Establish and Grow Your Business in the UK

Foreign companies can establish a UK presence through four main structures: a Private Limited Company (Ltd), a Limited Liability Partnership (LLP), a Branch Office, or a Representative Office. Incorporation at Companies House is completed online in 24-48 hours for a Ltd or LLP — no minimum share capital required. A Branch Office requires registration as an overseas company under the Companies Act 2006. Following incorporation, the entity must register with HMRC for Corporation Tax within 3 months of starting business, and for VAT if turnover exceeds the registration threshold (£90,000 as of April 2024). VJM Global manages the full incorporation and HMRC registration process.

A UK Private Limited Company (Ltd) is a separate legal entity with its own Corporation Tax liability. Profits are taxed at 25% (above £250,000) or 19% (small profits rate for profits up to £50,000), with marginal relief between. An LLP is a pass-through entity — members are taxed individually on their share of profits. LLPs suit professional services firms and joint ventures. For most foreign companies entering the UK, a Private Limited Company is the preferred structure due to its clear liability separation and compatibility with corporate group structures. VJM Global advises on entity selection based on your tax treaty position, planned activities, and long-term UK strategy.

From April 2023, the UK Corporation Tax rate is 25% for companies with profits above £250,000 (the main rate). Companies with profits of £50,000 or less pay the small profits rate of 19%. Companies with profits between £50,000 and £250,000 pay a tapered rate through marginal relief. Associated companies share the thresholds proportionally. R&D tax credits remain available for qualifying expenditure. Making Tax Digital for Corporation Tax is under HMRC consultation. VJM Global manages UK Corporation Tax compliance, including CT600 returns, R&D claims, and transfer pricing adjustments, for UK entities with cross-border structures.

Making Tax Digital (MTD) is HMRC's programme requiring digital record-keeping and submission of tax returns via MTD-compatible software. MTD for VAT has applied to all VAT-registered businesses since April 2022 — quarterly VAT returns must be submitted digitally. MTD for Income Tax Self Assessment (ITSA) will apply to sole traders and landlords with income above £50,000 from April 2026. MTD for Corporation Tax is under consultation. VJM Global uses MTD-compatible accounting software to manage VAT returns for UK entities and can transition existing clients to MTD-compliant workflows.

The India-UK Double Taxation Avoidance Agreement (DTAA, 1993, updated by 2011 Protocol) reduces withholding tax on dividends, interest, and royalties for qualifying Indian and UK residents. Dividend withholding: 15% (general) / 10% (25%+ shareholding). Interest withholding: 15% (domestic) / 10-15% (DTAA, depending on recipient). Royalty withholding: 15% under DTAA vs 20% domestic rate. Treaty benefits require residency certification and depend on income characterisation, entity type, and the specific article invoked. VJM Global advises on treaty eligibility for Indian companies with UK entities and UK companies with Indian operations. All timelines and rates are indicative subject to applicable law at the time.

A UK Private Limited Company has four main ongoing compliance obligations. First, Companies House filings: annual confirmation statement (£13 online) and annual accounts filed within 9 months of financial year end. Second, HMRC Corporation Tax: CT600 return filed within 12 months of year end; tax paid within 9 months and 1 day. Third, VAT (if registered): quarterly MTD-compliant returns filed via HMRC-approved software. Fourth, PAYE (if employing UK staff): Real Time Information (RTI) payroll submissions to HMRC on or before each pay date. VJM Global manages the full UK compliance calendar — Companies House, HMRC CT600, VAT, and PAYE — for UK entities.

Transfer pricing rules apply to transactions between connected UK and overseas entities — covering intercompany services, goods, loans, and IP licences. HMRC requires that all intercompany transactions are priced at arm's length under the OECD Guidelines. UK entities with cross-border intercompany transactions must maintain contemporaneous transfer pricing documentation. Large groups additionally require a master file and local file. VJM Global prepares transfer pricing documentation for UK-India, UK-USA, UK-Singapore, and UK-Gulf intercompany structures — coordinating UK-side HMRC compliance with India-side Form 3CEB filings where applicable.

Yes. VJM Global's India delivery team provides UK GAAP and IFRS-compliant bookkeeping, management accounts, payroll, and statutory accounts preparation for UK entities. All work is delivered using MTD-compatible accounting software. The India delivery team is ISO 27001 certified — meeting GDPR-adjacent data security standards applicable to UK client data. This model typically reduces finance overhead by 40-55% compared with in-house UK finance staff. The engagement includes a UK-qualified CA reviewing all deliverables before submission.

A UK subsidiary is a separate legal entity — a Private Limited Company incorporated at Companies House. Liability is contained within the subsidiary. A UK branch office is not a separate entity — it is an extension of the overseas parent and carries no separate legal identity. Both require registration with HMRC for Corporation Tax. Branch offices pay Corporation Tax on UK-source profits only. Subsidiaries pay Corporation Tax on worldwide profits arising from UK activities. For most foreign companies, a subsidiary is preferred due to liability separation and compatibility with UK banking, contracts, and HMRC compliance. VJM Global advises on structure selection and manages registration for both.

VJM Global operates across 75+ countries through direct offices and partner networks, covering the full compliance calendar for companies entering the UK from any market. For Indian companies, this includes FEMA documentation for outward FDI alongside UK Companies House incorporation, HMRC registration, and transfer pricing documentation under the UK-India DTAA (1993). For US, Chinese, Singaporean, and Japanese companies, VJM handles UK entity formation, HMRC registration, and coordination with home-country compliance obligations. One engagement covers both the UK and the origin market.