UK rules
- Entity: private company limited by shares, registered at Companies House.
- Fee: £100 for digital incorporation (£124 on paper) from 1 February 2026; the annual confirmation statement costs £50.
- Identity verification: since 18 November 2025, directors must verify their identity before incorporation, and people with significant control within 14 days. Non-UK residents can verify through GOV.UK One Login with a biometric passport, or through an authorised corporate service provider.
- Registered office: must be in the UK. At least one director is needed; a company secretary is optional.
Tax
- Corporation tax 19% on profits up to £50,000, 25% above £250,000, with marginal relief in between.
- India–UK treaty rates and the 2026 trade deal: see our UK page.
The India side
| Resident individual (founder) | Indian company | |
|---|---|---|
| Route | ODI within the Liberalised Remittance Scheme | ODI under the automatic route |
| Limit | USD 250,000 per financial year (all LRS remittances together) | Up to 400% of net worth; RBI approval above USD 1 billion in a year |
| What you can invest in | Only an operating foreign company, not in financial services, and — if you control it — one with no subsidiaries of its own | Operating companies and, with conditions, holding structures |
| Reporting | Form FC through your bank; Annual Performance Report by 31 December | Form FC; Annual Performance Report by 31 December |
| Tax side | 20% TCS on remittances above ₹10 lakh a year (creditable); disclose in Schedule FA | Transfer pricing on dealings with the subsidiary |
Running the UK company from India? Read about place of effective management before you start.
Frequently asked questions
Can an Indian resident be a director of a UK company?
Yes. UK companies don't need a UK-resident director, but every director must verify their identity with Companies House, and the company needs a UK registered office.
How much does it cost to register a UK company?
The Companies House fee is £100 for digital incorporation from 1 February 2026 (£124 on paper), plus £50 a year for the confirmation statement.
What is the UK corporation tax rate?
19% on profits up to £50,000 and 25% on profits above £250,000, with marginal relief in between.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.