Questions and answers
34 questions overseas founders ask about setting up in the UK — answered in plain English
Short, direct answers you can act on, each with a link to the fuller guide. Updated when Companies House or HMRC change the rules.
Getting started
Can a foreigner set up a company in the UK?
Yes. Anyone, of any nationality, living anywhere, can form and own a UK limited company. You need a UK registered office address, a registered email address, and each director and controller must verify their identity with Companies House — all of which can be done from abroad. Read more →
Do I need a UK resident director?
No. UK company law has no residency requirement for directors or shareholders. Some traditional banks prefer a UK-resident signatory, and UK-based decision-making helps show the company is managed here, but it is a consideration, not a rule. Read more →
How long does it take to set up a UK company from abroad?
Incorporation takes 24–48 hours once directors have verified their identity. A Revolut Business account typically opens within days; traditional banks take two to six weeks. Most clients are trading within three to four weeks. Read more →
What is a “UK establishment”?
It is Companies House’s term for a branch: an overseas company’s registered place of business in the UK, filed on form OS IN01. It is an alternative to forming a subsidiary. Most groups choose a subsidiary; a branch mainly suits groups that can use early UK losses at home. Read more →
Should I set up a subsidiary or a branch?
Usually a subsidiary: limited liability, only its own accounts on the public register, incorporated in a day, easier banking. A branch exposes the parent and usually puts the parent’s accounts on the UK register. Our eight-question checker gives you a recommendation in two minutes. Read more →
Should I use an employer of record instead?
For one non-sales hire and no UK customers, an EOR is faster. Once you contract with UK customers or reach two or three hires, your own subsidiary is cleaner and usually cheaper within a year — and an EOR does not stop a UK tax presence arising if the employee sells for you. Read more →
Do we already have a UK tax presence?
You might. A UK-based employee who negotiates and closes deals, or a fixed place of business here, can give the overseas parent a UK permanent establishment — and a UK corporation tax bill — before anything is registered. Worth checking before you incorporate. Read more →
Company formation
What do I need to form a UK limited company?
A company name, a UK registered office address, at least one director and one shareholder (can be the same person or a company), a statement of capital, articles of association, details of people with significant control, and identity verification for each director and PSC. The Companies House fee is £100 online. Read more →
What is a registered office and do I need one?
Every UK company must have a registered office in the UK jurisdiction it is registered in — it is where Companies House, HMRC and legal documents are served. It does not have to be where you work. We provide a London address with statutory mail forwarding from £350 a year. Read more →
What is a person with significant control (PSC)?
Anyone who owns more than 25% of the shares or voting rights, can appoint or remove a majority of the board, or otherwise exercises significant control. PSCs are recorded on the public register and must verify their identity with Companies House. Read more →
Tax
What is the UK corporation tax rate?
25% on profits above £250,000; 19% on profits up to £50,000; a sliding marginal rate in between. Both thresholds are divided by the number of associated companies worldwide plus one, so a subsidiary of an established group usually pays 25% on everything. Read more →
Is there withholding tax on dividends from a UK company to its parent?
No. The UK charges no withholding tax on dividends to any shareholder, in any country. Interest and royalties paid abroad carry 20% withholding unless a treaty rate is claimed in advance. Read more →
Will my UK company be taxed twice?
Normally not. The UK has tax treaties with over 130 countries, the UK does not withhold on dividends, and most home countries exempt or credit foreign subsidiary dividends. The risk area is dual residence — if the UK company is managed entirely from abroad — which the treaty tie-breaker resolves. Read more →
When are UK corporation tax and accounts due?
Corporation tax is paid nine months and one day after the year end. The CT600 return is due 12 months after the year end. Annual accounts go to Companies House nine months after the year end (21 months after incorporation for the first set). Read more →
Do transfer pricing rules apply to my small UK subsidiary?
The UK exempts small and medium-sized groups (broadly under 250 staff and under €50m turnover or €43m balance sheet, measured group-wide) from formal transfer pricing rules, but HMRC still expects intercompany charges to be at arm’s length and documented. Write the agreement before the first invoice. Read more →
VAT
Do I need to register for UK VAT?
If your business is established in the UK, only once taxable turnover exceeds £90,000 in 12 months. If it is not established in the UK — a UK Ltd run entirely from abroad usually counts as not established — you must register from your first taxable UK sale. We assess this before you sell anything. Read more →
What is the UK VAT rate?
20% standard; 5% reduced (some energy, children’s car seats); 0% zero-rated (most food, books, children’s clothing, exports). Some supplies are exempt (finance, insurance, education). Read more →
Do I need an EORI number?
Yes if goods will cross the UK border in your company’s name. A GB EORI is issued by HMRC, usually within a few days, and lets you import, use postponed VAT accounting and appoint a customs agent. Read more →
Do I charge UK VAT to UK business customers for services from abroad?
Usually not. For most B2B services the UK customer accounts for VAT under the reverse charge. Selling to UK consumers, or holding goods in the UK, changes the answer. Read more →
Banking
Can I open a UK business bank account without living in the UK?
Yes. We set most clients up with Revolut Business — a fully licensed UK bank since March 2026, with FSCS protection up to £120,000 — which onboards non-resident directors online where eligible. Traditional banks are supported where you qualify. Approval is never guaranteed by any bank. Read more →
Why do banks ask so many questions?
UK anti-money-laundering rules put the burden on the bank to understand who owns the company, what it does and where its money comes from. A clear ownership chart, a plain description of the business and prompt replies are what get applications approved. Read more →
Can the UK company invoice in dollars or euros?
Yes. Invoices can be in any currency. Books and tax returns are kept in pounds, and Revolut Business gives you GBP, EUR and USD accounts side by side. Read more →
People
What does it cost to employ someone in the UK?
Salary plus employer National Insurance at 15% above £5,000 a year, plus a minimum 3% employer pension on qualifying earnings — typically 12–20% on top of salary before benefits and insurance. Use our calculator for the exact figure. Read more →
What do I need before paying my first UK employee?
A PAYE scheme (allow up to 15 working days for HMRC to issue references), a workplace pension scheme, employer’s liability insurance (£5m minimum), and a written statement of employment particulars on or before day one. Read more →
Can I second staff from head office to the UK?
Yes. Whether they stay on home-country social security depends on the agreement: the US–UK agreement allows up to five years, the EU–UK arrangement up to 24 months, and there is no agreement with India or the UAE (a 52-week UK NI exemption usually applies instead). Immigration permission is a separate question we refer to specialists. Read more →
Running the company
What are a UK company’s annual filing obligations?
A confirmation statement at least every 12 months (£50), annual accounts nine months after year end, a CT600 corporation tax return 12 months after year end, VAT returns quarterly if registered, and PAYE submissions every payday. Around thirty dates a year for a trading company — we track all of them. Read more →
What happens if I miss a Companies House deadline?
Late accounts attract automatic penalties from £150 rising to £1,500 (doubled if late two years running). A confirmation statement left long enough can lead to the company being struck off — and its bank account frozen. Penalties are charged without a reminder. Read more →
Will my UK subsidiary need an audit?
Only if the worldwide group is not small: two of £15m turnover, £7.5m balance sheet and 50 employees, measured across the whole group. A tiny UK subsidiary of a large group still needs one. We check at set-up because the auditor must be appointed before the year end. Read more →
How do I close a UK company I no longer need?
A solvent company with no debts can be struck off voluntarily for a small fee after settling its final tax, usually within three months. A company with liabilities needs a formal liquidation. Dormant companies can be kept alive cheaply with dormant accounts and a confirmation statement. Read more →
Costs and working with us
How much does it cost to set up and run a UK company?
With us: Launch from £1,950 one-off (plus Companies House fees at cost) to get incorporated, addressed and banked; then Establish from £750 a month or Embedded from £1,500 a month to run it. Individual services are available separately; packages save 15–25%. Read more →
What checks do you run before taking us on?
Identity verification of every director and 25%+ owner, an ownership chart to the real people behind it, sanctions and PEP screening, and a plain account of what the business does and where the money comes from. Legitimate businesses clear it in about a day. We decline opaque structures and do not provide nominee directors. Read more →
Who is City Solution?
Our parent firm: a London bookkeeping, payroll, VAT and advisory practice incorporated in 2014 (company no. 09145699). UK Establishment is the same team, focused on companies arriving from overseas. Read more →
General information for overseas businesses considering the UK, correct to the best of our knowledge at the date shown. Not advice for your specific circumstances — rates and thresholds change, usually each April. Check with us or HMRC before acting on it.