A UK private limited company (‘Ltd’) is one of the most accessible and globally credible structures for Indian entrepreneurs. There is no UK residency requirement for directors or shareholders, no minimum share capital, and incorporation is usually completed online within about 24 hours through Companies House. Corporation Tax runs from 19% to 25% on profits, and a UK ‘Ltd’ with a London address is recognised by banks and clients worldwide. A major change now applies: from 18 November 2025, directors and people with significant control must verify their identity. Samkhya handles the full incorporation and identity-verification process.
Most international founders set up a private company limited by shares (‘Ltd’) under the Companies Act 2006, registered at Companies House, the UK registrar. There is no requirement for any director or shareholder to be a UK resident or national, so the company can be owned and run entirely from abroad, but a physical UK registered office address is mandatory (PO-box-only addresses have been banned since March 2024). Incorporation is filed online using Form IN01 and is usually approved within 24 hours, with just one share of GBP 1 and no minimum capital. A significant change applies from 18 November 2025: under the Economic Crime and Corporate Transparency Act 2023, all new directors and people with significant control must verify their identity before they can be registered.
A UK company offers strong advantages:
A UK company also has points to plan for:
To incorporate a UK company, you generally need:
The UK is open to foreign founders:
UK companies are registered at Companies House, the official UK registrar, under the Companies Act 2006. The process is to choose a compliant name, prepare a Memorandum and Articles of Association, and file Form IN01 online with details of the directors, shareholders, share capital, registered office, and people with significant control. Online applications are usually processed within 24 hours (a same-day option is available), after which Companies House issues the Certificate of Incorporation and a company number. From 18 November 2025, identity verification under the ECCTA must be completed, directly through GOV.UK One Login or via an Authorised Corporate Service Provider, before a new director’s appointment or incorporation can be registered. The online incorporation fee rose from GBP 50 to GBP 100 on 1 February 2026.
For Directors and Shareholders:
For the Company:
UK company formation follows a clear sequence:
Setting up your UK company with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team coordinates the registered office, identity verification, IN01 filing, and HMRC registrations.
A UK company must keep up with annual and tax compliance:
UK Corporation Tax is charged on profits, not turnover, at 19% for profits up to GBP 50,000 and 25% for profits above GBP 250,000, with Marginal Relief tapering the rate between the two thresholds (an effective marginal rate of about 26.5%). Corporation Tax is due 9 months and 1 day after the end of the accounting period, and the company must register with HMRC within three months of starting to trade. VAT applies at a standard rate of 20%, with registration mandatory once taxable turnover exceeds GBP 90,000 in any rolling 12-month period; a non-established business making UK supplies must register immediately. A UK company whose central management and control sits outside the UK may not be UK tax resident, which requires specialist advice, and non-resident directors should consider their own home-country tax position. Indian founders should also review Indian tax and FEMA implications of owning the UK company.
| Feature | Sole Trader | Limited Company (Ltd) | LLP |
| Legal Status | No separate entity. | Separate legal entity. | Separate legal entity. |
| Liability | Unlimited personal liability. | Limited to shares. | Limited to contribution. |
| Taxation | Income Tax on profits. | Corporation Tax 19-25%. | Partners taxed individually. |
| Owners | One individual. | 1+ shareholders, any nationality. | 2+ members. |
| Credibility | Lower. | High; globally recognised. | Professional partnerships. |
| Registered At | Not at Companies House. | Companies House. | Companies House. |
| Best For | Small local trade. | Most businesses and founders. | Professional firms. |
Do I need to live in the UK to set up a company?
No. There is no UK residency or nationality requirement for directors or shareholders, so a UK company can be owned and run from abroad. You do need a physical UK registered office address.
What is the new identity verification rule?
From 18 November 2025, under the ECCTA 2023, all new directors and people with significant control must verify their identity with Companies House, via GOV.UK One Login or an Authorised Corporate Service Provider, before they can be registered.
How much is UK Corporation Tax?
It is 19% on profits up to GBP 50,000 and 25% on profits above GBP 250,000, with Marginal Relief in between. It is charged on profits, not turnover.
How long does UK incorporation take?
Online incorporation through Companies House is usually completed within about 24 hours, with a same-day option available.
When do I need to register for VAT?
Registration is mandatory once taxable turnover exceeds GBP 90,000 in any rolling 12-month period; the standard VAT rate is 20%. A non-established business making UK supplies must register immediately.
Can a non-resident open a UK business bank account?
Opening a high-street account remotely can be difficult, so many non-resident founders use digital banks such as Wise or Revolut alongside their UK company.
