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
Germany
Setting up a UK company from Germany
Since Brexit the UK is a third country for German exporters, and the friction shows up as VAT, customs and returns. Most German clients want a UK entity so that UK customers buy from a UK company with UK VAT on the invoice and no surprise at the border.
What changes for German businesses
Five things we handle differently for you
01
VAT: why the UK entity exists
Goods sold to UK consumers in consignments of £135 or less are subject to UK supply VAT at the point of sale — the seller (or marketplace) must be UK VAT registered. Above £135, import VAT and duty apply. A UK company with its own VAT and EORI numbers can import, use postponed VAT accounting, and sell domestically with a UK VAT invoice. We register all of it.
02
Tax: treaty and participation exemption
UK corporation tax is 25% (19% on small profits). No UK withholding tax applies to dividends paid to the German parent, and Germany’s participation exemption typically leaves 95% of the dividend tax-free at the GmbH. German CFC rules (Hinzurechnungsbesteuerung) rarely bite on an actively trading UK company taxed at 25% — your Steuerberater confirms; we provide the UK figures.
03
People: social security under the TCA
The UK–EU Trade and Cooperation Agreement keeps social security coordination: staff posted from Germany can remain in the German system for up to 24 months with an A1-equivalent certificate. UK hires are on UK payroll with auto-enrolment pensions.
04
Reporting
Year end set to 31 December, monthly close, and accounts mapped to your HGB or IFRS chart for consolidation. Statutory filing is in English; we can annotate for your German auditors.
05
Banking
Revolut Business onboards German-resident directors online where eligible, with EUR and GBP accounts together. Traditional UK banks are supported where you qualify. Approval cannot be guaranteed.
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
Common questions from Germany
Your FAQs answered
Subsidiary (Ltd) or branch (UK establishment) for a GmbH?
Usually a Ltd: limited liability, only the UK company’s accounts go public, and a day to set up. A branch puts the GmbH’s own accounts on the UK register and needs certified translations. Early losses usable in Germany are the main argument for a branch — see our guide.
Do we need a German-speaking accountant?
Not for the UK filings — they are in English. We work in English and provide reconciliations your German advisers can read.
Can the Geschäftsführer be the UK director?
Yes. No UK residency is required; identity verification with Companies House is done online.
Do we still need an EU–UK EORI pair?
Your GmbH keeps its EU EORI; the UK company gets a GB EORI. Goods move between them under a written intercompany agreement.
Fixed quote
Get a fixed quote for your German 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 Germany; 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.