1. What types of company can be formed in the United Kingdom?

There are two types of limited company in the United Kingdom:

  • Public Limited Company (PLC)
  • Private Limited Company (LTD)

2. What is the minimum share capital for each company type in the United Kingdom?

  • Public Limited Company (PLC): £50,000 in shares, of which at least 25% must be paid up
  • Private Limited Company (LTD): £1.00 either as shares or as a guarantee from the company members

3. Are there any requirements relating to company management in the United Kingdom?

The management of a Private Limited Company (LTD) must comprise at least one Director.

The management of a Public Limited Company (PLC) requires two Directors.

4. What documents are required for company formation in the United Kingdom?

To form a company the following documents must be submitted to the company registry (Companies House):

  • Memorandum of Association
  • Articles of Association
  • Required Legal Forms (only available via the company registry)

5. What is the company registration process in the United Kingdom?

An application is made by submitting the required legal forms (see above) to the UK company registry, known as Companies House.

The application can be made by anyone, but will be rejected if documents are not correct and do not follow the law.

The registration itself can be completed within 14 days.

6. Are details of company ownership public in the United Kingdom?

The ownership of company shares is filed annually to Companies House and can be viewed for free via the Companies House website.

7. Can a foreign individual or company own shares in a UK company?

Foreign persons and companies can own shares in a UK company as long as Anti-Money Laundering Act requirements for documentation are met.

8. What is the corporate tax rate in the United Kingdom?

The corporate tax rate in the UK is 21%.

9. What are the rules for issuing dividends from UK companies?

Rules for issuing dividends are set out in the Articles of Association at the time of incorporation.

Usually it is permitted for Directors to declare final or interim dividends where there are profits available to do so.