Setting up a company in the UK: A step-by-step guide (2025)

The UK is one of the world's top business destinations, especially for foreign business owners operating across borders. 

To start a business in the UK, businesses need to understand the steps and legal regulations to ensure the company formation process goes smoothly and successfully. 

The following article by GLA will provide important knowledge and necessary procedures for businesses to easily establish a company in the UK.

1. Why should businesses set up a company in the UK?

1.1. Simple procedures for establishing a company in the UK

In general, compared to other countries in Europe, the procedure for establishing a company in the UK is considered simple, streamlined and the entire process of establishing a company is done 100% online.

1.2. Low cost of setting up a company in the UK

To set up a company in the UK, investors can register a company with a registered capital of £1. The cost of setting up a company in the UK is generally lower than the cost of setting up a company in countries such as Germany, the Netherlands, etc.

Businesses should contact GLA today to get advice on which country to set up a company abroad that suits the direction and needs of the business and learn more about the cost of setting up a foreign company in the UK and other countries such as Singapore, the US, etc.

1.3. Fast time to establish a foreign company in the UK

The time to establish a foreign company in the UK is only 1-2 weeks. The business has complete documents to establish a business in the UK. The entire process of establishing a company in the UK is done online.

1.4. Easy to register charter capital for Enterprises opening multi-currency companies in the UK

Businesses setting up companies in the UK can easily register multi-currency charter capital such as: USD, SGD, Euro, £, etc. 

1.5. Preferential tax policies for foreign investors opening companies in the UK

The UK has a favourable tax policy for foreign investors, providing lower tax rates on income and capital gains earned by foreign investors in the UK.

This policy is designed to attract foreign investment to the UK and promote economic growth.

Additionally, tax rates for foreign investors are generally lower than those for domestic investors and the UK has a number of double tax treaties with other countries to further reduce taxes.

1.6. Stable and growing economy

The UK is one of the countries with the largest economies in the world. With a stable and developed economic system and a diverse consumer market, the UK attracts many international businesses to establish foreign companies in the UK.

That is why this is the market where many individuals/businesses want to invest and register to establish a company in the UK.

1.7. Highly skilled workforce

The UK has a highly skilled and knowledgeable workforce. Therefore, when a business establishes a company in the UK, it can hire highly skilled personnel, bringing many values ​​to the business.

1.8. Development infrastructure

Today, setting up a company in the UK gives your business access to some of the best infrastructure in the world. The road and rail networks are extensive and well maintained, and there is an international air network.

The British government also committed to investing in infrastructure and a number of major projects such as: Heathrow airport, construction of the HS2 high-speed railway line and development of nuclear power plants, etc.

It is the developed infrastructure and government investment in infrastructure projects that have given the UK a great competitive advantage in the global economy and are the choice of many businesses when registering to establish foreign companies in the UK.

Thanks to the developed infrastructure system, establishing a company in the UK is also a top choice for logistics companies.

1..9 Transparent legal system

The UK is a country with a transparent and clear legal system for foreign investors and businesses when establishing a company in the UK.

The UK legal system is ranked among the best in the world because it is based on clear and well-established principles. This makes it easy for foreign companies to understand and comply with UK law.

Legal policies in the UK help protect businesses establishing companies in the UK and ensure the rights of businesses, and the UK government is also committed to creating a supportive environment for businesses.

That is why the UK is an attractive destination for businesses to invest because it offers a stable and business-friendly environment.

1.10. Policy to facilitate development for businesses opening foreign companies in the UK

The British government encourages foreign direct investment.

The UK government does not discriminate between nationals and foreign individuals setting up private companies in the UK. The Department for International Trade actively promotes foreign direct investment and prepares market information for a wide range of industries.

Once incorporated in the UK, foreign-owned companies are treated no differently to UK companies.

The UK Government strongly protects the rights of any company registered in the UK, regardless of the nationality of its ownership, as demonstrated by the fact that the UK has never had to defend an investment dispute at the international arbitration level.

1.11. Easily expand cooperative relationships with partners, foreign businesses and attract new customers

The UK is a country with a good brand in the international market and is home to large corporations and businesses with headquarters, branches and companies in the UK.

Therefore, opening a foreign company in the UK will help businesses enhance their brand and reputation, expand cooperative relationships and attract customers in the international market.

2. Basic requirements for setting up a company in the UK

Before going into the specific process, let's review the basic requirements that a Business needs to meet to set up a company in the UK:

2.1. Registered office address in the UK

Every company incorporated in the UK must have an official office address in the country where it is registered. This will be where legal documents are received and government bodies such as Companies House and HRMC can be contacted. 

PO Box address is not valid.

2.2. Business activities

Companies in the UK need to choose a SIC (Standard Industrial Classification) code. This is a code that describes the company's main business activity such as trading, manufacturing, farming, etc.

Businesses can look up their company's SIC code themselves or seek the support of GLA to determine the most accurate company SIC code. 

2.3. At least one director and one shareholder

A company in the UK must have at least 1 shareholder and 1 director. 

Both roles require individuals to be over 2 years old, legally responsible, and have a clear, transparent record.

In addition, for individuals who are PSC (Person with significant control) shareholders, these shareholders need to provide more clear information about their identity to be able to open a company. PSC are individuals who own more than 25% of the company's shares.

2.4. Flexible charter capital

There is no minimum capital requirement to set up a company, businesses can register capital from £1 upwards. 

However, many companies often register higher capital levels to increase credibility with partners.

2.5. Valid company name

UK company names must be valid, unique, not contain government related terms, Trademark terms or be prohibited by Companies House.

3. The process of establishing a company in the UK is quick and efficient.

The process of establishing a company in the UK is quite simple and easy with the support of an experienced professional unit like GLA. 

With the support of experts, the procedure for setting up a company in the UK includes the following steps:

4. What do you need to do to comply with annual obligations for your Australia company?

After completing the company formation process, a UK company must comply with the following legal obligations:

1. Annual and financial reports: Each year, a company must file an annual report and financial statements with Companies House. This report must be filed before the anniversary of the company's registration.
2. Annual tax declaration: Companies must submit a corporation tax return to HMRC each year. The deadline for submission is 12 months after the end of the company's financial period.
3. Update office address information and company informationy: The company must update its address and company details with Companies House if there are any changes. The information must be updated no later than 14 days after the change. Each year, the company will need to file an annual report to update the company's operations with Companies House.

5. How does GLA support businesses in setting up companies in the UK?

GLA, with its experience in consulting and supporting the establishment of a company in the UK, will successfully support businesses in:

• Consulting on suitable company types, helping businesses optimize business operations.
• Supporting UK companies to comply with laws and annual requirements legally, accurately and efficiently.
• Tax and accounting services and financial reporting according to British accounting standards, ensuring accuracy, legality and completeness.
• Register to open and authenticate physical bank accounts, digital banks easily and successfully.
• Other operational support services such as DUNS registration, Trademark registration, website design, consular legalization.

6. Frequently asked questions about setting up a company in the UK

Highlights

• Popular types of companies include Private Limited Company (Ltd) and Limited Liability Partnership (LLP). Of these, opening a Private Limited Company is a popular choice for foreign business owners.
• Businesses need to ensure that they meet the requirements such as company name, director and shareholder information, PSC, company address and SIC code to register the company as a company.
• The company must register for a tax code with HMRC and fulfill its tax obligations as prescribed.
• Maintaining annual financial statements, updating annual reports and complying with legal regulations are mandatory requirements to ensure the company operates legally.