How to Start an Online Business in the UK (2025 Guide)

Set up your UK business remotely with a virtual office in the heart of London – professional, legal, and hassle-free

Why Set Up a Company in the UK?

Starting a company in the UK is one of the fastest and most affordable ways to operate a legitimate online business — even if you live outside the UK. Whether you're planning to sell on Amazon, Etsy, eBay, or use Stripe, Payoneer, or Wise, a UK Limited Company (LTD) is fully accepted and trusted globally.

What Type of Business Should You Register?

The Best Option: Private Limited Company (LTD)

Most online entrepreneurs choose to register a Private Limited Company (LTD) because it:

--Offers legal protection

--Is accepted by global marketplaces and payment providers

--Requires minimal setup and maintenance

--Can be owned 100% by a non-UK resident

Step-by-Step: How to Register a UK Company Online

Step 1: Choose a Unique Company Name

Use the official Companies House name checker:

🔗 https://find-and-update.company-information.service.gov.uk

Make sure your business name:

Is not already taken

Does not include restricted words

Ends with “Ltd” or “Limited”

Step 2: Get a UK Business Address (Virtual Office)

You must provide a UK address for your company.

Step 3: Register with Companies House

You have two options:

✅ Option A: Do It Yourself

Go to https://www.gov.uk/set-up-limited-company

Fill in the online form

Pay a one-time fee of £12

Company setup takes 1–2 working days

✅ Option B: Use a Company Formation Service

These services offer address + registration together

What Documents and Information Are Required?

--Full name and nationality of the company director

--Registered UK company address

--Business activity (SIC code selection)

--Shareholder details (can be the same as director)

--Valid ID (passport or national ID)

--You don’t need to be a UK citizen or live in the UK.

Step 4: Register for Taxes with HMRC

--Once your company is formed, you must register for Corporation Tax within 3 months.

--VAT registration is optional unless your UK revenue exceeds £90,000/year.

--Most formation services handle this for you automatically.

Step 5: Open a UK Business Bank Account

If you're not a UK resident, use digital banking services like:

--Wise Business

--Payoneer Business

These services provide you with a UK IBAN and account number, which is perfect for:

--Amazon payouts

--Stripe/Shopify connections

--Freelancer payments

Can You Run the Business from Outside the UK?

Yes, 100%. You can:

Register and manage the company fully online

Operate from anywhere in the world

Use your UK company to sell globally on Amazon, Etsy, eBay, etc.

Item	Estimated Cost
Company registration	£12 (DIY)
UK virtual address	£120–£200/year
Business bank account	Free (Wise)
Total	£132–£212

Final Thoughts

Setting up an online business in the UK is quick, easy, and globally accepted. With just a few steps, you can have a legitimate UK Limited Company ready to sell on Amazon, open Stripe accounts, and receive payments from anywhere in the world.