UK Limited Company Compliance Requirements: The Complete 2025 Guide for Entrepreneurs

The UK remains one of the most trusted and transparent business jurisdictions in the global context. Its legal system is stable, and company formation is efficient, making the UK a global magnet for entrepreneurs and investors.

Limited Companies (LTDs) registered in the UK, whether the entrepreneurs or investors are physically in the UK or abroad, gain credibility, competitive taxation, and the opportunity to trade internationally.

Nonetheless, formation is merely the start. Every Limited Company registered in the UK has legal, fiscal and business administrative duties that are continual and mandatory.

They are not optional. Your business must keep “good standing” with Companies House and HM Revenue & Customs (HMRC).

It is also important to note that these duties, should they be ignored, can culminate in substantial penalties, being barred from company directorship, or even company closure.

To help you in this area, the following guide to compliance for UK Limited Companies is divided into chapters and will keep you compliant regardless of whether you are managing your business from the UK or abroad.

Annual Confirmation Statement (CS01)

The Confirmation Statement, formerly the Annual Return, is essential for compliance for any UK Limited Company, perhaps the simplest one at that. It communicates to Companies House that the documents they have on record do not need updating.

What it Holds

The Confirmation Statement also provides or confirms:

• the company’s registered office address
• the names and service addresses of directors
• the details of shareholders and the shareholding structure
• Persons with Significant Control (PSC)
• the company’s business activity (SIC code)

Even when there’s no change, you have to confirm these details at least annually.

Filing Deadlines and Fees:

• Every 12 months is the legal requirement, however, if the information changes, it can be filed more often.
• The cost is £13 when filed online and £40 for paper submissions.
• It’s due one year from the incorporation date and annually from there or on the date of the last Confirmation Statement.

Companies that do not submit this statement can be struck off the record.

Importance:

The Confirmation Statement keeps your company’s reputation and transparency intact. It also helps the government check that the company’s ownership and structure is not misused for illegal activities.

Annual Accounts (Financial Statements)

Every Limited Company in the UK, whether it is dormant or actively trading, must prepare and submit annual financial accounts to Companies House.

This document serves as the company’s yearly financial performance and health summary.

Annual Accounts:

Standard annual accounts must include the following:

• Balance sheet (assets, liabilities, and equity)
• Profit and loss statement (income and expenses)
• Explanatory notes to the accounts
• A director’s report (only for medium and large companies)
• An auditor’s report (if applicable)

Deadlines:

• First set must be submitted within 21 months after incorporation.
• Subsequent accounts must be submitted 9 months after the financial year ends.

Accounts Based on Company Size:

• Accounts for Micro-entities– For very small businesses (turnover ≤ £632,000). Less detailed financial statements and notes.
• Accounts for Small companies– For small businesses (turnover ≤ £10.2 million).
• Accounts for Medium and large companies– Full financial reporting is expected.
• Dormant accounts – These relate to companies that have not traded or engaged in financial activity for the whole year.

Significance of Annual Accounts

• They guarantee financial transparency and adherence to the law.
• They establish credibility for investors, suppliers, and customers.
• They are necessary to obtain business loans or form partnerships.
• They serve the purpose of calculating your Corporations Tax.

Corporation Tax Registration And Filing (CT600)

When your company starts trading, meaning it is conducting business, providing services, or generating income, you have three months to register for Corporations Tax with HMRC. Each year the company must also file a Corporation Tax Return (CT600), even if there are no profits in the company.

Important Notes:

• The Corporation Tax Return must contain your company’s profit and loss accounts, any claimable expenditure, and any tax amendments.
• The Corporation Tax rate for the year 2025 in the UK is 25%. However, companies with profits under 50,000 pounds will qualify for the small profit rate of 19%.
• You must pay your Corporation Tax within 9 months and 1 day after the close of your accounting period.
• And you must file your Corporation Tax Return within 12 months of the close of your accounting period.

Why It Matters:

Filing Corporation Tax correctly is important because it helps your company avoid penalties and is compliant with UK laws. It is also important because you avoid fines and interest for overdue payments.

Tip for Non-Residents:

If you’re a Non-Resident UK Director, letting a professional compliance accountant, or a compliance firm like Bizstartz do the work for you will ensure that your filings will comply with UK standards.

Keeping a UK Business Bank Account

Although a business may not legally be required to have a separate business bank account in the UK, it is still a best practice and legally required in some other countries.

A business bank account promotes the principles of segregation of accounts and the simplicity of tax and bookkeeping records, thereby making the accountant’s job much easier.

Why It’s Important:

• It permits the company to maintain its separate juridical personality.
• It provides a clear audit trail for HMRC.
• It verifies the income and expenses for the tax authorities.
• It increases the firm’s goodwill in business transactions.
• It helps avoid unnecessary business costs.

It is true that for Non-Resident UK Directors, the traditional UK bank account can be opened with in-person verification. On the other hand, accounts opened with modern UK Fintechs such Wise Business, Revolut Business, Payoneer and Monzo Business can be opened remotely and will have UK business banking compliance.

Bookkeeping and Record Keeping

Every Limited Company in the UK is obliged to keep accurate and up-to-date record of the business accounts. This record provides the basis for your annual accounts, tax filings, and your audits.

What to Keep:

• Sales invoices and receipts
• Purchase invoices and bills
• Cash Book and Bank Statements
• VAT returns and submissions
• Records of payroll and employees
• Records of directors expenses
• Loan and investment agreements

How Long to Keep Records:

HMRC expects you to keep all records for at least six years after the end of the accounting period they relate to.

As long as digital records can be produced easily upon request, they are accepted.

Benefits of Proper Bookkeeping:

• Makes the annual tax filings easier.
• Prevent penalties for records that are missing.
• Avoid legal complications by providing accurate insight for decision making.
• Preserve compliance during HMRC audits.

VAT Registration and Ongoing Compliance

Your company must register for Value Added Tax (VAT) if your taxable turnover is more than £90,000 a year (2025 onwards).

If your turnover is less than this, you can register for VAT voluntarily. This can benefit your business as you can reclaim your expenses VAT

Once Registered, You Must:

• Charge VAT on all eligible sales (output VAT)
• Reclaim VAT on business expenses (input VAT)
• Submit VAT Returns to HMRC (usually online monthly).
• Hold on to your detailed VAT records for a minimum of six years.

VAT for Non-UK Residents:

Are you based outside the UK but supplying goods or services to UK customers or using UK fulfilment centers like Amazon FBA? If yes, you may need to register for VAT even if you do not have an office in the UK.

It’s best to accurately identify your VAT obligations to avoid any compliance issues or unexpected tax invoices in the future.

PAYE and Payroll Obligations (If You Have Employees or Directors)

If your business pays salaries for any employees or directors, you need to register with HMRC, and you are required to operate PAYE (Pay As You Earn) system.

What Does PAYE Involve? In short, you need to

• deduct PAYE tax, and National insurance contributions from your employees’ remuneration,
• pay employer’s contributions of National Insurance,
• send Real Time Information (RTI) every time you pay an employee, and
• give payslips, P45, and P60 to employees.

Director Payroll

If your company has only one director, and that director is paid a salary, you are also required to adhere to PAYE regulations. Many directors in the UK pay themselves a small salary and the rest of the remuneration is in dividends. This has to be properly documented.

Registered Office Address and Service Address

Every UK company must keep a valid Registered Office Address in the UK. This must be a physical location (no PO boxes) and will be publicly displayed on the Companies House register. It is where you will send all official documents and correspondence.

Important:

• This address has to be a physical UK address (no PO Box)
• You must be able to receive your official correspondence from HMRC and Companies House there.
• If you don’t have a UK office, you could use a registered agent address, like the one Bizstartz provides.

Director’s Service Address:

Every director is required to have a Service Address. This can also be the registered office. This is a great way to keep a director’s personal address off the public record.

PSC (Persons with Significant Control) Register

The PSC Register (People with Significant Control) aims to stop the misuse of companies, especially concerning money laundering and tax evasion.

A “Person with Significant Control” meets one of these criteria:

• Holds over 25% of shares or voting rights.
• Can appoint or remove a majority of directors.
• Has substantial influence over business decisions.

Compliance Steps:

• Record the PSC details in your internal company register.
• Submit to Companies House.
• Update within 14 days of any change.

Directors are personally liable for any legal repercussions of failing to maintain the register.

2024 Update on Beneficial Ownership Information (BOI) Filing

From March 2024, each company, under the Economic Crime and Corporate Transparency Act, will be required to submit Beneficial Ownership Information (BOI) to Companies House.

This includes:

• Verified identification of directors, shareholders, and PSCs.
• Proof of identity and residential address for directors.

Strengthening corporate transparency and preventing the misuse of UK companies for fraud or illicit activities has Bizstartz assist clients in filing BOI accurately at formation and annually.

Dormant Company Obligations

A company that has not traded during the accounting year is classified as dormant.

Compliance requirements cannot be ignored just because the company is dormant.

Dormant companies must:

• File dormant company accounts with Companies House annually.
• File the Confirmation Statement every year.
• Maintain a registered office address in the UK.

Simple updates like these, when not filed, inactive companies can still be at risk for late fees and potential strike-off.

Penalties for Non-Compliance

Non-compliance of statutory requirements brings large fines from Companies House and HMRC.

Common penalties include:

• Late Filing of Accounts: £150 to £1,500 (depending on delay)
• Failure to File Confirmation Statement: Company may be struck off
• Late Tax Returns: £100 initial fine plus daily penalties
• Director Disqualification: For repeated non-compliance

Avoiding penalties is in your best interest, as is maintaining compliance for the sake of trust with banks, investors, and customers.

How Bizstartz Helps You Stay Fully Compliant

Tackling compliance issues in the UK can be quite complex for many international entrepreneurs, especially if you’re running your business from overseas. You may not even know what compliance really is.

Our experts handle every aspect of company compliance, including:

• Preparation and filing of annual accounts
• Corporation Tax and bookkeeping services
• Confirmation Statement submission
• Registered office and mail forwarding
• BOI filing and PSC register updates
• VAT registration and payroll setup

With all your compliance needs covered, you can focus on the growth of your business, while we ensure your UK Limited Company is compliant with the law at all times.

Final Thoughts

Compliance is not simply a law requirement, it is also the cornerstone of your business credibility. Likewise, complying with the Companies House and HMRC is vital if you have a dormant UK Limited Company.

With Bizstartz, you can be confident all your UK business filings are compliant, accurate, and on time with the law, while you focus on growing your business.

📋 UK Company Compliance Checklist