Company setup for UK founders
A UK limited company costs at least £170 in year 1 and £50 a year after. Here is what the usual alternatives cost, and the tax rule that applies to all of them.
| Country | Minimum, year 1 | Per year after | Typical year 1 | Corporation tax | Setup |
|---|---|---|---|---|---|
| United Kingdom | £170 | £50 | £1,510 | 19% / 25% | Fully remote |
| Estonia | £443 | £130 | £1,548 | 0% / 22% | Fully remote |
| Ireland | £580 | £437 | £2,808 | 12.5% | Fully remote |
| Netherlands | £710 | £205 | £3,283 | 19% / 25.8% | Through a provider |
| Isle of Man | £1,680 | £980 | £3,580 | 0% | Through a provider |
| Wyoming, USA | £144 | £67 | £742 | 21% | Fully remote |
| Delaware, USA | £435 | £350 | £1,220 | 21% | Fully remote |
Start with the UK
You can form a UK company online in 1 to 2 days. Small companies need no audit, and you can file the accounts yourself. Corporation tax is 25%, or 19% on profit under £50k. None of the others here costs less to run each year.
How a foreign company is taxed
A company is usually tax resident where it is managed and controlled. If you live in the UK and make the decisions here, HMRC will usually treat a foreign company as UK resident, and it pays UK corporation tax. A lower rate abroad rarely helps you. The dividends you take are taxed in the UK either way.
When a foreign company makes sense
- Selling to US customers, or using US payment and banking tools: a Wyoming or Delaware LLC.
- Raising money from US investors: a Delaware C-Corp, which is what they expect.
- Living in the EU, or planning to move: Estonia, which you can run online with e-Residency.
- Moving abroad yourself: the company follows you, so choose for the country you are moving to.
Questions
Can a UK resident own a foreign company?
Yes. Every country on this site lets a non-resident own a company. Some need a local director: Ireland, Switzerland, Singapore, Australia, India, New Zealand and Mauritius.
Will a foreign company pay less tax?
Usually not, if you run it from the UK. HMRC is likely to treat it as UK resident, so it pays UK corporation tax.
What is the cheapest company to set up?
New Mexico, at least £113 in year 1. A UK company costs at least £170.
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