UK Company Formation for Foreign Companies – Fraser Bond Guide

Introduction

The United Kingdom remains one of the most attractive destinations for foreign companies looking to establish a presence, invest in real estate, or conduct cross-border business. With its pro-business environment, transparent legal system, and global financial hub status, forming a company in the UK is a strategic move for many international entrepreneurs and corporations.

At Fraser Bond, we support international clients – from property investors and developers to trading entities and holding companies – with comprehensive guidance on UK company formation, structuring, and compliance.

Why Foreign Companies Choose the UK

✅ Ease of Doing Business

UK companies can be incorporated within 24 hours, with minimal bureaucracy and online systems for registration, tax, and reporting.

✅ No Residency Requirement

Non-UK nationals and companies can form a UK business without needing to reside in the UK or hold a UK visa.

✅ Global Credibility

A UK-registered company enhances your brand image, boosts investor confidence, and provides credibility for global banking, trading, and B2B relationships.

✅ Access to UK Real Estate

Foreign buyers often set up UK companies to purchase and manage property, especially for buy-to-let, development, or succession planning.

Common Reasons Foreign Companies Form UK Entities

• Holding UK residential or commercial property

• Facilitating cross-border trade and e-commerce

• Accessing UK and EU-based clients

• Launching a subsidiary or representative office

• Building a family wealth structure or trust asset base

• Simplifying mortgage financing or joint ventures

Types of UK Companies for Foreign Owners

1. Private Limited Company (Ltd)

The most common structure for both trading and investment:

• Separate legal entity

• Limited liability protection

• Taxed at 25% corporation tax (2025)

• Can have 100% foreign ownership

• Minimal capital requirements

2. Limited Liability Partnership (LLP)

Popular for investment holding, consulting, or multi-party ventures:

• Partners taxed individually (transparent structure)

• Flexible profit distribution

• No corporation tax (if structured correctly for non-UK activities)

3. UK Establishment (Branch) of a Foreign Company

Used by foreign companies expanding into the UK:

• Not a separate legal entity

• Profits taxed in the UK

• Must register with Companies House if trading

Fraser Bond helps assess the most appropriate structure based on your business model, tax profile, and long-term goals.

How to Register a UK Company as a Foreign Entity

Step-by-Step Company Formation:

1. Choose a Company Name Must be unique and meet UK naming rules.

2. Select a Registered Office Address A UK address is required (can be provided by Fraser Bond or corporate service partners).

3. Appoint Directors and Shareholders Only one director is needed. No residency requirement.

4. Define Share Capital and Ownership Declare shareholding structure (can be 100% foreign-owned).

5. File Incorporation Documents Submit via Companies House (online or through an agent).

6. Receive Certificate of Incorporation Usually within 24–48 hours.

7. Open a Business Bank Account Can be UK-based or international (may require enhanced compliance checks for foreign owners).

8. Register for Tax and Compliance

   • Corporation Tax

   • PAYE (if hiring staff)

   • VAT (if applicable)

   • AML compliance for property-related companies

Post-Formation Requirements

Once formed, UK companies must:

• File annual confirmation statements

• Submit corporation tax returns

• Maintain statutory records and accounts

• Report beneficial ownership under the People with Significant Control (PSC) register

• Comply with the Register of Overseas Entities if purchasing UK real estate

Fraser Bond and its legal partners manage these obligations on behalf of clients.

How Fraser Bond Supports Foreign Companies

Fraser Bond provides a one-stop solution for international businesses entering the UK market: