1. Form and register
UK Ltd incorporated in 24–48 hours, London registered office, Corporation Tax registration, year end aligned to your group. Company formation
Australia
Setting up a UK company from Australia
The UK–Australia free trade agreement removed tariffs on almost all goods and made the UK the natural first international market for Australian brands and software companies. A UK subsidiary is what British customers, marketplaces and payment providers expect.
32UK investment projects from Australia in 2025–26, creating 900 jobs — DBT inward investment results.
24–48 hrsTo incorporate once directors have verified identity. No UK-resident director is required.
0%UK withholding tax on dividends paid to a Australian parent. The UK–Australia treaty and Australia’s non-portfolio dividend exemption (section 768-A) generally leave the dividend untaxed at the Pty Ltd.
What changes for Australian businesses
Five things we handle differently for you
01
Goods: tariff-free under the FTA, but VAT and customs still apply
Since May 2023 almost all Australian-origin goods enter the UK tariff-free under the UK–Australia FTA, subject to origin rules. Import VAT at 20% and customs declarations still apply. A UK company with a GB EORI imports in bulk, uses postponed VAT accounting and sells domestically; consumer consignments of £135 or less carry UK VAT at the point of sale.
02
VAT versus GST
UK VAT is 20% against GST at 10%. A UK Ltd run from Australia is usually non-established and registers before its first UK sale, not at £90,000. Quarterly returns under Making Tax Digital, reconciled to Shopify, Amazon and Stripe reports.
03
Tax: 25% and the dividend exemption
UK corporation tax is 25% (19% small profits, diluted by group size) — Australia’s base rate for small companies is also 25%. No UK withholding on dividends; Australia’s non-portfolio foreign dividend exemption generally makes them non-assessable at the Pty Ltd. Australian CFC rules rarely bite on an actively trading UK company. Your Australian accountant confirms; we supply the UK figures.
04
People: the social security agreement and visas
The UK–Australia social security agreement ended in 2001; there is no coverage certificate, so seconded staff pay UK National Insurance from day one and superannuation obligations depend on the employment structure. UK hires go on UK payroll with auto-enrolment. Australians under 35 can work in the UK for up to three years on the Youth Mobility Scheme without sponsorship — useful for early hires. Sponsorship otherwise needs a licence, handled with an immigration adviser.
05
Time zones and reporting
Sydney is nine to eleven hours ahead of London. Our 7am–7pm UK day gives you an overlap from mid-afternoon AEST; approvals are scheduled for your afternoon. Year end set to 30 June or 31 December to match the parent; trial balance mapped to your chart.
The route
What we do, in order
2. Bank and VAT
Revolut Business account set-up, VAT and EORI where needed, intercompany agreement in writing. Bank account · VAT
3. Run and report
Monthly Xero bookkeeping, payroll, quarterly VAT, annual accounts and CT600, every deadline tracked. Packages from £750 a month
The full sequence, with timings: how it works.
Common questions from Australia
Your FAQs answered
Do we need a UK resident director?
No. UK company law has no residence requirement. Identity verification with Companies House is online.
Pty Ltd branch or UK Ltd?
Usually a Ltd: limited liability, formation in a day, only the UK company’s accounts go public. A branch puts the Pty Ltd’s own accounts on the UK register.
Can Australian staff work in the UK without a visa?
Not for employment. Under-35s can use the Youth Mobility Scheme for up to three years without sponsorship; otherwise a Skilled Worker visa with a sponsor licence is needed.
Which bank?
Revolut Business is our default route and opens in days for an Australian-owned UK company. Subject to eligibility. Australian banks’ London branches serve corporates, not new subsidiaries.
Fixed quote
Get a fixed quote for your Australian group’s UK company
Tell us where the parent company is and what the UK operation has to do. You’ll get a written fixed fee — set-up and the first year’s running costs — within one UK working day.
No obligationAnswered by an accountantFee agreed before work starts
Peter Allen — Director, City SolutionAnswers these personally. More than a decade running UK books for founders who aren’t in the UK.
General information about UK company law and tax for businesses based in Australia; not advice for your circumstances. Home-country tax and regulatory points are outlined so you can brief your local advisers — they, not we, confirm them. Bank account opening is subject to eligibility; approval cannot be guaranteed. FDI figures: Department for Business and Trade, inward investment results 2025 to 2026.