Register a Business in United Kingdom (UK): Everything You Need to Know

The United Kingdom in 2025 remains a prime destination for global businesses looking to register a business in UK thanks to its strong economy, business-friendly regulations, and access to international markets. London continues to be a leading hub for finance, technology, and innovation, while cities like Manchester, Birmingham, and Edinburgh provide excellent opportunities for startups and international expansions.

For global entrepreneurs and expansion teams, the UK offers a relatively straightforward company registration process with clear compliance requirements. This guide will walk you through market entry options, business structures, the step-by-step registration process, required documentation, post-incorporation essentials, and how an Employer of Record (EOR) can help you hire without creating a UK entity.

Table of Contents

• Exploring Your Market Entry Options in UK
• Business Structures You Can Choose From
• Comparing Business Structure Options
• How to Choose the Right Business Model for Your Operations
• Step-by-Step Guide to Company Registration in UK
• Key Documents Required to Register Your UK Company
• Post-Incorporation Essentials You Shouldn’t Ignore in UK
• Additional Business Licenses and Registrations You Might Need in UK
• Timeframe to Set Up a Business in UK
• What Does It Cost to Incorporate a Company in UK?
• Obstacles Global Founders May Face While Setting Up in UK
• Incorporating as a Foreign-Owned Company: A Special Path
• Employer of Record: A Simpler Way to Hire in UK Without Incorporation
• Why Asanify is the Ideal Partner for Global Companies Entering UK
• Summary & Final Takeaways
• FAQs

Exploring Your Market Entry Options in UK

Before registering your company in the UK, you must choose how you want to enter the market. Businesses generally choose one of two approaches.

Incorporating a Local Business Entity

Setting up a UK entity involves registering with Companies House, obtaining a Company Registration Number (CRN), and registering for taxes with HM Revenue & Customs (HMRC). This route is ideal for companies planning a long-term presence, hiring employees, and raising capital in the UK.

Hiring Through an Employer of Record (EOR)

If you want to test the UK market or start small, hiring through an Employer of Record is a fast and compliant option. The EOR acts as the legal employer for your UK-based staff, handling contracts, payroll, taxes, and benefits, while you manage the team’s day-to-day operations. This option is ideal for short-term projects, small teams, or market validation without the cost and time of incorporation.

Business Structures You Can Choose From

The UK offers multiple legal structures to suit businesses of different sizes, liability preferences, and investment goals:

• Sole Trader – Simple to set up but involves unlimited personal liability.
  
• Partnership – Two or more individuals sharing profits and liabilities.
  
• Limited Liability Partnership (LLP) – Combines partnership flexibility with limited liability for partners.
  
• Private Limited Company (Ltd) – Most popular for SMEs and foreign investors, offering limited liability and credibility.
  
• Public Limited Company (PLC) – Suitable for large enterprises planning to raise capital from the public; requires minimum share capital of £50,000.
  
• Branch Office – Allows a foreign company to operate in the UK as an extension of the parent entity but does not create a separate legal company.
  

Comparing Business Structure Options

Structure	Ownership	Liability	Taxation	Compliance	Best For
Sole Trader	1 owner	Unlimited	Personal income tax	Low	Freelancers and micro-businesses
Partnership	2+ partners	Unlimited	Personal income tax	Low	Small co-owned businesses
LLP	2+ partners	Limited	Corporate tax	Moderate	Service firms and joint ventures
Ltd	1+ shareholders	Limited	Corporate tax	Moderate	SMEs and foreign subsidiaries
PLC	2+ shareholders	Limited	Corporate tax	High	Large corporations and fundraising
Branch Office	Parent company	Parent liable	Corporate tax on UK revenue	Moderate	Market testing by foreign companies

How to Choose the Right Business Model for Your Operations

Choosing the right structure depends on your operational goals, liability tolerance, and growth strategy.

Freelancers or small service providers often prefer Sole Trader or Partnership structures. LLPs are attractive for professional service firms and joint ventures. Private Limited Companies (Ltd) are the most common choice for foreign investors due to their limited liability and ease of scaling. Large enterprises intending to raise capital through public markets should consider a PLC.

If you plan to test the UK market first, a Branch Office or EOR solution allows for quick entry without full incorporation. Companies with long-term expansion plans and the need for local credibility should register as a Ltd or PLC.

Step-by-Step Guide to Company Registration in UK

1. Choose your company structure (Ltd, LLP, PLC, etc.) based on your needs.
   
2. Select a unique company name and check availability through Companies House.
   
3. Prepare your Memorandum and Articles of Association.
   
4. Provide details of directors, shareholders, and persons with significant control (PSC).
   
5. Register the company with Companies House to receive your Company Registration Number (CRN).
   
6. Open a corporate bank account in the UK for financial transactions.
   
7. Register for corporation tax with HMRC within three months of starting business.
   
8. Register for VAT if annual turnover exceeds the VAT threshold or if you plan to trade in the EU.
   

Suggested Read: Labour Laws in the UK: A Complete 2025 Guide

Key Documents Required to Register Your UK Company

• Passports or national IDs of all directors and shareholders
  
• Proof of residential address for directors and shareholders
  
• Memorandum and Articles of Association
  
• Proof of registered office address in the UK
  
• Details of Persons with Significant Control (PSC)
  
• Bank account details for share capital deposit (if applicable)
  

Post-Incorporation Essentials You Shouldn’t Ignore in UK

After registering your UK company, several compliance steps are mandatory:

• Register for corporation tax with HMRC and file annual accounts
  
• Submit annual confirmation statements to Companies House
  
• Maintain statutory registers for directors, shareholders, and PSCs
  
• Set up payroll and deduct PAYE (Pay As You Earn) for employee salaries
  
• Ensure compliance with pension auto-enrollment and other employee benefits
  
• Keep accurate accounting records and comply with UK tax filing deadlines
  

Additional Business Licenses and Registrations You Might Need in UK

Depending on your business type and industry, you may need additional registrations or permits:

• Local trading or premises licenses for physical operations
  
• EORI number for import and export within the EU
  
• Sector-specific licenses for finance, healthcare, education, or food services
  
• Environmental or safety permits for industrial or manufacturing businesses
  

Timeframe to Set Up a Business in UK

The UK has one of the fastest company registration processes in Europe. Here is a realistic timeline:

Step	Estimated Duration
Prepare incorporation documents	1–2 business days
Register with Companies House	1–3 business days
Open corporate bank account	3–5 business days
Corporation tax and VAT registration	3–7 business days
Total Time to Register	7–14 business days

Delays can occur if bank verification takes longer or if additional industry-specific approvals are required.

What Does It Cost to Incorporate a Company in UK?

The cost of incorporation is relatively low compared to other European countries. Typical expenses include:

• Companies House registration fee: £12–£100 depending on filing method
  
• Professional service fees: £300–£1,000 for legal or accounting assistance
  
• Bank account setup and potential share capital deposit (optional for Ltd)
  
• Optional licenses or permits: £100–£500 depending on industry
  

On average, incorporating a private limited company in the UK costs between £500 and £1,500.

Obstacles Global Founders May Face While Setting Up in UK

Foreign entrepreneurs may encounter challenges such as:

• Opening a UK business bank account often requires in-person verification
  
• Understanding UK tax and employment compliance, including PAYE and VAT
  
• Preparing proper PSC (Person with Significant Control) filings
  
• Securing local business addresses for official correspondence
  
• Navigating sector-specific licenses for regulated industries
  

Incorporating as a Foreign-Owned Company: A Special Path

Foreign companies have several options for entering the UK market:

• Wholly-Owned Subsidiary (Ltd or PLC) – Provides full control and limited liability
  
• Branch Office – Allows trading under the foreign parent company’s name without creating a separate legal entity
  
• Representative Office – Used for market research or liaison activities, but cannot trade or generate revenue
  

The UK generally allows 100% foreign ownership. However, certain regulated sectors like financial services, defense, and energy may require additional approvals or licenses.

Employer of Record: A Simpler Way to Hire in UK Without Incorporation

Entering the UK market does not always require forming a local entity. An Employer of Record (EOR) offers a quick and compliant solution to hire employees in the UK without the complexities of incorporation. It allows global companies to focus on operations while the EOR manages employment contracts, payroll, and local compliance.

• EOR allows foreign businesses to hire UK employees without establishing a Ltd or PLC.
• The EOR acts as the legal employer, handling contracts, processing payroll, taxes, and National Insurance contributions.
• Your company retains full control over day-to-day work, roles, and performance management.
• Ideal for market testing, pilot projects, or building small, distributed teams quickly.
• EOR ensures compliance with UK employment laws, reducing risks of misclassification or penalties.
• Manages statutory benefits like pensions, paid leave, and social security obligations.
• Saves time and costs while allowing fast, flexible, and compliant market entry into the UK.

Suggested Read: Employer of Record UK: Ultimate Guide

Why Asanify is the Ideal Partner for Global Companies Entering UK

Expanding into the UK requires navigating legal, tax, and HR compliance, which can be complex for foreign companies. Asanify makes this process simple by offering both company incorporation and Employer of Record (EOR) services, helping global businesses enter the UK market quickly and without risk.

• Asanify offers end-to-end support for both incorporation and EOR-based hiring in the UK.
• We handle company registration, tax setup, payroll, and local compliance, allowing you to focus on growth.
• Our EOR solution lets you hire UK employees within days without creating a legal entity.
• We ensure compliance with UK labor laws, PAYE, National Insurance, and employee benefits.
• Trusted by startups, SMEs, and global enterprises, Asanify provides local expertise, transparent pricing, and a smooth market entry experience.

Summary & Final Takeaways

The United Kingdom remains one of the most attractive markets for global companies in 2025. Businesses have two primary options for market entry: incorporate a UK entity (such as a Ltd or PLC) for long-term operations or hire through an Employer of Record for rapid and flexible hiring without legal complexity.

If your strategy involves establishing a permanent presence, raising capital, or hiring larger teams, incorporation is the best path. If you need to enter the market quickly, validate operations, or hire a small team, an EOR provides speed and full compliance.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.