Introduction
The United Kingdom has long been a preferred destination for global entrepreneurs. With Brexit introducing regulatory shifts, many non-residents have asked: Is the UK still a good place to start a company? The short answer is: yes.
This article provides a comprehensive, legally compliant, and data-backed analysis of how Brexit has influenced UK company formation for non-residents—and why the UK remains one of the most trusted, tax-efficient, and globally connected business environments.
Key Changes in UK Company Formation Post-Brexit
1. Loss of EU Establishment Rights
| Pre-Brexit (EU Membership) | Post-Brexit (2021 onwards) |
|---|---|
| EU citizens had automatic rights to establish businesses under EU law | EU citizens treated like any other non-resident |
| Cross-border services without additional paperwork | Import/export declarations now required |
| Mutual VAT recognition | Separate VAT registration and compliance required |
2. UK Company Formation Trends Remain Positive
| Year | Total New Companies | Non-Resident Directors Involved | % Involving Non-Residents |
|---|---|---|---|
| 2018 | 672,890 | 79,480 | 11.8% |
| 2020 | 758,370 | 92,360 | 12.2% |
| 2022 | 805,810 | 96,400 | 12.0% |
| 2023 | 830,494 | 102,750 | 12.3% |
| 2024* | 854,100 (est.) | 108,000 (est.) | 12.6% (est.) |
3. Corporate Tax: UK vs Other Business Hubs
| Country | Corporate Tax Rate (2025) |
|---|---|
| United Kingdom | 19% (profits ≤ £50k), 25% (> £250k) |
| Ireland | 12.5% |
| Germany | 29.9% |
| France | 25% |
| United States | 21% |
| UAE (mainland) | 9% |
| Singapore | 17% |
4. Ease of Doing Business Rankings (lower rank = better!)
| Indicator | UK | Germany | France | USA |
|---|---|---|---|---|
| Starting a Business | 18 | 125 | 37 | 55 |
| Protecting Minority Investors | 7 | 57 | 45 | 36 |
| Paying Taxes | 27 | 46 | 61 | 25 |
5. Top Industries for Non-Resident Companies
| Sector | % of Non-Resident Formations (2023) |
|---|---|
| eCommerce & Dropshipping | 28% |
| Consulting & Advisory | 21% |
| IT & Software Development | 14% |
| Real Estate Investment | 11% |
| Financial Services | 9% |
| Import/Export & Logistics | 7% |
| Education & Training | 5% |
| Other | 5% |
Verified UK Tax and Legal Information
| Tax | Rate / Threshold (2025) |
|---|---|
| Standard VAT | 20% |
| Reduced VAT | 5% |
| VAT registration threshold | £90,000 turnover |
| Corporation Tax (≤ £50,000) | 19% |
| Corporation Tax (> £250,000) | 25% |
| Marginal Relief | Applicable between £50k and £250k |
📊 Why the UK Still Stands Out for Non-Resident Founders
Despite Brexit, the UK’s tax framework remains globally competitive:
- Simple, well-established tax structure: No sudden hikes; corporation tax capped at 25% through this parliament.
- VAT rules fully sovereign since the UK left the EU, but set at moderate levels comparable with peers (standard 20%, reduced 5%).
- High VAT threshold (most EU countries threshold lower), giving SMEs breathing room before mandatory registration.
FAQs: UK Company Formation After Brexit
- Passport or ID
- Proof of residential address
- Company name and business activity
- Registered office and service address in the UK (provided by CG Incorporations if needed)
Conclusion
Despite Brexit, the UK remains a world-class business destination. Competitive tax rates, legal transparency, and a robust framework make it an excellent jurisdiction for non-residents seeking to expand internationally.
Why the UK Remains a Top Choice for Non-Resident Entrepreneurs
Despite the procedural changes caused by Brexit, the UK remains a strategic and stable jurisdiction for international business. Here's why:
- ✅ Full foreign ownership allowed
- ✅ No UK residency required
- ✅ English legal system with global recognition
- ✅ Strong IP protection
- ✅ Efficient online registration in 1–2 business days
- ✅ Trusted reputation with banks, customers, and suppliers globally
📈 Learn more about our complete non-resident formation package.
Get Started Today with CG Incorporations
At CG Incorporations, we simplify the process of UK company formation for non-UK residents with:
- ✅ 24–48 Hour Company Registration
- ✅ UK Registered Office & Service Address
- ✅ Apostille & Document Legalisation
- ✅ VAT & Tax Registration
- ✅ Accounting & Annual Compliance
- ✅ Bank Account Assistance
👉 Explore our service: Form your UK company now with CG Incorporations
References
Published: 7/26/2025 2:48:03 PM. Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice.
For formal advice regarding UK company registration please…
