New company registration in the UK and company formation in London

UK limited company
Limited liability partnership
UK establishment (branch)
Intellectual property

If you've decided to open a company in the UK and have a presence in London, it's essential to ensure that everything goes smoothly by following the correct processes and procedures for company formation in London.

This involves setting up your company as a legal entity that complies with UK law and new company registration regulations. You should also be aware of your intellectual property rights, ensuring your business can thrive in a competitive market.

Getting started with new company registration in the UK

Consider your company structure
Choosing the right legal entity for your business is crucial for its success in the UK. Is your company a limited liability partnership, a limited company or another type of entity? Factors like your projected annual turnover and number of employees may help you in deciding what applies to your circumstances.

Get registered and insured
To officially register your new company in the UK, gather all necessary documents for your tax registration and business insurance. You can get an accountant to sort this on your behalf. These documents are essential for legal and operational purposes, ensuring that your business is compliant with local regulations.

Speak to banks in advance
Start discussions with banks early when you're going through the company formation process. Once your legal entity is formed, setting up a business account will be an important next step for managing your company finances. This process can take time to organise due to checks that banks need to make as part of your application.

Register your employees
If you're bringing employees to the UK, apply for a national insurance number or a unique tax reference for each seconded employee. This is mandatory and you need to make sure every staff member is properly registered and compliant with HMRC tax law.

Ensure compliance
From organising health and safety checks to tax filing deadlines and annual reporting, staying on top of your compliance requirements will help keep your company running smoothly and avoid any financial penalties. You can outsource some of these responsibilities if you need to.

London is very easy to work in and a very business-friendly city. The process was a lot less complex than we expected. It took just six months from the initial idea to opening the office.

Will Fleming
President and CEO, MotionPoint

Which legal entity should I choose for my new UK company registration?

If you have decided to form a company in London or register a new company in the UK, it's important to choose the right legal structure for your business. Here are the most common options:

UK limited company

A UK limited company is one of the most popular choices for a new registration. It's a business structure owned by shareholders and managed by its directors. This type of entity is quick and affordable to set up, with a corporate tax rate of 19%.

Pros:

Fast and cost-effective setup.
Widely recognised and respected company structure.
Directors and shareholders benefit from limited liability protection.
Only one director required.
Managers and owners can be different indivuals.
Can easily raise capital by issuing shares.
Tax incentives available, including no withholding tax on dividends.
No minimum share capital requirement.
Potential eligibility for tax-efficient schemes such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).
Overseas parent companies are not liable for UK taxes.

Cons:

Corporation tax is due on worldwide profits and gains.
Accounts may require auditing if your business exceeds certain amounts.
Information about directors, accounts and persons of significant control (PSCs) can be found publicly via Companies House and HMRC.

Visas for overseas employees:

Skilled Worker sponsor licence.
Global Business Mobility (Senior or Specialist Worker sponsor licence).
UK Expansion Worker sponsor licence.
Innovator Founder visa route.

Learn more about UK visas for business owners and employees.

Limited liability partnership (LLP)

An LLP gives more flexibility thanks to its simple structure and rules for how profits can be divided among partners. It's a transparent option for tax purposes, and is commonly used for an Innovator visa and Tier 2 visa sponsorship.

Pros:

Simple setup.
Partners decide how to divide profits and manage payments.
LLPs don't pay corporation tax. Instead, partners are taxed individually on their share of profits.
Efficient transfer of profits between partners.
Can have corporate partners, and both designated and non-designated partners.

Cons:

Not as widely recognised as a limited company.
Requires at least two partners to set up.
Only corporate partners can access R&D tax incentives.
Accounts are publicly available through Companies House.
Must disclose all significant persons.

Visas for overseas employees:

Skilled Worker sponsor licence.
Global Business Mobility (Senior or Specialist Worker sponsor licence).
Innovator Founder visa route.

Learn more about UK visas for hiring overseas talent.

UK establishment (branch)

The place of business or branch of an overseas company within the UK. Effectively, it’s a direct extension of the overseas company, officially registered at Companies House and the tax authorities to trade.

Pros:

Tax losses from your home country may be offset against UK profits.
No UK audit of accounts required.
Potentially better credit terms if the overseas company is established.
Could qualify for UK R&D relief and access to tax-efficient schemes like EIS and SEIS (conditions apply).

Cons:

More complex registration process compared to a limited company.
No separate limited liability from the parent company.
The home company and UK branch are exposed to risks in both jurisdictions.
Must file group accounts with Companies House.
If the parent company is in a jurisdiction with a higher corporate tax rate, it may not benefit from the UK’s lower tax rate (19-25%).
Could be seen as a temporary or early-stage business activity by investors.
Must be officially registered at Companies House.

Visas for overseas employees:

Skilled Worker sponsor licence.
Global Business Mobility (Senior or Specialist Worker sponsor licence).
UK Expansion Worker sponsor licence.
Innovator Founder visa route.

Learn more about UK visas for international employees.

Get help with setting up your company in London

Intellectual property

If you're forming or registering a new company in the UK, there are several forms of intellectual property rights (IPRs) which can protect a wide variety of different creations, including brand names, logos, inventions, designs, text and images.

The main forms of IPRs in the UK are:

Form of protection	Examples of what can be protected	Duration
Registered trademarks*	Your brand names, business names, domain names, social media handles, logo and product names (but also, potentially packaging, colours, shapes and the like).	10 years, but can be renewed potentially indefinitely.
Rights in passing-off	Your brand names, domain names, social media handles, goodwill and reputation, including packaging.	Potentially indefinitely.
Registered* and unregistered designs	Packaging, the whole or part of a product, 3D shape or configuration, product shapes, graphic designs and surface decoration.	Generally 3 to 25 years depending on which form of design.
Copyright and database rights	Investment in databases, text (such as product descriptions), images, pictures and drawings (such as design documents, marketing materials and product packaging), films, music and software, consumer and sales details.	Generally 70 years from the death of the creator.
Patents*	Inventions. Ones which are essentially a business model are harder to protect.	20 years.
Confidential information	Any commercially sensitive information such as customer or supplier information, know-how, manufacturing processes and product launches.	Potentially indefinitely.

*Registration is required for a right to arise.

Content provided by Moore Kingston Smith, Taylor Wessing and Oury Clark. This information is intended for general guidance only. You should always seek professional advice.

Last updated: January 2025

How London & Partners can help

Our team offers free advice to potential investors, from startups to established companies, on how to register a company in the UK. We can:

Connect you to legal and business experts specialising in setting up UK entities.
Introduce you to intellectual property specialists who can advise you on how to protect your inventions, designs and ideas.
Offer general advice on setting up your company in London.