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
Canada
Setting up a UK company from Canada
For Canadian companies the UK is the familiar European market: common law, English, a Commonwealth business culture, and customers who expect a UK entity. The set-up takes a day. The differences are VAT, employment law and how the Canadian side reports the subsidiary.
32UK investment projects from Canada in 2025–26, creating 1,263 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 Canadian parent. The UK–Canada treaty and Canada’s exempt-surplus rules generally leave the dividend untaxed at the Canadian parent.
What changes for Canadian businesses
Five things we handle differently for you
01
Goods: the Trade Continuity Agreement
Canadian-origin goods enter the UK tariff-free under the UK–Canada Trade Continuity Agreement, subject to origin rules. Import VAT at 20% and customs declarations still apply. A UK company with a GB EORI imports, uses postponed VAT accounting and sells domestically with a UK VAT invoice.
02
VAT versus GST/HST
UK VAT is 20%, a single national rate. A UK Ltd run from Canada is usually non-established and registers before its first UK sale, not at £90,000. Quarterly returns under Making Tax Digital.
03
Tax: 25%, exempt surplus and T1134
UK corporation tax is 25% (19% small profits, diluted by group size). No UK withholding on dividends; because the UK is a treaty country, dividends paid out of active business income are exempt surplus and generally tax-free in Canada. The Canadian parent must file a T1134 information return for the UK foreign affiliate each year — we provide the UK figures in the format your Canadian accountant needs.
04
People: the social security agreement
The UK–Canada social security agreement allows staff seconded from Canada to remain in CPP for up to 60 months with a certificate of coverage, so UK National Insurance is not due for them. UK hires go on UK payroll with auto-enrolment. UK employment law has no at-will employment either; notice, fair reason and fair process apply, and there is no provincial variation.
05
Time zones and reporting
Toronto is five hours behind London; Vancouver eight. Our 7am–7pm UK day overlaps your morning fully. Year end set to match the parent; trial balance mapped to ASPE or IFRS.
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 Canada
Your FAQs answered
Do we need a UK resident director?
No. UK company law has no residence requirement, and there is no equivalent of the Canadian resident-director rules some provinces still apply.
Should the Canadian corporation or the founders own the UK company?
The corporation, in almost every case: dividends come home as exempt surplus, and T1134 reporting is straightforward. Individual ownership creates UK close-company issues and personal-tax filing in both countries.
Can seconded staff stay in CPP?
Yes, for up to 60 months with a certificate of coverage from the CRA under the UK–Canada agreement. UK National Insurance is then not due for them.
Which bank?
Revolut Business is our default route and opens in days for a Canadian-owned UK company. Subject to eligibility. A UK high-street account can run in parallel if needed.
Fixed quote
Get a fixed quote for your Canadian 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 Canada; 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.