Things to Know About Company Formation in the UK

Establishing a company in the UK is quite simple and fast. Generally, LTD (Limited) type company is preferred. The application for incorporation is made online and the Company Number is obtained within 24-72 hours on average. The registration of the company takes place through the Companies House system. The AuthCode is sent to you after this stage and is used for all management operations of your company.

You may want to read the guide on opening a LTD company in the UK and its taxes.

UTR (Unique Taxpayer Reference) is a 10-digit taxpayer number issued by HMRC . HMRC sends you the UTR number by post when you set up a company in the UK. This number is mandatory for the company's tax returns (Corporation Tax Return, Income Tax, VAT etc.).

Authcode is a special 6-digit access code used to update your company details on the Companies House portal. Once your company incorporation is completed, the official registration is mailed to your address. With this code, you can change your company manager, change your address or make account submissions.

 A DUNS number is a 9-digit global company identification number issued by Dun & Bradstreet. Companies engaged in international trade can request a DUNS number when registering on platforms such as Amazon Brand Registry and Apple Developer.

HMRC (His Majesty's Revenue and Customs) is the UK's official tax and customs authority. All tax registration, UTR allocation, VAT registration, EORI applications and declarations are handled by this agency.

VAT (Value Added Tax) is the UK's VAT system. The mandatory threshold is £90,000 annual turnover. However, if you are going to sell in stock, such as Amazon FBA, VAT registration is recommended even before reaching this threshold. Platforms like Amazon and Shopify ask you for a VAT number as soon as stock is held.

 After the company is established:

• A declaration must be made to HMRC for Corporation Tax.
• If VAT is registered, a VAT Return must be submitted every 3 months.
• An annual Confirmation Statement must be filed with Companies House.
• Company accounts (Statutory Accounts) should be prepared and submitted.

 As of 2025, the UK corporation tax rate is 19%. However, if your annual profits are over £50,000, this rate can go up to 25%. This rate is calculated on the company's tax base.

Income tax applies to individuals. As of 2025:

• Up to £12,570: Tax-free (Personal Allowance)
• Between £12,571 - £50,270: 20%
• £50,271 to £125,140: 40
• £125,141 and above: %45

Government Gateway is the digital portal used to access the HMRC system. All tax transactions such as UTR, VAT Return, Corporation Tax are made from this system. The company manager is given a special username and password.

The EORI (Economic Operator Registration and Identification) number is mandatory for customs clearance for companies trading with the European Union. If you are an Amazon seller sending products from the UK to Europe, you can get this number from HMRC in 1-3 working days. EORI number inquiry can be done on the official website of the European Commission.

 Dormant means a company that is inactive, not carrying on any business activity. Dormant companies file blank annual accounts and report "no activity" to HMRC.

• Ease of intra-European trade
• Fast and cost-effective deployment
• Access to marketplaces such as Amazon UK, eBay UK
• Corporate identity and credibility
• Low taxation structure
• - Digital process management with embedded accountant

Depending on the service:

• VAT Registration £250
• VAT Return (3 months): £100
• Confirmation Statement: £75
• Annual Tax Return and Statutory Accounts: £250-400
• Strike-off: £75

  You can search for company name, company number, directors and financial reports for free on the Companies House website.

The SIC (Standard Industrial Classification) code defines the company's field of activity. It is mandatory to choose at least one SIC code when establishing a company.