How to register a company in the UK? A complete interpretation of the new identity verification regulations in 2026

When many Chinese people in the UK reach a certain stage, they will have the same idea: start a British company. Start a side job, take on freelance work, open a small shop, or even pave the way for self-employment in the future. The good news is that the threshold for registering an Limited Company (private limited company) in the UK is very low and fast; but starting from the end of 2025, Companies House has implemented a new regulation that affects every director-identity verification. Today I will explain the process, new regulations and visa precautions in one go.

How to register a company in the UK? Process and fees

Registering a limited company online on GOV.UK costs £100. It can usually be completed within 24 hours and you will get the Certificate of Incorporation; by post it costs £124 and takes 8 to 10 working days. The core information you need to prepare includes:

📌 Company name and UK registered address; at least one director (Director); shareholders and share structure; and PSC (People with Significant Control, important controller) - usually refers to people who hold more than 25% of the shares or voting rights. Once registration is complete, you also need to register with HMRC for Corporation Tax.

2026 New Identity Verification Regulations: Directors and PSC must verify their identities

This is the biggest change in starting a company this year. Starting from , November 18, 2025, , Companies House identity verification (Identity Verification) has officially become a mandatory legal requirement and has entered a 12-month transition period. That is to say, from to November 18, 2026, at the latest, existing directors must complete the verification.

Verification method: Go through GOV.UK One Login online, or go to the Post Office to verify the document. After verification, you will get a Companies House personal code (personal code) , which is used when registering a new company or being appointed as a director.

Don’t underestimate this step: if you fail to verify on time, you will not be able to submit the Confirmation Statement (annual confirmation statement), which is a criminal violation. Continued non-compliance can result in fines of up to £5,000, disqualification as a director or even the company being struck off the register.

Can a visa holder open a company as a director in the UK?

This is the question that Chinese friends are most concerned about, and the answer needs to be looked at in layers. Registering a company and serving as a director are generally not illegal in themselves - Companies House does not restrict nationality or identity. But the real red line is: does your visa allow you to "work" in this company?

Taking Skilled Worker visa as an example, you must continue to perform duties for the sponsoring employer. Self-employment/side job can only fall within the supplementary work quota of 20 hours per week, and the position must meet the corresponding skill or salary requirements. If you want to run your own company full-time, you often have to take a more complicated path such as "self-employment sponsorship" (self-sponsorship). Study visas, spouse visas, and BN(O) have different rules, so do not apply them the same way.

⚠️ In a sentence: Whether can be a director in name and whether can actually operate and get remuneration are two different things. Before taking action, check the work restrictions of your visa and consult a licensed attorney if you are not sure.

Taxation after starting a company: corporate tax and VAT threshold

Once the company is operating, two numbers must be kept in mind. Corporation Tax (corporate tax) : 19% for profits up to £50,000, 25% for profits over £250,000, with a smooth transition by marginal relief. VAT (Value Added Tax) : Registration is required when taxable turnover reaches £90,000 over a rolling 12 months. In addition, there are regular reporting obligations such as annual accounts and confirmation statements. It is recommended to find an accountant to straighten them out from the beginning.

Will starting a company affect permanent residence?

Compliance operation itself will not hinder ILR (permanent residence), but there are two points to pay attention to: First, do not violate the working conditions of your current visa because of your business, which may directly affect your visa renewal and permanent residence; second, self-employment income must be clearly proven to be sourced and taxed legally. Continuous residence and number of days out of the country for permanent residence are the main focus. Don’t let side jobs disrupt the rhythm.