United Kingdom vs Estonia
Company formation costs side by side
EntityPrivate limited company (Ltd)Private limited company (OÜ)
Legal minimum, year 1£170£573
Legal minimum, per year after£50£130
Typical year 1£1,585£1,786
Government fee£100 (£100 online)£228 (€265 state fee)
Indirect setup£20 to 300£215 to 725
Running per year£50 to 2,600£130 to 2,045
Share capital£1€0.01
Time to form1 to 2 days1 to 3 days
AuditExempt for small companiesExempt below thresholds
DirectorsNo resident director neededNo resident director; a local contact person is mandatory if managed abroad
Remote formationFully online; directors must pass Companies House ID verificationFully online with an e-Residency card (one embassy pickup)
Corporation tax25% (19% under £50k profit, marginal relief between)0% on retained profit; 22% on distributions (22/78). Planned rise to 24% repealed Dec 2025
Dividend withholding0% on dividends0% (tax paid by company on distribution)
VAT/GST20%24%
Foreign owner ease5 of 55 of 5
Banking3 of 5. High street banks often refuse non-residents; Wise, Revolut, Airwallex and Tide are usually fine3 of 5. Local banks (LHV, Swedbank) selective with e-residents; Wise and Revolut common
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