Setting Up a Company in the UK: A Comprehensive Guide to Tax Advantages, the Incorporation Process, and Official Documents

Advantages of Setting Up a Company in England

Establishing a limited company in England offers numerous advantages for entrepreneurs looking to open up to global trade.

• 19% Corporate Tax: Provides an investor-friendly tax structure with a corporate tax rate below the European average

• High Reputation and Trust: The perception of trust for a company based in England is very high among international clients and suppliers

• 500 Million European Consumer Pool: Access to a wide customer base thanks to agreements that provide duty-free export advantages

• Fast and Transparent Setup: Company registration can be completed entirely digitally in just a few days

• Open System for Foreign Entrepreneurs: A company can be established in England without residency requirements

Types of Companies and Which One is Right for You?

The most frequently preferred type for those looking to set up a company in England is the “Private Limited Company (Ltd)” structure. However, alternative types are also available for different needs.

Limited Company (Ltd)

• It is the most common type of company

• The personal assets of shareholders are protected against company debts

• Can be established by a single person, there is no limit on the number of partners

Sole Trader

• Low-cost, requires less bureaucracy

• The entrepreneur assumes full responsibility

LLP (Limited Liability Partnership)

• Suitable for professionals who work in partnership

• All partners work with limited liability

Company Setup Process: Step by Step

The company establishment process in England is carried out following these steps after deciding on the type of the company:

Choosing a Company Name

• A unique name is determined by checking Companies House

• Brand registration can also be considered separately

Preparation of Documents

• Passport and residence document

• Incorporation registration (if applicable)

• Articles of association and description of activities

Application and Registration

• An application is made to Companies House via ORTAC

• The registration process of the company is completed on average within 2-3 business days

Delivery of Official Documents

• Incorporation certificate (Certificate of Incorporation)

• Articles of association (Memorandum & Articles of Association)

• Share allocation documents

Required Documents and Approval Mechanism

Documents transmitted digitally during the setup process generally consist of the following:

• Identification Document: Valid passport or ID

• Proof of Address: Bill or bank statement issued in your name

• Company Name and Business Area: Description appropriate for the chosen sector

• Partner Information: Share distribution and appointment of directors

What are HMRC, UTR, and VAT Registrations?

After the company is established, the following registrations must be completed:

HMRC (Tax Authority) Registration

• Every company is obligated to register with HMRC

• Tax declaration and corporate tax processes are carried out through this system

UTR (Unique Taxpayer Reference)

• It is a unique identifying number for the company

• Used for all tax transactions, typically consists of 10 characters

VAT Registration

• Mandatory threshold: If annual turnover exceeds £85,000

• Voluntary registration: Preferred by exporters and importers for prestige and trust

After registration, VAT returns should be regularly submitted to HMRC.

Setting Up a Company in England with ORTAC

Setting up a company in England can be a very quick and advantageous step for those who plan the processes correctly. ORTAC provides professional support from the beginning to the end of the process.

What do we do?

• We determine the most suitable type of company

• We complete the company name and applications on your behalf

• We collect the necessary documents and conduct the entire process in English

• We carry out your HMRC, VAT, UTR, and bank registrations thoroughly

• We provide a registered office address and legal notification tracking service in London when needed

👉 To safely start your company formation process in England, contact us