Company Registration in the UK
Company registration in the UK requires business management experience, an IELTS General score of at least 5.5, and a strong, well-presented business plan. Simply registering a company does not lead to permanent residency—you must run a profitable business and sponsor foreign workers.
After 3 years of active operation, if the company is successful, you may apply for permanent residency in the UK. There’s no age limit, and routes like the Start-up or Innovator Visa offer added benefits. For free consultation and eligibility assessment, contact Malekpour Institute. In the comments section, you can also ask your questions and receive answers shortly.
Conditions for Company Registration in the UK
To receive residency through Company Registration in the UK, you must be employed in the registered company after registering it. Providing a business plan that shows your project has suitable economic profitability for the UK government is among other conditions.
The conditions for registering a company in the UK are as follows:
- Age over 18 years
- Employment and work in your own company
- Financial ability of about £50,000
- Experience in management and business
- Initial capital of £10,000 to £30,000
- Creating employment for English workers
Introduction to Types of Companies in the UK
For immigrating to the UK, just like other countries, it is possible to register various types of companies, which will be discussed in this part of the article. Companies in the UK are classified into the following types:
Registration of Private Limited Company
Private limited companies in the UK are private companies aimed at carrying out commercial activities and transactions and do not have any restrictions regarding buying and selling goods. To register this company, only two people are needed, including one shareholder and one manager.
Registration of Limited Liability Company (LLC)
This type of company is similar to private limited companies and has limited responsibilities. In fact, the only difference between public and limited liability companies in the UK is the timeframe for receiving the registration number and company name.
Registration of Limited Liability Company by Guarantee
These companies are actually non-profit organizations, and registering this type of company only requires spending a few hours. Organizations accepting membership are placed on the list of this type of company.
Registration of Public Limited Company in the UK
The holders of these companies have no restrictions for conducting transactions and business activities around the world. A public limited company is registered with at least two managers and one shareholder and requires having substantial capital.
Methods of Registering a Company in the UK
Company registration in the UK can occur through various methods, which we will introduce here along with the conditions for each.
UK Startup Visa
The UK startup visa, or Innovation in the UK, is one way of investing and starting a new and modern business. To apply through the UK startup, you must be endorsed by one of the business or higher education organizations to receive an endorsement letter. Also, having a new and creative business plan and financial capability are among the conditions of this method. You can stay in the UK for 2 years with this visa, and after this period, if your business meets the necessary conditions, you can change your visa to an innovator visa.
UK Innovator Visa
The UK innovator visa is designed for experienced entrepreneurs looking to create an innovative business in the UK. The business idea must be reviewed by a validating organization that certifies that the innovative plan is viable and scalable. Applicants need at least £50,000 in initial capital. Applicants must also have sufficient financial means to support themselves in the UK, meaning they should have at least £2,000 in personal savings for one month before applying.
UK Self-Sponsorship Visa
The UK Self-Sponsorship Visa is a work and investment-based migration option with no age limit. Applicants can either buy shares in an active UK company (minimum £55,000) and receive a job offer or establish their own company with a strong business plan and invest at least £200,000.
Key requirements include IELTS General 5.5, a solid resume, and employing UK staff. After 5 years of work, tax payment, and clean records, applicants can apply for permanent residency and later a UK passport. This path also allows a spouse to work full-time and children to study for free.
Conditions for Establishing a Branch of a Company in the UK
By establishing a branch of a company in the UK, your company does not create a separate legal entity. Instead, it registers your company to conduct business in the UK. Establishing a branch does not benefit from the limited liability of a British limited company. Registering a foreign company’s branch in the UK takes longer than registering a limited company, as your company must send documents and information to Companies House.
It may take 4 weeks for these items to be reviewed. In other words, if you want to establish a business location in the UK, you must register an overseas company with Companies House.
Documents Required for Company Registration in the UK
To register a company in the UK, applicants need to provide the necessary documents for this process. Some of these documents include:
- Passport
- Initial capital amount
- Articles of association
- Memorandum of understanding
- Company certificate
- Company economic code
- Opening a bank account
Steps to Register a Company in the UK
Setting up a limited company in the UK has steps that must be followed step by step to achieve the desired result. In this section, you can see the steps for registering a company in the UK in a list:
1. Open an Account
To open a bank account as a non-resident, you need a passport and a driver’s license, but your chosen bank may also request other documents, especially documents showing your current address. Usually, three months of utility bills will also be required. Typically, you need to fill out an application form to open a bank account. Often, you can do this at a branch or online, and sometimes you can do it by phone as well.
2. Choose the Type and Name of the Company
At this stage, you need to decide which type of company fits your work structure best. After selecting the type of company, you must choose a name based on the rules. The chosen name must be unique and contain words like “Limited” or “Ltd.” Do not use sensitive, offensive, or “illegal” words. Also, do not use trademarks and names similar to well-known brands, as this may create problems for you in the future.
3. Standard Industrial Classification (SIC)
Plan the amount of capital and then select the directors and employees. Choose shareholders or guarantors and identify persons with significant control (PSC) over the company. After preparing all these documents, you can register your activities and company information as a newly established company in the Standard Industrial Classification section.
4. Register the Company
To prevent others from misusing the company name and to establish tax matters correctly, register your company in the UK.
5. Submit Documents and Information
At this stage, you need to submit your company’s location and address along with any other documents that may be required.
6. Apply for a Visa
Once the company is set up, if you are employed within your company yourself, you can apply for a visa.
Cost of Registering a Company in the UK
To register a company in the UK, just £2,000 to £3,000 may even be sufficient. However, the applicant must have enough financial capability to pay the costs of the company and employee salaries. It is better for the applicant’s financial capability to be around £40,000 to £50,000. The minimum capital required to obtain residency in the UK through company registration is about £10,000 to £30,000.
Obtaining Residency Through Company Registration in the UK
If you wish to register a company in the UK, you should know that merely registering a company does not grant you residency in the UK. You can only apply for residency through company registration in the UK if you work in your own company. Also, you must create jobs for several English citizens and be an entrepreneur. In this case, if your project is sufficiently profitable after three years, you can apply for residency.
How to Verify a Company in the UK
We will show you how to check if a company is legal and compliant with UK regulations:
- Check the authenticity and credibility of the company in question.
- Review the company’s history and individuals who have collaborated with the company.
- Check the company name in the FCA Financial Conduct Authority registration system.
- Check the domain name, website URL, as well as the type of website activity and the security of the gateways.
What is the Company Registration Tax in the UK?
In the UK, resident companies are subject to tax on their global profits, whereas non-resident companies are liable for UK company tax on profits attributable to a UK PE and trading profit. The normal corporation tax rate for the last financial year has been 19%, and the same rate is maintained in the current financial year.
It is noteworthy that in cases where taxable profits can be attributed to the exploitation of inventions, a lower effective tax rate applies, with the rate considered at 10%. The profit can include a significant portion of the trading income resulting from the sale of a product, which includes a patent and not just income from royalties.
Naming Rules for Company Registration in the UK
- Prohibition of using similar names: Your chosen name should not be similar to the names of other registered companies. You can use the official website of the Registrar of Companies to check this.
- Use of special terms: Some special terms such as “national”, “nationality” or “royal” can only be used with special permissions.
- No use of offensive names: The chosen name should not contain offensive or illegal words.
- Letter rules: The name must contain at least one English letter and cannot contain non-standard symbols or single numbers.
- Name length: The company name must be between 1 and 255 characters.
- Prefixes and suffixes: Some prefixes and suffixes may require special permission (such as “limited company” or “public company”).
- Compliance with trade laws: The chosen name must comply with UK trade laws and must not indicate illegal activities.
Investment Standards in the UK
Given the sensitivities surrounding company registration and investment in the UK and the risk of losing capital, applicants must become familiar with the standards affecting investment in the UK prior to proceeding. One of these standards is the rate of property confiscation in the UK, which indicates how the UK government reacts to foreign investors in case of problems.
Another effective standard in this regard is the level of administrative corruption control. Administrative corruption exists in most countries, but its prevalence can significantly impact investment and company registration in a country.
Advantages of Registering a Company in the UK
Registering a company or investing in any country, including the registration of a company in the UK, has advantages that will be discussed in this section of the article. The benefits of registering a company in the UK include:
- Possibility to bring spouse and children under 18
- Low cost required to register a company in the UK
- Unlike many immigration methods, working conditions will be guaranteed for the applicant from the beginning
- Investment in the person and the main capital with high profitability
Best Industries in the UK for Company Registration
Considering technological and economic advancements in recent years, some industries have proven to be more profitable than others. Below, we have named several high-growth industries with good returns for you.
- Technology Industry
- Information Technology
- Medical Industries
- Marketing Industries
Lawyer for Company Registration in the UK
Britain has always been a center for trade and commerce worldwide. If you are looking to set up a business and register a company in the UK and obtain a UK visa, it is crucial to choose the right structure for your business, consider key issues before launching and registering a company in the UK, plan for the cost of registering a company, and understand the process of setting up a company in the UK.
For successful company registration in the UK, it’s essential to consult a UK company registration lawyer. They understand all legal requirements, guide you through the best business structure, and help ensure compliance. Malekpour Immigration Institute, with years of experience and partnerships with top UK lawyers, can support you in choosing the right setup based on your goals and ensure a smooth registration process.
Disadvantages of Immigration Through Company Registration in the UK
- Legal Complexities
- High Competition
- Management and Supervision
Frequently Asked Questions About company registration in the UK
- Does company registration in the UK lead to permanent residency after a few years?
By registering a company in the UK and starting a business, you can apply for permanent residency in the UK after 3 years if the business is active.
- Is there a residency condition for company registration in the UK?
Yes, the applicant must be physically present in the UK for at least 6 months of the year and manage their business.
- Does the company work method in the UK require language certification?
Yes, for the company work method in the UK, the applicant must have at least an IELTS score of 5.5.
- What is the minimum capital necessary to obtain residency in the UK through company registration?
The minimum capital required to receive residency in the UK through registering a company in this country is £50,000.
