry goods that are “used up” in the R&D

2) UK Employee and directors’ wages, UK employers NI, employers pension contributions. If an employee only part of their time on R&D then can claim the percentage of time each person spent on R&D.

3) Reimbursed travelling expenses relating to R&D work that are paid by an employee personally that are reimbursed by the company. Employee expenses paid directly by a company credit card or company bank payment cannot be claimed as they are not “reimbursed”.

First year Capital Allowances and Super Deduction

First Year Capital Allowances

  • The Annual Investment Allowance remains at GBP 1 million for investments made up to 31st March 2023, when it falls back to GBP 200k per year.
  • This means that the first GBP 1 million of investment in capital equipment can be written off against profits in full, and any unused tax losses carried forward indefinitely, or back for one year.
  • Investments over GBP 1 million can be claimed at the usual rates of 18% for most items, 6% for items with a life of more than 25 years, or 100% for individual items with a cost of GBP 1000 or less.
  • On the sale of the item there is a Balancing Charge to recover any excess of the tax allowances over the actual loss.

Super Deduction

  • This applies for items purchased up to 31st March 2023.
  • The tax allowance is 130% of the actual cost in the first year for most assets, and 50% for assets with a life of 25 years or more.
  • For items where the Super Deduction has been claimed, the actual proceeds of any sale are increased by 30% to calculate the Balancing Charge
  • There are limits of course. No second-hand equipment, no cars and no assets to be leased out.

Country Comparison

Country Formation Time Share Capital Company Registration Company Tax Due month
United Kingdom
2 days
1 GBP
300 GBP
19-25%
Once per year
Germany
5 weeks
25000 EUR
1500 EUR
26 – 36%
4 times per year
Spain
1 month
3000 EUR
900 EUR
25%
3 times per year
Netherlands
1 week
0.01 EUR
1500 EUR
15%-25.8%
5 months

Dividend Withholding Tax

UK Germany Netherlands Spain Poland
Poland
NIL
5%
7%
5%
19%*
India
NIL
10%
10%
15%
10%
China
NIL
5-15%
5-15%
5%
10%
USA
NIL
5%
NIL
5%
5%

NOTE: Ownership restrictions apply in all cases where rate is 10% or less.
* Certain exemptions for payments under PLN 2 million a year can be applied for

Get in touch with us...

We’d love to hear from you! – if you have any questions, please get in touch with us on phone, email or social media, and our friendly team will be pleased to help.

Warwick Office

EBS Ltd, Innovation Centre, Gallows Hill, Warwick, CV34 6UW

+44 (0)1926 217700

info@ebs.ltd.uk

London Office

EBS Ltd, 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ

+44 (0)203 696 6688

info@ebs.ltd.uk

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© Copyright 2023 EBS Ltd  |  All Rights Reserved  |  Registered in England number 2936613

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Martin Williams 1

Martin Christopher Williams is licensed and regulated by AAT under licence number 1005209. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and EBS Ltd is supervised by AAT in this respect.

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Kulvindar Badh

Kulvindar Kaur Badh is licensed and regulated by AAT under licence number 1006125. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and EBS Ltd is supervised by AAT in this respect.

Warwick Office

EBS Ltd, Innovation Centre, Gallows Hill, Warwick, CV34 6UW

Phone: +44 (0)1926 217700

Email: info@ebs.ltd.uk

London Office

EBS Ltd, 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ

Phone: +44 (0)203 696 6688

Email: info@ebs.ltd.uk

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