UK Limited Company from India: Setup, Tax and Compliance

The UK is one of the easiest places in the world to form a company on paper. An Indian founder can own and direct a UK private limited company without living there, and online incorporation usually takes about a day once the identity checks are done. The work is in what follows: identity verification, UK tax, a bank that will take you, and a filing calendar that Companies House enforces with automatic penalties.

This is how I walk a founder through it, from deciding whether the UK makes sense to the Indian filings that come with it. UK fees and rates change with each Budget, so every figure can change, and UK tax positions should be confirmed by a UK accountant.

When a UK company makes sense

A UK Ltd fits when you have, or genuinely expect, UK or European customers who prefer contracting with a local entity, when partners or public-sector buyers need a UK counterparty, or when a co-founder or team sits in the UK. It is also a credible English-law company for contracts with global clients.

It is a weak fit as a tax play. The UK taxes company profits at rates comparable to India's, and a UK company that is actually run from India can raise residence questions in both countries. If your customers are mostly in the US and you plan to raise from US investors, a Delaware company usually serves you better.

What Companies House needs, including ID checks

The structure is light: at least one director who is a natural person, at least one shareholder, a UK registered office address and a statement of capital, with no minimum capital. The director can live in India. Their home address stays on the private record, while a service address appears on the public register.

Anyone holding more than 25% of the shares or votes, or otherwise controlling the company, is recorded as a person with significant control (PSC). A company secretary is optional for a private company.

From 18 November 2025, new directors and PSCs must verify their identity, through GOV.UK One Login or an authorised corporate service provider, with existing ones brought in over a transition period. Build this into the timeline. The digital incorporation fee is around GBP 100.

Corporation tax and the associated companies trap

A UK company pays corporation tax at 19% on profits up to GBP 50,000 and 25% above GBP 250,000, with marginal relief in between. Those limits are divided by the number of associated companies, and the count includes companies abroad under common control, such as your Indian company. A UK subsidiary of an Indian company can therefore reach the main rate at a lower profit than the headline bands suggest.

HMRC issues a Unique Taxpayer Reference after incorporation, and you must tell HMRC within three months of starting to trade. Tax is normally payable nine months and one day after the year end, and the CT600 return is due within twelve months.

VAT registration becomes compulsory once UK taxable turnover crosses GBP 90,000 in a rolling twelve months, at a standard rate of 20% with digital quarterly returns. An overseas business with no UK establishment may have to register from its first UK taxable supply, so check this early.

Opening a UK business bank account

High-street UK banks generally expect a UK-resident director or a real UK trading footprint, so most India-based founders start with an electronic money institution such as Wise Business, Revolut Business, Tide or Airwallex, subject to each provider's policy. These providers safeguard customer money but are generally not covered by the UK deposit protection scheme (FSCS), so avoid holding large balances in one place.

Expect questions on source of funds. The money you send from India should go through the LRS or ODI route with the bank's paperwork, because that trail is exactly what the UK provider will ask to see.

The annual calendar and penalties

Companies House enforces its deadlines automatically. Miss one and the penalty arrives without anyone reading your explanation.

Persistent failure to file can lead to the company being struck off, and directors can face prosecution. A dormant company still files.

• Confirmation statement at least once every 12 months, filed within 14 days of the review date, with a fee of about GBP 50.
• Annual accounts within 9 months of the accounting reference date for a private company, with a longer window for the first accounts.
• Late accounts penalties rising with the delay, from about GBP 150 to GBP 1,500, and doubling if accounts are late two years running.
• Corporation tax payment at 9 months and 1 day, the CT600 at 12 months, and VAT returns if registered.
• PSC and director changes reported to Companies House within the deadline.

The India side

Funding the UK company is overseas investment under FEMA: personally within LRS as ODI by an individual, or through your Indian company under the ODI route, with Form FC through the AD bank at the start. After that come the Annual Performance Report by 31 December, the FLA return by 15 July for an Indian company investor, and Schedule FA in each resident owner's income tax return.

Where the Indian and UK companies trade with each other, transfer pricing documentation applies, and the India-UK tax treaty governs withholding and residence questions. If the UK company's key decisions are in fact taken in India, it can be treated as resident in India under the place of effective management rules, so hold board decisions where you say the company is run.

Frequently asked questions

Can an Indian resident be the only director and shareholder of a UK company?

Yes. A UK private limited company can have a single director and shareholder living in India, once the identity checks and a UK registered office are in place.

Do I need a UK address?

The company needs a UK registered office address, which many founders take from a registered office service. Your home address in India stays off the public register.

Will my UK company get the lower small profits rate?

Only on small profits, and the thresholds are split across associated companies, including your Indian company. Your UK accountant should model the actual rate.

Does a UK company give me a UK visa?

No. Forming a company does not by itself give any right to live or work in the UK. Immigration is a separate process with its own criteria, handled by a UK immigration adviser.

Related guides

• Foreign incorporation for Indian founders
• UK company registration from India
• ODI reporting: APR and FLA annual compliance
• All services