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LBGImport / Export & Trading

Company Limited by Guarantee in United Kingdom — Import / Export & Trading Formation Guide

Choose a jurisdiction with strong logistics infrastructure, favorable customs agreements, and access to major trade blocs (like the EU or US). Consider VAT deferral schemes and free trade zones.

Last verified: June 13, 2026

Corporate Tax

25.0%

State Tax

0.0%

Formation Cost

$125

Annual Fee

$63

Forming a Company Limited by Guarantee in United Kingdom as a Import / Export & Trading means a total tax burden of 25.0% and an official formation cost of $125. There is no minimum capital requirement. Standard formation takes 1-2 business days, or Same day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$263

Ongoing (per year)

$93

Detailed cost calculator →

Why Company Limited by Guarantee for Import / Export & Trading?

A business model focused on sourcing goods from one country and selling them in another. Success relies heavily on supply chain efficiency, customs compliance, and navigating international trade tariffs.

Ideal for

  • Physical product brands
  • Wholesalers and distributors
  • Dropshippers scaling to bulk inventory
  • Cross-border B2B traders

Challenges to watch

  • Complex customs and import duties
  • High shipping and logistics costs
  • Cash flow management due to inventory delays
  • Regulatory compliance across multiple jurisdictions

Key decision criteria

  • Proximity to major ports or logistics hubs
  • Availability of Free Trade Zones (FTZs)
  • VAT and sales tax registration requirements (e.g., EORI in the EU)
  • Double taxation treaties between sourcing and selling countries

Company Limited by Guarantee formation requirements

Minimum capital

None

Standard timeline

1-2 business days

Expedited timeline

Same day

Local director

Not required

Registered office

Virtual office allowed

Notarization

Not required

No local resident director is required, but the company must maintain a physical registered office address in the UK.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $1,000,000 revenue)

Gross Revenue$1,000,000
Corporate Tax-$250,000
Formation Cost-$125
Annual Fee-$63
Net Profit$749,812

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 20%. Registration threshold: 90,000 GBP. Non-UK businesses supplying digital services to UK consumers must register for VAT immediately, as there is no registration threshold for overseas sellers.

Banking & payments for Import / Export & Trading

Opening a bank account for a UK LBG is straightforward for UK residents but can be challenging for non-resident founders. Traditional high-street banks usually require an in-person branch visit. Digital alternatives like Wise or Payoneer offer remote onboarding for non-residents, while local fintechs like Tide or Starling typically require at least one UK resident director.

Supported payment gateways

StripePayPalGoCardlessSquarePaddle

Remote-friendly accounts

  • Tide

    A popular digital business banking platform in the UK, offering quick remote setup for companies with UK resident directors.

  • Starling Bank

    Award-winning digital bank with no monthly fees, but generally requires the director to be a UK resident.

  • Wise

    Excellent for multi-currency accounts and international transfers. Very friendly to non-resident directors of UK companies.

United Kingdom incentives & advantages

Gift Aid

Increases the value of eligible donations by 25% at no additional cost to the donor.

Company Limited by Guarantee formation steps

1

Choose a unique company name (must end in 'Limited' or 'Ltd', unless an exemption is granted for non-profits).

2

Define the company's objects (purpose) in the Articles of Association, which is crucial if seeking charitable status.

3

Appoint at least one director (must be 16+ years old) to manage the company's day-to-day operations.

4

Appoint at least one member (guarantor) and set the guaranteed amount (typically £1).

5

Identify People with Significant Control (PSCs) who hold more than 25% of voting rights in the organization.

6

Prepare the Memorandum and Articles of Association tailored specifically for a non-profit or guarantee company.

7

Register a physical UK office address to serve as the official registered office for government correspondence.

8

Submit the application to Companies House and pay the £50 online incorporation fee.

9

Register for Corporation Tax with HMRC within 3 months of starting any business activities.

Import / Export & Trading FAQ

Do I need a company in the country I am importing to?

Not always. You can often act as a Non-Resident Importer (NRI), but having a local entity can simplify customs, VAT registration, and local banking.

What is an EORI number and do I need one?

An Economic Operators Registration and Identification (EORI) number is required for businesses importing or exporting goods into or out of the European Union.

Should I incorporate in a Free Trade Zone (FTZ)?

FTZs offer tax exemptions and simplified customs procedures, making them ideal if you plan to re-export goods without them entering the local domestic market.

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