UK company formation from Germany: what to settle first

Forming a company in the United Kingdom from Germany is very achievable — but the UK filing is only one side of the structure. This guide covers both: the UK decisions, and what specifically changes because you are resident in Germany.

Can a founder in Germany form a company in the United Kingdom?

Short answer: yes — a German resident can own 100% of a UK Ltd, remotely. Complete the UK identity verification and registered office; on the German side remember Bundesbank AWV reporting and the §138 AO notification.

At a glance

Why founders from Germany choose UK

German founders use a UK company for English-language contracting, UK market access and a familiar, fast incorporation — useful post-Brexit for a UK footprint.

Which company structure should you choose?

• Private limited company (Ltd) — the default: limited liability, shares, simple to run and well understood by banks and customers.
• LLP — a limited liability partnership, sometimes used by professional firms; profits are taxed on the members rather than the entity.

Foreign ownership, director and address requirements

There is no UK residency requirement for directors or shareholders, so a non-resident can own 100%. You do need a UK registered office (a real address, not a PO box), an appropriate email address, SIC activity codes and details of any Persons with Significant Control. Under the Economic Crime and Corporate Transparency Act, every director and PSC must now verify their identity — non-residents usually do this through an Authorised Corporate Service Provider (a formation agent) via a biometric passport check.

What changes because you are resident in Germany

Being resident in Germany adds a home-country layer on top of the UK rules: how the capital leaves Germany, and what you must report there once you own the foreign company. It doesn't stop you — it just needs planning alongside the UK steps below.

Germany’s outbound-investment and reporting rules

Germany, within the EU, has free movement of capital, so a German resident can invest abroad freely. Two things matter: Bundesbank statistical reporting and German tax on the foreign holding.

• Cross-border payments and foreign holdings are reported to the Bundesbank under the AWV (Außenwirtschaftsverordnung).
• You must notify your tax office of a foreign participation under §138 AO.
• CFC rules (Hinzurechnungsbesteuerung) can tax low-taxed passive foreign income.

Documents you will need

• A valid passport for identity verification of each director and PSC
• Residential and service addresses for each director/PSC
• A company name ending in ‘Limited’ or ‘Ltd’ and SIC activity codes
• Share structure (often one £1 ordinary share to start)
• A UK registered office address and a registered email address

Step-by-step formation process

1. Choose Ltd or LLP and a name. Check availability at Companies House and pick SIC codes.
2. Verify identity. Directors and PSCs verify via GOV.UK One Login or an Authorised Corporate Service Provider.
3. Prepare details. Set the registered office, directors, shareholders/PSCs and share structure.
4. File the IN01. The application is filed with Companies House; approval is usually 24–48 hours.
5. Register for tax. Register for Corporation Tax; your UTR arrives by post at the registered office in 7–14 days.

How to send the initial capital

Transfer funds freely, but remember the AWV reporting for cross-border payments above the threshold and document the capital contribution or loan.

Opening a bank account

A UK company can be formed remotely, but banking is separate. High-street banks often prefer a UK-resident director or an in-person meeting; fintechs such as Wise Business, Revolut Business and Tide onboard non-residents more readily. Expect identity checks, proof of the registered office and a clear description of the business. Approval is not guaranteed.

Taxation in UK

Corporation Tax is 25% (a 19% small-profits rate applies below £50,000, with marginal relief up to £250,000). VAT registration is required once taxable turnover exceeds £90,000, and PAYE applies if you employ staff. The UK does not tax non-resident shareholders on the company’s profits directly, but dividends may be taxable where the shareholder lives.

Tax and reporting back in Germany

Separately from UK tax, Germany taxes you as a resident and expects the home-country reporting set out above (see “Germany’s outbound-investment and reporting rules”). The practical point is that owning the foreign company is not tax-neutral at home: build both sides into your annual filing calendar rather than treating the UK return as the whole picture.

Cross-border tax considerations

The UK–Germany treaty and foreign tax credits relieve most double tax; German CFC rules can tax low-taxed passive UK income. Confirm where the company is actually managed to avoid a German tax-residence surprise.

Annual compliance in UK

• Annual accounts filed with Companies House.
• Company Tax Return (CT600) filed with HMRC and any Corporation Tax paid.
• Confirmation statement at least once a year.
• Maintain the PSC register and keep identity verification current.

Ongoing obligations in Germany

Keep your Germany position current: refresh any foreign-asset or foreign-affiliate disclosures each year, report further investment or repatriation, and keep records tying your shareholding back to the funds that paid for it.

Cost

Look at four separate costs, not one headline number:

• Government cost. The Companies House digital incorporation fee is £50–100, plus your registered-office and identity-verification service (formation-agent packages commonly run £100–300).
• Required third-party cost. Any mandatory local role — registered agent/office, company secretary, resident/nominee director or free-zone desk, depending on the country.
• StartEase professional fee. Quoted separately and clearly, so you see exactly what you pay us versus the government.
• Annual recurring cost. Renewals, accounting, tax filings and any local-role fees — ask “what will this company cost me to keep alive after year one?”

Timeline

Treat each regulator and the bank as a separate track — never bundle them into one “ready in X days” promise:

• Company incorporation: Usually 24–48 hours once identity checks are done
• UTR (tax reference): Posted to the registered office within about 7–14 days
• Bank account: A separate process — see below

Visa and immigration

Registering a UK company does not grant a visa or the right to live or work in the UK. Immigration routes such as the Innovator Founder visa are separate and have their own eligibility, endorsement and investment requirements.

Common mistakes to avoid

• On the Germany side: forgetting the Bundesbank AWV reporting and the §138 AO notification of the foreign holding.
• On the UK side: missing the annual confirmation statement, or not completing the new identity-verification step.
• Assuming ownership grants a visa or residency — it does not.
• Promising clients a live bank account on day one — onboarding is separate and can be declined.
• Choosing a heavier structure for prestige when a simpler one would cost far less to run.

Who this suits — and who it does not

It suits you if you have a genuine UK reason — customers, currency, market access or investors there. It may not suit you if your customers and operations are entirely in Germany with no real UK nexus, in which case the extra filings and cross-border reporting add cost without a clear benefit.

How StartEase can help

We handle the UK formation end to end — structure and registration, the local roles you need, tax registration and your ongoing filings — and we coordinate with your Germany adviser so the funding route and home reporting line up. Talk to StartEase about your UK company.

Sources reviewed

• GOV.UK: Set up a limited company
• Companies House: Verifying your identity
• HMRC: Corporation Tax

Last reviewed: June 2026.

Important: This is general educational information, not legal, tax, accounting or immigration advice. Rules, rates, fees and thresholds change and depend on your circumstances — confirm the current position with a qualified professional before you act.