UKEstablishmentby City Solution

India

Setting up a UK company from India

India is our largest source of new UK companies — SaaS founders who want a GBP-invoicing entity, exporters who need a UK importer of record, and IT services groups opening a London front door for European clients.

What changes for Indian businesses

Five things we handle differently for you

01

Remitting capital: RBI overseas investment rules

If an Indian company or resident is investing in the UK entity, the investment is an Overseas Direct Investment under FEMA. It goes through your authorised dealer bank with Form FC, and the Indian investor files an Annual Performance Report each year. We prepare the UK-side documents your AD bank asks for — certificate of incorporation, share certificates, a valuation where required — in the format they expect.

02

Tax: the UK–India treaty

The UK charges no withholding tax on dividends paid to an Indian parent, so profits can go home cleanly; India then taxes the dividend in the Indian company’s hands. UK corporation tax is 25% (19% on small profits, with thresholds divided across the group). We set the UK year end to 31 March to match your Indian financial year so group consolidation is painless.

03

People: no social security agreement

There is no UK–India reciprocal social security agreement. Staff seconded from India are usually exempt from UK National Insurance for their first 52 weeks; after that they join UK NI. UK hires are on UK payroll from day one. Both are routine — we just need to know who is coming and for how long.

04

Banking from India

Revolut Business onboards Indian-resident directors online where eligible, with a UK sort code and INR-friendly transfers. Indian banks will ask for the UK documents before releasing capital; we supply them. Account opening is subject to eligibility; approval cannot be guaranteed.

05

Hours that work

Our team works 7am–7pm UK time — 11:30 to 23:30 IST — so a Bengaluru or Mumbai afternoon overlaps a full London working day.

The route

What we do, in order

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

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 India

Your FAQs answered

Can an Indian citizen be the sole director and shareholder of a UK company?
Yes. There is no residency or nationality requirement. You need a UK registered office (we provide it) and to complete Companies House identity verification, which can be done from India.
Do I need to set up an LLP or a Ltd?
Almost always a private limited company (Ltd). It is what UK customers, banks and investors expect, and it maps cleanly onto ODI rules. An LLP is tax-transparent and rarely suits an Indian-owned trading business.
Will my UK company pay tax in India as well?
A UK Ltd is UK tax resident by incorporation. If it is controlled and managed from India, India may also treat it as resident under place-of-effective-management rules; the treaty tie-breaker then decides. We plan board process and decision-making with you so the position is clear from the start.
Do I need UK VAT registration to sell software to UK businesses?
Usually not for B2B: the UK customer accounts for VAT under the reverse charge. Selling to UK consumers or holding goods in the UK changes the answer — see our VAT guide.

Fixed quote

Get a fixed quote for your Indian 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
Peter Allen — Director, City SolutionAnswers these personally. More than a decade running UK books for founders who aren’t in the UK.
Fixed fee in writing, within one UK working day. Identity and ownership checks apply to every engagement.

General information about UK company law and tax for businesses based in India; 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.