The strong economic relationship between India and the UK was further strengthened by the signing of the Comprehensive Economic and Trade Agreement (CETA) in July 2025, which entered into force in July 2026, making it even easier for Indian entrepreneurs to establish a UK limited company.

The UK has a reputation for a robust business ecosystem, strong capital markets, and a large start-up ecosystem, making it an attractive destination for Indian entrepreneurs. While this is possible, setting up a UK limited company as a non-resident requires you to meet several legal requirements.

If you already own a company in India and want to expand it to the UK market, you will have to start a company and register it with Companies House. The first step is to always know which company structure is best for your business.

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This guide will outline the step-by-step process for business owners to set up a limited company in the UK from India.

Business structures to choose from in the UK

Sole trader

This is a business structure that is owned and operated by one person. They are known as self-employed individuals, and this structure is easier and faster to set up. This business structure does not require formal registration with Companies House, meaning it is not a separate entity from the company owner.

However, if your business earned more than £1,000 in a fiscal year, you will be required to register with the HMRC (Her Majesty’s Revenue & Customs) for self-assessment.

To run a sole trader business structure in the UK to declare their UK self-employed income and pay any applicable UK tax on it, while in India, you must register with HMRC and meet UK business requirements, such as having a UK business address.

Limited company

Limited companies are the most popular structures (especially private limited companies) that foreigners choose to incorporate in the UK. This structure must be registered with Companies House, unlike the sole trader.

Limited companies come with several benefits, such a limited liability protection, which means business owners and directors’ personal assets are not at risk of the company’s liability.

Unlike a sole trader, a limited company requires several legal procedures to be set up. Though it is a simple process that can be completed online, even while in India.

In terms of prices, a sole trader is more affordable than a limited company since it includes registration fees; however, it protects you as a business owner and a company director.

Limited Liability Partnership (LLP)

Indian entrepreneurs can also set up an LLP, which has the features of a limited and a partnership company. For this company structure, you will need to appoint at least two members, have a UK-registered office address, and register with Companies House.

For this structure, all partners have the responsibility of filing their own self-assessment on their profit with HMRC. The company profits are allocated to individual partners, who then pay on their own shares of their profits through their personal tax return.

Step-by-step process to start a UK limited company from India

Choose a company name

Every company needs an identity, and a name gives it just that. Every jurisdiction has regulations when it comes to choosing a company name for your business, and the UK is no different. The Companies Act has laid out the restrictions on choosing a name for your company. Some of the restrictions include;

It should be unique. Not similar to or the same as existing company names in the register
Should have ‘Ltd’ or ‘Limited’ at the end of the company name. If incorporated in Wales, it should end with ‘Cyfyngedig’ and ‘Cyf’.
Should not include sensitive words (that suggest a connection with government, royal entities, or suggest special status).

You can check more company name restrictions on the Companies House website. Additionally, you can also use the Companies House company name availability checker to ensure that the name you choose for your company is available and unique.

Registered office address

To incorporate a company in the UK, you must have a UK-registered office address that is in the same jurisdiction as where the company is registered. As an Indian business owner, you can use a virtual office service to incorporate a company in the UK; however, it must be an ‘appropriate address’ as laid down in the Companies Act 2006.

An ‘appropriate address’ must be:

Physically located in the UK
Not be a PO Box
Be accessible to receive formal communications and legal notices
Someone on behalf of the company must acknowledge the correspondence
Be in the same jurisdiction as where the company is registered
The address is a public record, and it should be listed on the public register

Appoint directors and shareholders

A private limited company needs at least one company director who can also be the business owner. The director can also be the shareholder.

To be a company director and shareholder, you must be at least 16 years of age and not necessarily a UK resident.

Directors have legal responsibilities which include: keeping company records, preparing annual accounts, filing statutory records with Companies House, filing Corporate Tax Return, and acting in the company’s best interest, among others.

Shareholders own the company and do not have to be the company director; however, they must meet certain legal and contractual requirements to become a shareholder and be entered onto the company’s register of members.

Prepare the necessary documents

There are several documents you must prepare when incorporating a limited company in the UK. They include;

Memorandum of Association: This is a legal document that is signed by shareholders and guarantors to agree to form the company.

Articles of Association: This document contains powers, responsibilities, and rules for running, governing, and owning a company.

Register with Companies House

A limited company can easily be registered online, directly with Companies House, or use a company formation agent to do it on your behalf. The process is the same when using both; however, agents will only require your business information, and they will do the rest, that is, fill in the forms, submit it, maintain, and answer all Companies House communications/ queries on your behalf.

To register with Companies House directly, you will need to:

Visit their website
Answer the provided questions
Provide the business and personal information
Provide business address and Standard Industrial Code (SIC)
Submit required documents
Wait for Companies House approval

It is seamless and easier to use company formation agents, as they also offer a registered office address and ease the registration process for you.

Open a bank account

You will need a UK business account to handle your business’s transactions. This will ensure you separate your personal and business finances.

Many company formation providers partner with leading financial institutions to offer exclusive benefits or streamlined account opening processes. Depending on the bank, eligible customers may receive cashback of up to £50 when opening a business bank account. Comparing both UK and international banking options can help you choose the best fit for your business.

Register for taxes

If you incorporate your company directly with Companies House, you will have to register for Corporate tax with HMRC within three months of starting trading activities. However, if you choose to use company formation agents for company incorporation, they will directly register your company with HMRC for Corporate Tax.

To conclude, Indian business owners can easily set up a limited company in the UK and tap into the market. The process is straightforward if you understand all the legal requirements needed to set up a company.

Working with a company formation agent can make the process significantly easier, as they provide guidance through each stage of setting up a UK business. Many providers also offer additional services such as virtual office addresses, mail handling, and assistance with opening a business bank account. For example, Icon Offices offers company formation, virtual office, and banking support, with some virtual office packages including free UK company incorporation, a registered business address, and help with setting up a business bank account, helping entrepreneurs reduce their initial setup costs. Those interested in learning more can contact Icon Offices directly at info@iconoffices.co.uk.