Countries/United Kingdom
United Kingdom

Starting a business in United Kingdom

Fifty pounds and a day to a real company. The cost arrives later, in corporation tax charged on profit whether you draw it or not.

Limited company or Sole trader?All guides
At a glanceVerified Sep 2026
25%
Main rate
19%
Below GBP 50,000
20%
VAT
GBP 1
Minimum capital
Verified against official sourcesSee citations →

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United Kingdom guides
Company formationRegistration steps, costs, timelines and documents.Corporate taxRates, VAT and the reliefs that actually apply.Business lawsCompliance, UBO rules, labour law and penalties.Free zonesChoosing a zone, setup process, mainland comparison.Banking & financeBusiness accounts, payment gateways, crypto rules.Visas & residencyGolden, investor and freelance visa pathways.

The decision that shapes everything: limited company or sole trader

Limited company
Companies House Ltd
  • Liability stops at the company
  • 19% to 25% corporation tax, then tax on dividends
  • Accounts and a confirmation statement filed publicly
  • Identity verification is now mandatory for directors
vs
Sole trader
Self Assessment
  • No incorporation, no filing fee
  • Income tax and National Insurance on all profit
  • You are personally liable for business debts
  • Simplest option until profit makes the Ltd worth it

All United Kingdom guides

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