How to Form a UK LTD Company

Establishing a UK Limited Company (LTD) offers a business owner the opportunity to create a presence in the UK that is tax-efficient, credible, and legally protected.

Creating a UK LTD company allows you to enter and do business in one of the most reputable business economies. Furthermore, the UK is the world’s six largest economies and has one of the most simple registration processes and business maintainers, Companies House.

In this guide, Bizstartz covers the information you need, including the details of forming a UK Ltd, compliance after registration, and what ongoing legal requirements you need to fulfill.

What is a UK Limited Company (LTD)?

A company that is registered in the UK as a Limited company is a business structure that is separate and legal entity from its owner and directors. The company records are incorporated and maintained by a government body called Companies House.

If you register as a Private Limited Company (LTD) your business becomes an independent legal entity. This means;

• The company can own property, have the ability to enter into contracts, and also have the ability to sue or be sued in its own name.
• Finances of the shareholders and the company are separate.
• The liability of shareholders is limited and protected to the value of their shares. This means that their personal assets are safe from the company debts.

To illustrate, let’s say your company goes bankrupt owing £10,000 and you own £100 worth of shares. Your personal loss is limited to £100.

This is why LTD company structures are ideal for those entrepreneurs that appreciate the additional professionalism and investment opportunities that come with the structure.

There are two primary types of limited companies offered in the UK:

• Private Company Limited by Shares (LTD): the most common private limited company structure offered in the UK and is appropriate for businesses aimed at making a profit.
• Private Company Limited by Guarantee: more common for registered charities and not for profit organizations.

For most of the Bizstartz clients, the model “Limited by Shares” best meets their business goals.

Why UK Limited Company? Benefits for Entrepreneurs and Non-Residents

There are many benefits of registering a UK LTD, especially for international business owners intending to expand into the UK, or to Europe. It’s worth considering because of:

1. Limited Liability Protection

The company exists as separate a legal entity. Your personal savings, home and other assets are not at risk from your business debts and liabilities, which provides peace of mind and reduces risk.

2. Professional Credibility

Trust is earned and UK registered companies are seen as more trustworthy businesses. “LTD” after your business name signals you operate a business under UK law, which is one of the most transparent and business-friendly jurisdictions in the world.

3. Access to Global Markets

Having UK company status means trading globally, invoicing in different currencies, and building cross-border business connections. Many payment processors, marketplaces (such as Amazon UK), and international suppliers enjoy working with UK-registered businesses.

4. Tax Efficiency

As of 2025, UK Corporation Tax (currently 25% for most companies) will be lower than some personal income tax rates. Plus, most dividends are taxed less than taxed income, increasing tax efficiency. You will also lower taxable income and profits through legitimate business expenses.

5. Simple Registration

After providing proper information, LTD companies will be registered in no more than 24 hours. This is all thanks to the UK electronic incorporation system.

6. Non-Resident Friendly

The UK system for company registration, the domicile and residence rules, and the limited company management system, unlike some other countries, means you don’t set foot or live in the UK.

You can register and run your company as the director, hire business management agents like BizStartz to run the day-to-day affairs, and run it all from anywhere in the world.

Step-by-Step Guide to Forming a UK LTD Company

Step 1: Choose the Right Company Structure

Most small to medium-sized businesses select a Private Limited Company (LTD). It’s flexible, easy to manage, and allows full foreign ownership.

Step 2: Create a One-of-a-Kind Business Name

Your business name has to be one-of-a-kind and not already on the Companies House database. Also, make sure to add “Limited” or “Ltd” to the end of the business name.

Make sure to avoid words like “Royal” or “British” or any words that make it sound like it is connected to the government unless you have authorization.

Tip: You can check the Companies House name availability checker to see if it is free.

Step 3: Make Sure You have a Registered Office Address in the UK

So that you have a registered office address, you must have a UK LTD. This address is the official place to which government and legal documents are sent.

If you are not a UK resident, you can still make use of the registered office service offered by Bizstartz’s partners.

For the address, you must have:

• A physical address in the UK, not a PO Box.
• In the same jurisdiction where the entity is registered (England & Wales, Scotland, or Northern Ireland).
• And it must be available for the public to view on the Companies House website.

Step 4: Take Care of the Directors and the Shareholders

• You must have at least one director, and he or she can be 16 years or older.
• You must also have at least one shareholder (the same person can be both a director and a shareholder).
• You are managing the everyday activities of the entity as a director, and as a shareholder, you own the entity.
• Also, there are no restrictions on nationality or residence.

You will also need to determine who the Persons with Significant Control (PSC) are, the people who own or control more than 25% of the shares or voting rights.

Step 5: Decide Your Share Capital

In the UK, LTD companies have no minimum capital requirements, so you can begin with as little as £1 per share.

Common: 100 shares at £1 each.

This will determine the ownership percentages and how much each person will be paid in dividends.

Step 6: Prepare the Articles of Association

This is the governance document that will describe how your company shall be administered including directors’ powers, share transfers, and the rules of meetings.

You can use the standard “Model Articles” available on Companies House or Bizstartz can help you customize them to better fit your business structure.

Step 7: Choose Your SIC Code (Business Activity)

The SIC (Standard Industrial Classification) code is how you determine the primary business activity for your company. You will choose at least one code for when you are registering your company.

For instance:

• 47910 – Retail sale via mail order houses or via the Internet.
• 62012 – Software development for business and domestic use.

Step 8: Submit Your Application to Companies House

You can directly register online via Companies House or for a quicker, supported setup, register through Bizstartz.

Information required includes:

• Company name
• Registered address
• Director(s) and shareholder(s) details
• Share capital and PSC info
• Articles of Association
• SIC code

Once submitted, Companies House typically approves the registration within 24 to 48 hours.

Step 9: Receive Your Certificate of Incorporation

When approved, you’ll receive an official Certificate of Incorporation, which confirms:

• The company’s legal existence
• Date of incorporation
• Company number

This document is crucial for opening bank accounts, signing contracts, and proving company ownership.

Post-Formation Legal Requirements

Once you form your UK company, you’re almost there. Here are the main compliance responsibilities you need to keep track of.

1. Register for Corporation Tax

You need to complete registration for Corporation Tax within 3 months of starting to trade. After that, it is all ongoing bookkeeping. Bizstartz can help you with this.

2. Open a Business Bank Account

To protect your company and your personal finances, you need a separate account. As a non-resident, you can open a UK bank account through online banks such as Wise, Revolut Business, or Bizstartz’s banking partners.

3. Maintain Statutory Registers

Every UK company must keep and maintain registers for:

• Directors
• Shareholders
• PSCs
• Share allotments

These must be available for inspection when requested, and are showcased at your registered office.

4. File a Confirmation Statement (Annually)

You must update Companies House concerning the changes to your company’s structure or shareholdings at least once every 12 months.

5. File Annual Accounts

You are required to file annual financial statements to Companies House as well as a corporation tax return to HMRC. And even if your company hasn’t traded, you still need to file a “dormant company” return. This is a common misconception.

6. Pay Corporation Tax

You need to pay the UK Corporation Tax (which is 25% as of 2025) on your business profits and your company tax return is due within 12 months of your company’s financial year-end.

7. Comply with VAT and PAYE (if applicable)

• You need to register for VAT if your turnover is over £90,000 in a 12 month period (or voluntarily for reclaiming input VAT).
• You will also need to register for PAYE (Pay As You Earn) and employee tax and NI systems if you employ people.

8. Keep Proper Bookkeeping and Records

You must keep records of all business financial transactions and other relevant documents such as invoices, receipts, and bank statements for a minimum of six years.

9. Renew Your Registered Office Service

Make sure you renew your virtual or registered address office service each year in order to avoid losing important government mail.

How Long Does It Take and How Much Does It Cost?

If you form through Bizstartz, the process is faster and includes:

• Registered UK address
  
• Digital company documents
  
• Corporation tax registration
  
• Guidance for non-resident directors
• Bank account assistance

Special Guidance for Non-UK Residents

Most of our clients at Bizstartz are outside of the UK and wish to use UK business infrastructure. Here are a few key points:

• You are able to incorporate a company without needing to visit the UK.
• However, you will need a UK address. You can use Bizstartz.
• You can usually set up a UK business bank account online.
• As a foreign national you can also fully own (100%) your company.
• At Bizstartz, we help you verify your documents and set up your share structure, and assist you in registering with HMRC.
• You may still have local tax obligations regarding your home country, Bizstartz can connect you with international tax advisors if necessary.

Common Mistakes to Avoid

• Forming a company with an already in use name.
• Failing to notify Companies House of changes to a director/shareholder.
• Failure to separate personal and company finances.
• Missing your deadlines for annual filings.
• Assuming you will not have tax obligations because you are a non-resident.
• Failing to have a UK address which will regularly receive the mail.

Bizstartz makes sure you do not encounter any of these traps.

Start Your UK LTD With Bizstartz

Bizstartz makes it easy to start a UK company for people living outside the UK.

Our packages include:

• UK company formation with Companies House.
• Registered office address in London.
• Digital company documents (PDF copies).
• Corporation tax registration with HMRC.
• An introduction to a non-resident bank account.
• You are provided with support for accounting and annual filings.

With Bizstartz, you can start your UK business remotely, legally, and with confidence.

Final Thoughts

Having a UK LTD gives your company a credibility reputation on a global scale and expands your business to new markets. The steps to take are uncomplicated, inexpensive and can be carried out all online.

With the help of Bizstartz, foreign business owners can set up a professional business presence in the UK and take advantage of one of the most esteemed business environments in the world.

👉 Ready to form your UK LTD?

Go to www.bizstartz.com today and let our professionals take care of everything from registration to tax setup and compliance.