What are the requirements for starting a company in the UK? Can I be a director based on my visa status?

Last week, a reader asked something in the background, which made me nervous: "I hold a Skilled Worker visa. I registered a company of my own last year to take on private work, and my tax returns are normal. Will this affect my permanent residence?"

This is not an isolated case. The threshold for Chinese people to open a Limited Company in the UK is astonishingly low - it can be registered in just ten minutes with a mobile phone. But registration is easy, but that doesn’t mean you are “qualified” to operate. It’s worth clarifying again that Companies House’s fees and identity verification rules have been tightened simultaneously since February this year.

How much will the cost of starting a company in the UK rise in 2026?

From February 1, 2026, Companies House has implemented a round of price adjustments: online company registration for has increased from £50 to £100, paper applications have increased from £124, and same-day expedited applications have increased from £78 to £156. Annual Confirmation Statements jump from £34 to £50 online and £110 on paper.

Behind the price increase is the implementation cost of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This bill gives Companies House real powers of censorship - it is no longer a post box of "what you put in it".

📌 Starting from November 18, 2025, directors and PSC (Substantial Controller) must complete identity verification (Identity Verification). Old companies have a 12-month transition period, which will be confirmed when the next confirmation statement is submitted. Free verification via GOV.UK One Login.

Can I be a director with my visa status? Clearly distinguish the three situations

This is the part that is most likely to go wrong. Companies Act doesn’t care about your immigration status, and Companies House won’t stop you – but the Home Office will settle the score.

student visa: the most strict. Appendix Students are expressly prohibited from self-employing or engaging in business activities. You can be a nominal shareholder under very limited circumstances, but once you sign contracts, issue invoices, and actually operate as a director, you will violate the visa conditions. The consequences go beyond visa revocation and may trigger a re-entry ban of up to 10 years.

Skilled Worker: divided into "holding shares" and "working". simply holds shares and does not participate in operations, which generally does not constitute a violation. But as long as you actually work for this company, you must be sponsored by an entity holding a sponsor license (including Self-Sponsorship). The so-called "20 hours of supplementary work per week" cannot be used for self-employment - the supplementary work must be of an employed nature and must meet the same skills and salary conditions.

permanent residence (ILR) or BNO: the most free. ILR holders have no work restrictions and can open a company, be self-employed, or be a director. BNO(LOTR) also allows for self-employment and entrepreneurship, which is one of the underrated advantages of this route.

What materials are needed to register a Limited Company?

There are actually only six statutory requirements: company name (not too similar to a registered name), registered office address in England/Wales/Scotland (it will be publicly available, don’t just fill in your own home), at least 1 director over 16 years old, at least 1 shareholder, SIC business category code, and articles of association (Memorandum & Articles of Association, standard template available).

Also designate a PSC – usually the person who holds more than 25% of the shares or has actual control. Many people find friends to be alias directors in order to "look clean". This risk has increased sharply after ECCTA: identity verification will reveal the real controller, and concealing the PSC itself is a criminal offence.

Annual obligations and tax lines after the company is opened

Registration is only the first day. Fixed actions every year thereafter: Submit annual accounts and confirmation statement to Companies House, submit Company Tax Return (CT600) to HMRC and pay Corporation Tax - 19% small profits rate applies to profits below £50,000, and 25% for profits above £50,000. For VAT, registration is required if the taxable turnover exceeds the current threshold of £90,000 (please refer to the latest announcement of GOV.UK for this figure).

There is still a time to keep an eye on: from April 2026, company accounts must be submitted in iXBRL format through certified software, and Companies House’s original WebFiling accounts channel has been closed. Small companies that are used to filling out forms by hand should change tools in advance.

If you’re stuck on Self-Sponsorship’s CoS spot – Home Office places are released every weekday at 7am UK time and are available in a matter of seconds. justiscript.com has a £99 CoS seat grabbing service. It will be automatically submitted as soon as the number is allocated and you will receive instant email notification.

Will opening a company affect my UK permanent residence application?

Compliance operations themselves will not. The real killing points are "violation of visa conditions" and "inconsistency in tax declarations" . The permanent residence application falls under the Suitability review category, and the Ministry of Home Affairs can retrieve HMRC records; if the income you declare when applying for a visa does not match the tax filing figures, or if you actually operate a company under a restricted status, it may be deemed dishonest, which will directly affect ILR or even naturalization.

There is another thing that is easy to overlook: frequent business trips for company business will eat up your consecutive days of residence. The 5-year permanent residence route generally requires no more than 180 days of absence outside the country in any rolling 12-month period. If you want to be precise, you can use 永居计算器 APP to fill in the records of each entry and exit. If you are not sure whether your identity can open a company, spend £5 on justiscript.com and get a written reply from a licensed lawyer in the UK within 24 hours. It is more reliable than guessing on the forum yourself.

📎 This article is for reference only. Please consult a licensed attorney for specific questions.

💬 Chat in the comment area: What is your current visa status? Have you ever considered registering a company in the UK? At what step are you stuck - is it identity restrictions, registration process, or is it unclear whether it will affect permanent residence?

If you find it useful, collect this article , and check it out when setting up a company or renewing a visa.

[Data source] gov.uk/government/news/companies-house-confirms-identity-verification-rollout-from-18-november-2025; gov.uk/government/publications/rates-and-allowances-corporation-tax; gov.uk/limited-company-formation

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