How to register a company in the UK: A guide for employers

Grow in the United Kingdom, one of the world’s most resilient economies.

The United Kingdom (UK) is an ideal environment for entrepreneurs and international companies that want to expand. With a well-regulated business ecosystem, highly skilled workforce, and supportive government policies, businesses of every size can benefit from this nation’s pro-business ecosystem and seamless integration into international markets.

This guide covers essential information about company registration in the UK, key costs, the potential benefits of expanding your business here, and how an Employer of Record (EOR) could be a more practical, cost-effective alternative.

The business benefits of registering your company in the UK

Registering your company in the UK can fuel business growth. From gaining access to international markets to benefiting from a skilled workforce and government incentives, here’s why the UK is an attractive destination for growing businesses:

• Global business environment: As of 2025, the UK has over 39 trade agreements with over 70 partners across Europe, Asia, the Pacific, and the Americas.
• Competitive tax regime: The UK’s corporate tax rates are far lower than other G7 countries like France, the United States, and Germany.
• Skilled workforce: 
  • Its flexible labor laws have helped it build a highly educated and diverse talent pool, excellent for finance, tech, and services sectors.
  • London is among the world’s most connected financial hubs, attracting talent from all corners of the globe.
• Government incentives:
  The UK government offers a range of incentives for new businesses, including tax credits for research and development (R&D) through the R&D Expenditure Credit (RDEC) scheme or the new R&D merged scheme.
• Technology and innovation hub:
  • With 171 unicorns and a staggering $1.1 trillion market valuation, the UK tech sector is Europe’s leading tech powerhouse.
  • Manchester, considered one of the most vibrant and modern cities in Europe, is at the heart of a booming £5 billion digital ecosystem. 

And we can expect more growth opportunities. In November 2024, the UK government introduced Invest 2035—a bold 10-year strategy that focuses on removing barriers, attracting investment, generating high-quality jobs, and ensuring that economic growth benefits communities across the UK. This initiative will prioritize eight high-potential industries: advanced manufacturing, clean energy, creative industries, defense, digital and technology, financial services, life sciences, and professional and business services.

With so many advantages, it’s easy to see why the UK is a top choice for business expansion. But before setting up operations, there’s a key decision to make: Should you register a company or partner with an EOR for a smoother, faster expansion?

What is the difference between standard company registration and expanding through an EOR?

Standard company registration requires establishing a local entity in the UK while expanding via an EOR enables you to operate without a formal entity setup

Let’s explore the difference:

Aspect	Standard company registration	Expanding through an EOR
Purpose	Establish a legal entity in the UK	Operate in the UK without a local entity.
Control	Full control over operations	Limited control (EOR handles admin)
Cost	High initial costs, ongoing fees	Single, predictable fee with bundled services.
Compliance	Direct responsibility for legal compliance.	EOR handles compliance
Setup time	Can take weeks or months to complete.	Quick setup (often within days)
Scalability	Scalability depends on the size of the entity.	Easily scalable with minimal effort.

Because establishing a legal entity in the UK involves various regulatory requirements, many businesses choose an Employer of Record (EOR) for faster, compliant, and cost-effective market entry.

How an EOR simplifies UK company registration

When expanding to the UK, an EOR can help your company avoid local registration and compliance complexities. You don’t require additional administrative support for your expansion and can focus on your core operations.

Key benefits of using an EOR in the UK:

• Effortless market entry: Quickly establish your presence in the UK without setting up a formal legal entity.
• Payroll and tax management: Ensure full adherence to UK payroll regulations and tax requirements with expert management.
• Labor law compliance: Avoid legal issues. Your EOR provider will likely have many experts well-versed in UK labor laws.
• Cost savings: The EOR is a cost-effective solution for managing workforce needs without increasing your administrative costs.
• Scalability: With an EOR it’s easy to hire, scale, or exit the UK market.

However, an EOR is insufficient when importing or exporting goods in your company name. Also, if your business wants to raise investors in the UK or raise an IPO, you might benefit from company registration. The next section is a detailed guide.

A step-by-step guide to registering a company in the UK

Setting up a company in the UK can seem challenging, but following a clear, step-by-step process ensures a smooth registration. Selecting the right business structure and meeting compliance requirements are key steps toward building a strong and successful presence.

Step 1: Choose a company name

Choose and register your UK company name. Use the Companies House name availability checker to ensure your desired name is available and consider trademarking it for protection.

Choose a unique business name that complies with UK regulations—it mustn’t include offensive language, sensitive terms, or restricted words without approval.

Step 2: Select a business structure

Most businesses in the UK register as either sole trader or a limited company, but there are other options too.

Your choice of business structure impacts how you pay taxes and what legal responsibilities you have. You can switch structures later if needed—transitioning from a sole trader to a limited company is typically the easiest move.

• Sole trader:
  • If you’re self-employed and earn at least £1,000 a year, you need to register with HM Revenue & Customs (HMRC) as a sole trader.
  • Owners are personally responsible for all debts and obligations, as per the UK government.
• Private limited company:
  • With a private limited company, your personal finances are protected—owners are only responsible for business debts up to the amount they’ve invested. 
  • It can’t offer their shares for sale to the public.
  • It limits risk if things don’t go as planned.
  • No minimum investment requirement to become a shareholder.
  • You require at least one company director and one shareholder.
• Public limited company: 
  • Listed on the stock market, which comes with stricter tax and financial reporting requirements. 
  • To go public in the UK, a company must issue public shares worth at least £50,000.
  • You require a minimum two directors and a qualified company secretary.
• Business partnership: 
  • You have two types: limited partnerships and limited liability partnerships (LLPs). 
  • Limited partnerships: 
    • You require at least one general partner and one limited partner.
    • General and limited partners have different roles when it comes to responsibility and liability for business debts. While all partners pay tax on their share of the profits, general partners take on more liability, while limited partners have their liability capped.
  • LLP: 
    • You require at least two members. A member can be a person or a company, known as a corporate member.

As per the UK government. other business structures include a social enterprise, an overseas company, and an unincorporated association.

Step 3: Choose directors and a company secretary

Directors are in charge of running the company and ensuring that all the accounts and reports are in order. While directors needn’t live in the UK, the company must have a UK-based registered office address.

Directors’ names and details are made public through Companies House. They must also provide a service address (which can be different from their home address) which will also be publicly listed. If a director prefers not to share their home address, they can request it be removed from the public register.

A company secretary can also be a director, but they can’t be:

• The company’s auditor
• An ‘undischarged bankrupt’ (unless they have court permission). When someone is bankrupt, they face restrictions until discharged (meaning their debts are cleared). You can check if someone is discharged using the Insolvency Register.

Step 4: Decide who the shareholders or guarantors are (if applicable)

When you’re setting up a limited company, you need at least one shareholder or guarantor, who can be a director. Simultaneously, you need to identify who is the person with significant control (PSC) of your company.

A PSC is someone who owns or controls your company, often called a ‘beneficial owner.’ It could be you or someone else connected to your company. A company can have one or more PSCs. You’ll need to record their details in your company’s PSC register and include this information when you set up your company.

Step 5: Prepare your documents 

When you register your company, you’ll need:

• A signed memorandum of association: This is a legal statement signed by all the initial shareholders or guarantors agreeing to form the company.
• Signed articles of association: These are the written rules for running the company, agreed upon by the shareholders, directors, and company secretary.

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Step 6: Register with Companies House and get your SIC code

• As per the UK government website, you’ll need to provide a registered office address and an email address when setting up your company. 
• You’ll additionally need to get your SIC (Standard Industrial Classification) code, which helps classify your business for data and reporting. Provide this code to Companies House when registering your business.
• You can use the service on the UK government website to register your company with Companies House. Once registered, you’ll receive a certificate of incorporation, which confirms that your company legally exists and includes the company number and formation date. 
• When you register your company, you’ll also need to create a separate Government Gateway user ID and password specifically for your company to access HMRC’s online services. You can’t use your personal Government Gateway ID for this.

Step 7: Register for taxes

• Corporation Tax
  • To register for corporation tax, you’ll need your Unique Taxpayer Reference (UTR), which HMRC will send you a few weeks after your company registration is successful. Once you have your UTR, log into your Government Gateway account and select the option to add a tax. Choose “corporation tax,” then enter your company’s registration number and the date you started operating in the UK.
  • The current corporation tax rate for limited companies is between 19% and 25%.
• Pay as you earn (PAYE)
  • As per the GOV.UK website, if you plan on hiring employees (or paying yourself), you’ll need to register for PAYE, which handles income tax and National Insurance contributions. Here’s how:
    • Register as an employer with HMRC.
    • Log into your Government Gateway account and add PAYE for employers.
  • This will allow you to manage payroll, salary payments, National Insurance, and income tax.
• Value Added Tax (VAT)
  • If your company’s annual turnover exceeds the VAT threshold (currently £90,000 over the last 12 months), you’ll need to register for VAT. If you expect your turnover to exceed the threshold soon, you can register within 30 days of reaching that point.

Looking for an easier way to manage payroll and taxes? Multiplier’s fully managed, compliant payroll system handles multi-country taxes, benefits, and compensation with precision. Ensure your workforce feels valued by providing a seamless and reliable payment experience.

Step 8: Open a business bank account

Most businesses in the UK need to have a business account with a local bank. To set it up, the bank will ask for identification documents for all directors and partners. You’ll also need to provide proof of your business address, your Companies House registration number, and an estimate of your annual turnover. Some banks might ask for extra details, like a business plan or financial projections, especially if you’re applying for credit or a loan.

Multiplier’s EOR solution makes hiring in the UK fast and compliant. It streamlines operations with global payroll and a full-suite workforce management platform—helping you save time and reduce costs.

Now that you understand the setup process in the UK, let’s dive into the actual costs and financial considerations.

The real cost of registering a business in the UK

The cost of registering a company in the UK depends on factors like the type of business, how you register it, and any extra services you might need. Understanding these details is important for planning your budget and making sure everything goes smoothly.

Here are the main costs to consider:

• Registration costs: £50 for Companies House online service. For same-day registration, the fee increases to £78.
• Share capital: No minimum share capital is required for a private limited company. For a public limited company, it’s £50,000.
• Recurring expenses: Ongoing costs include the Confirmation Statement, maintaining a registered business address, filing annual accounts (either on your own or with accounting services), and fees to keep your UK business and accounts compliant.
  • File your Confirmation Statement annually to Companies House via the GOV.UK website for £34 if it’s online and £62 if it’s in paper form.
  • Maintaining a registered business address: Typically £100 per year
  • Accounting and tax services: Starting at £71 per month

Note: The costs above are indicative and may vary based on your business needs. To get a clear estimate tailored to your expansion plans, talk to our experts.

When using an EOR like Multiplier, you pay a single, predictable fee. This covers all compliance, payroll, and administrative services, reducing many consultation and maintenance costs.

If speed, cost-efficiency, and agility are your business priority, an EOR is a low-risk solution—enabling rapid hiring and lower administrative overheads.

Cost comparison: standard registration vs. EOR

Here’s a quick comparison between the costs of registering a company in the UK and expanding through an EOR.

Cost category	Standard registration	EOR
Setup costs	£50-£78 for registration	Single, predictable fee
Maintaining a business address	£100 per year	Included in EOR service
Filing an annual Confirmation Statement	£34 if it’s online and £62 if it’s in paper form	Included in EOR service
Accounting and tax services	Starting at £71 per month	Included in EOR service
Minimum share capital	For a public limited company, it’s £50,000.	An EOR minimizes upfront costs for you

Multiplier’s EOR services significantly reduce setup and ongoing costs, as they bundle services like payroll, compliance, and HR into one fee, offering more predictability and less administrative burden.

Why choose Multiplier for your UK expansion

Expanding your business in the UK can be seamless and cost-effective with an EOR like Multiplier. We serve as the official employer for a company’s overseas employees, handling key HR tasks like payroll, tax compliance, employment contracts, and benefits management on the company’s behalf.

Key benefits of working with Multiplier:

• Local hiring expertise: Whether you’re recruiting UK-based talent or relocating employees, we ensure employment contracts comply with UK labor laws and provide smooth onboarding.
• Effortless payroll management: Say goodbye to payroll complexities. We manage salary payments, tax deductions, pensions, and other employee benefits, ensuring accuracy and compliance.
• Compliance assurance: Our experts stay up to date with UK employment regulations, tax laws, and workplace policies, keeping your business fully compliant.
• Attractive benefits packages: Gain a competitive edge in hiring with locally tailored benefits, including private health insurance, pension contributions, and employee perks.
• Comprehensive HR solutions: Our intuitive platform simplifies everything from onboarding to leave management, making HR administration hassle-free.

Ready to expand in the UK without the stress? Book a demo today and see how Multiplier makes expansion effortless.