Registering a company in the United Kingdom is a popular choice that more and more entrepreneurs are making. No wonder - in every ranking of the countries where it is easiest to start a business, the United Kingdom is consistently rated the best place in Europe, and fifth in the world rankings. Find out how to start a business in the UK today!

Summary & key takeaways

  • You can run a UK business as a sole trader or a limited (LTD) company.
  • A sole trader files Self Assessment and is liable with their personal assets.
  • An LTD company is a separate entity — the director's personal assets are protected.
  • A sole trader needs an NI number and Self Assessment registration with HMRC.
  • Registering an LTD requires Companies House, a director and a shareholder.

Two routes

The United Kingdom offers international entrepreneurs many different options when it comes to running a business. If we decide to run a business on our own, we have two options. We can register as a sole trader, i.e. a self-employed person, or set up a limited company, the equivalent of a Polish sp. z o.o.

Working as a sole trader, we are both the owner and the employee of the business. We can employ more people, but the main distinguishing feature of a sole trader is that they are responsible for paying their own taxes, which is why they must commit to regularly filing a Self Assessment, i.e. a tax return. While all accounting matters are simple in this format, you should bear in mind that you have to keep all your own records of income and expenses, and that you are liable with your personal assets for the consequences of your business activities.

Setting up a limited company (also known as an Ltd company), we must appoint a company director and register it with Companies House. While there are more formalities and administrative work involved than with self-employment, a limited company is treated as a separate entity. Running such a company on our own, we are treated as both its director and employee, but if the company goes under, we are not liable for it with our personal assets.

Different requirements

To start trading as a sole trader, we must meet the following conditions:

  • Have a National Insurance number

  • Register for Self Assessment on the HM Revenue and Customs website

  • Trade under your own name or a business name

To register a limited company, you need to:

  • Choose a company name and address

  • Register with Companies House

  • Appoint a director and a shareholder (at least one of each; it can be the same person)

  • Draw up the Articles of Association - the rules the company’s operations will be based on

  • Register to pay Corporation Tax

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Accounting for Polish businesses in the UK

A team of Polish accountants and tax advisors with years of experience supporting businesses operating in the United Kingdom.

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