How to start a business in United Kingdom as a foreigner (2026)

Legal framework

Companies Act 2006 (as amended by the Economic Crime and Corporate Transparency Act 2023), administered by Companies House

Starting a business in United Kingdom as a foreigner

The usual vehicle for a foreigner starting out in United Kingdom is a private limited company (Ltd), registered with Companies House.

Company type

a private limited company (Ltd)

Registered with

Companies House

Minimum capital

no minimum share capital

Timeline

usually within 24 hours online

Government cost

£100 online registration fee

Foreign ownership

100% foreign ownership allowed; no UK residency required, but a UK registered-office address and ID verification are needed

Rules and fees change; confirm with the official registry before incorporating.

Key points: starting a business in United Kingdom

1. 01No foreign-ownership restrictions

   Non-UK nationals and non-residents may be directors, shareholders, or sole 100% owners of a UK private limited company. At least one director who is a natural person aged 16 or over is required; no UK residency is mandated for directors or shareholders.

   gov.uk gov.uk

2. 02No minimum share capital (private companies)

   Private limited companies face no minimum paid-up capital requirement under the Companies Act 2006. The £50,000 authorised minimum applies exclusively to public limited companies (PLCs).

   legislation.gov.uk gov.uk

3. 03Fast online incorporation, £100 fee

   Companies are registered fully online via Companies House and are typically approved within 24 hours. The digital incorporation fee is £100 as of 1 February 2026 (paper applications cost £124). A certificate of incorporation is issued confirming legal existence.

   gov.uk gov.uk gov.uk

4. 04UK registered office address required

   The company must maintain a physical registered office address in the same UK nation in which it is incorporated (England & Wales, Scotland, or Northern Ireland). Directors and shareholders need not reside in the UK; a virtual or third-party address service satisfies this requirement.

   gov.uk companieshouse.blog.gov.uk

5. 05Mandatory identity verification (from 18 Nov 2025)

   Under the Economic Crime and Corporate Transparency Act 2023, all directors and PSCs must verify their identity via GOV.UK One Login (free) or an Authorised Corporate Service Provider (ACSP) before or at incorporation. Existing companies had a 12-month transition period commencing 18 November 2025; non-compliance may result in prosecution or financial penalty.

   gov.uk gov.uk legislation.gov.uk

6. 06Overseas companies / branches require separate registration

   A foreign company that opens a UK place of business or branch must separately register as an overseas company with Companies House (form OS IN01, £124 fee) within one month of commencing UK operations, and must file certified constitutional documents. This is distinct from incorporating a new UK entity.

   gov.uk gov.uk

Starting a business in United Kingdom: FAQ

Timeline of decisions

1. 1 Feb 2026Decision · official
   Companies House Raises Incorporation Fee to £100

   The digital incorporation fee doubled from £50 to £100 and the annual confirmation statement fee rose to £50, funding the continuing rollout of ECCTA 2023 reforms. This marked the second major fee rise in under two years, bringing the cost of registering a company to more than eight times its 2023 level.

   Companies House / GOV.UK

2. 18 Nov 2025Law · official
   Mandatory Director and PSC Identity Verification Launches

   Under ECCTA 2023, all new directors and persons with significant control must verify their identity with Companies House using a passport or driving licence before incorporation or appointment; existing officers have a 12-month transition period. The UK became the first major jurisdiction to require real-time identity checks at the point of company formation.

   Companies House / GOV.UK

3. 1 May 2024Decision · official
   Companies House Raises Incorporation Fee 317%, from £12 to £50

   The standard digital incorporation fee rose from £12 to £50 and the confirmation statement fee from £13 to £34, the first significant fee revision in over a decade, to fund Companies House's expanded gatekeeper powers under ECCTA 2023. Same-day incorporation also jumped from £30 to £78.

   Changes to UK Company Law (GOV.UK campaign)

4. 4 Mar 2024Law · official
   First ECCTA 2023 Reforms Enter Force: Enhanced Powers and Registered Email Mandate

   Companies House gained new statutory powers to query, challenge, and reject suspicious or fraudulent filings; all companies became required to supply a registered email address and declare a lawful purpose on incorporation; and proactive data-sharing powers with law enforcement were activated. This was the first operational phase of the most ambitious UK corporate-registration overhaul since 1844.

   Changes to UK Company Law (GOV.UK campaign)

5. 26 Oct 2023Law · official
   Economic Crime and Corporate Transparency Act 2023 Receives Royal Assent

   ECCTA 2023 transformed Companies House from a passive registrar into an active gatekeeper by mandating identity verification, granting powers to scrutinise and suppress inaccurate filings, introducing a lawful-purpose statement at incorporation, and creating a new 'failure to prevent fraud' corporate offence. It provided the legislative framework for all subsequent 2024-2026 implementation steps.

   legislation.gov.uk

6. 1 Aug 2022Law · official
   Register of Overseas Entities Goes Live

   Overseas entities owning or seeking to buy UK land must now register with Companies House and disclose their beneficial owners; those already holding UK property had until 31 January 2023 to comply. The register was created to end the use of opaque foreign corporate structures to hold UK real estate anonymously.

   Companies House / GOV.UK

7. 15 Mar 2022Law · official
   Economic Crime (Transparency and Enforcement) Act 2022 Receives Royal Assent

   Fast-tracked through Parliament in just 14 days in response to Russia's invasion of Ukraine, the Act created the Register of Overseas Entities, strengthened unexplained-wealth orders, and imposed strict civil liability for financial-sanctions breaches. Its speed of passage was unprecedented in modern UK corporate law.

   House of Commons Library

8. 6 Apr 2016Law · official
   People with Significant Control Register Launched

   The UK became the first G20 country to maintain a publicly searchable central register of beneficial owners, requiring all companies to record individuals holding more than 25% of shares, voting rights, or other control; the register was made freely searchable via Companies House from 30 June 2016. The requirement also replaced the annual return with the simpler annual confirmation statement.

   Companies House Blog

9. 26 Mar 2015Law · official
   Small Business, Enterprise and Employment Act 2015 Receives Royal Assent

   The Act abolished bearer shares, prohibited corporate directors (subject to exemptions), mandated the forthcoming PSC register, and replaced the annual return with the confirmation statement, all aimed at making the UK the most attractive place to start and grow a business while closing corporate-opacity loopholes. It was described as the most significant company-law reform since the Companies Act 2006.

   legislation.gov.uk

10. 1 Oct 2009Law · official
    Companies Act 2006 Fully Enters into Force

    The final tranche of provisions of the Companies Act 2006 took effect, completing a phased three-year implementation; the Act had, for the first time, enabled fully online company incorporation and established a single consolidated companies statute with simplified rules for small private businesses. This date marks the foundation of today's registration regime.

    legislation.gov.uk

11. 8 Nov 2006Law · official
    Companies Act 2006 Receives Royal Assent

    At 1,300 sections, the Companies Act 2006 was then the longest Act ever passed by Parliament and delivered the most wide-ranging reform of UK company law in over 20 years, replacing the Companies Act 1985; it codified directors' duties in statute, simplified formation requirements for small companies, and laid the digital infrastructure for online registration. It remains the primary legislative framework governing UK company formation today.

    legislation.gov.uk

Sources

1. 1.gov.uk/limited-company-formation/register-your-company
2. 2.gov.uk/limited-company-formation/appoint-directors-and-company-secretaries
3. 3.gov.uk/limited-company-formation/company-address
4. 4.legislation.gov.uk/ukpga/2006/46/part/17
5. 5.legislation.gov.uk/ukpga/2023/56
6. 6.gov.uk/government/news/companies-house-confirms-identity-verification-rollou
7. 7.gov.uk/guidance/verify-your-identity-for-companies-house
8. 8.gov.uk/government/news/companies-house-fees-are-changing-from-1-february-202
9. 9.gov.uk/government/publications/companies-house-fees/companies-house-fees
10. 10.gov.uk/register-as-an-overseas-company
11. 11.gov.uk/government/publications/overseas-companies-in-the-uk-registration-fil
12. 12.gov.uk/limited-company-formation/shareholders
13. 13.gov.uk/limited-company-formation
14. 14.companieshouse.blog.gov.uk/2021/10/05/how-to-choose-or-change-your-companys-registered-office-ad