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Legal Grounds for Starting a Business in the UKSaved

Many entrepreneurs worldwide would like to work in a reputable jurisdiction. This single feature adds credibility to any business in good standing. The United Kingdom steadily remains among the top destinations for businesses with the highlighted goal in mind.

In 2025, Great Britain remains a leader in the rating of the best countries for doing business. If you want to start doing business here too, the major task is to complete company registration in the UK successfully. We will share with you the must-have points to know.

Is It Actually Good to Establish a Business Presence in the UK?

Aside from its long-lasting history, the UK’s reputation as an advantageous jurisdiction is backed by many practical reasons:

  • strong economy and local markets
  • developed and predictable legislation based on the English common law
  • business-friendly environment
  • easy and straightforward registration
  • low incorporation costs
  • numerous benefits for businesses, for instance, related to R&D
  • extensive network of double-tax treaties
  • strong judicial system that effectively protects the rights of investors
  • reputable and reliable banking system
  • overall openness to innovations and new business ideas
  • high ethical standards of doing business

What UK Company Suits Business Purposes Best?

Founding a limited liability company (LLC) is the best choice for many entrepreneurs. This entity envisages the limited liability of its founders/shareholders – no more than the value of the contributions made in this company. However, they are not allowed to offer their shares to the general public freely. The latter option remains the prerogative of a public limited company only.

Any LLC has a separate legal personality. This means that its founders/shareholders don’t bear any liability over the debts and losses of their company. Once again, their liability never exceeds the value of the shares in possession.

By the way, the UK legislation doesn’t impose any minimal requirements concerning the amount of statutory capital. Formally, it may be even £1. However, it is also important to consider the types of activities. Forming the share capital in the appropriate amount is highly advisable. Professional legal consultants can help you balance the requirements of UK laws and standards.

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There are also minimal record-keeping requirements imposed on this type of entity. Its activity is also subject to corporate tax at a rate of 25% of the company’s income. This is much lower compared to the rate applicable to sole traders which may exceed up to 45%.

Who Registers the Companies in the UK?

The Company’s House is a state authority in charge of registering new entities and updating their data. It typically completes the registration within 24 hours after filing the registration documents. However, it may take a bit longer because of the large number of applications pending. This is another indirect confirmation of the great popularity of the UK as a global business hub.

The great advantage is the online registration of a company. You may submit all of the forms and details without personal visits to the registrar. The fee is also very affordable. In 2025, it is £50.

How the Registration Process Goes?

Establishing a new UK LLC is usually a straightforward process that covers several stages:

  1. Define the types of business you plan to carry out in the UK. It is greatly advisable to have a clear business plan. A business plan is not obligatory for filing but merely brings clarity to the registration process and makes legal assistance to the point.
  2. Select your business name. It should be unique and not infringe on the rights of others.
  3. Appoint a company’s director. He/she has to be a UK resident. Optionally, you may also appoint a company secretary who will be in charge of maintaining the company’s records.
  4. List shareholders and request their personal and contact details for registration.
  5. Prepare documents for filing and pay the registration fee.
  6. File the documents and obtain the registration certificate.

The actual registration process may slightly vary, given the background of a business case. Contact professional advisors to elaborate on a to-do list relevant to your situation.

Companies That Benefit in the UK (by Industries)

Establishing a business presence in Great Britain is especially favorable for businesses across these industries:

  • Finances – the UK has one of the most developed markets in the world. It is particularly suitable for companies operating in fintech, banking, investments, and insurance.
  • Consulting – the country offers an enormous number of opportunities for consulting. The presence of various multinational companies steadily encourages the growth of the sector. Therefore, consultancy businesses in IT, advertising, legal, finance, and management will find the UK especially attractive.
  • Technologies – Great Britain has a robust technological infrastructure, creating a favorable environment for software development and distribution. The UK is also a perfect place for different web and cyber security developments.
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  • E-commerce – the UK offers extensive markets, even one of the largest in the world. This makes it perfect for retailers who are seeking opportunities to expand their e-commerce activities and sell across the globe.
  • Marketing – a variety of businesses in different niches that host the United Kingdom create a high demand for advertising and marketing services to promote their products internationally.

Is It Worth in Your Case?

Doing business in Great Britain sounds attractive. However, is this the right option for you? Detailed consideration is required for every business case. Filing the documents and further maintenance of a legal entity always need professional advice, especially in the UK where fines for breaking the laws are high.

Whether you have doubts, need more options to choose from, or simply seek qualified assistance, deal with experienced legal advisors. Contact professionals, share your business ideas and background information – enjoy precise consultation and turnkey legal assistance!