UK Ltd Company Formation from Pakistan: Step-by-Step Stripe UK Setup
By Shaheer Khan, founder of Markify Ecommerce
For many Pakistani sellers, a UK private limited company is the fastest route to a Stripe account, PayPal business payouts and a professional base for selling on Amazon UK, eBay UK, Etsy and TikTok Shop UK. You do not need to live in the UK or hold a UK visa to own or direct one.
This guide walks through the whole process in the order we do it for clients: forming the company, verifying your identity, opening a business account and getting Stripe UK approved, plus the yearly costs people forget.
UK Ltd or US LLC: which do you need?
Choose a UK Ltd if most of your customers are in the UK or Europe, you want GBP and EUR accounts, or you sell mainly on Amazon UK, eBay UK or TikTok Shop UK.
Choose a US LLC if you sell mainly on Amazon US, Walmart, TikTok Shop US or to American customers. Our US LLC vs UK Ltd comparison goes into more detail.
Step 1: Choose the company name and structure
Your company name must be unique on the Companies House register and end in "Limited" or "Ltd". Avoid sensitive words such as "Bank" or "Royal" unless you have permission.
Most sellers set up a company limited by shares with one director and one shareholder: themselves. You will also need:
- SIC codes that describe what the company does, for example 47910 for retail sale via mail order houses or the internet.
- A registered office address in the UK. This is public and receives official post from Companies House and HMRC. A formation agent or virtual office provides one.
- A service address for each director. This is also public, so most non-resident directors use the agent's address rather than their home address.
- The people with significant control (PSC), usually anyone with more than 25% of shares or votes.
Step 2: Verify your identity with Companies House
Directors and people with significant control now have to verify their identity with Companies House. You can do this online through GOV.UK One Login with your passport, or through an authorised corporate service provider. Once verified, you receive a personal code that is used when the company is formed or when you are appointed.
For sellers in Pakistan, the online route with a valid passport usually works; if it does not, an authorised agent can verify you instead. Allow time for this step before you plan your launch date.
Step 3: Incorporate the company
The incorporation is filed online with Companies House. The government fee for online incorporation is £100 at the time of writing. When everything is in order, companies are usually registered within one to a few working days, and you receive:
- Certificate of incorporation with your company number
- Memorandum and articles of association
- Share certificates and the statutory registers
Step 4: Register for Corporation Tax
A new company must register for Corporation Tax with HMRC within three months of starting to trade. HMRC sends a Unique Taxpayer Reference (UTR) to the registered office. Keep this safe; your accountant will need it.
Step 5: Open a business account
High-street UK banks usually want directors who live in the UK. Non-resident directors normally use online business accounts. Wise Business, Payoneer and Airwallex accept many owners based in Pakistan, subject to their own checks, and give you UK sort code and account details. Apply with:
- Certificate of incorporation and company number
- Your passport and proof of your home address in Pakistan
- A clear description of what the company sells, with your website
Use exactly the same company name and address you registered with Companies House.
Step 6: Get Stripe UK approved
Stripe UK will ask for the company number, registered address, the director's and owners' identity, a UK bank account in the company's name and your website. Before you apply:
- Finish the website. Real products and prices, refund and returns policy, shipping information, privacy policy, terms and a contact page with an email and the company's address.
- Match every detail. The legal name in the website footer, on the bank account and on Stripe must be identical to Companies House.
- Be honest about where you live. Give your real residential address in Pakistan as the director's address. Stripe allows non-resident directors; inconsistent information is what causes closures.
- Check your product. Some categories are restricted or prohibited by Stripe whatever country the company is in.
If Stripe asks for more information, reply promptly with exactly what is requested. Our guide to fixing Stripe verification from Pakistan covers the common problems.
Step 7: Open your marketplace accounts
With the company, bank and Stripe in place, you can register on Amazon UK, eBay UK, Etsy or TikTok Shop UK in the company's name. Marketplaces compare your details with the public Companies House record and your bank statement, so keep them identical.
The yearly costs and filings
A UK Ltd has ongoing duties. Plan for them from day one:
| What | When | Typical cost |
|---|---|---|
| Confirmation statement | Once a year | £50 Companies House fee |
| Annual accounts | Within 9 months of the year end (first accounts have a longer deadline) | Accountant's fee |
| Corporation Tax return (CT600) | Within 12 months of the accounting period end | Accountant's fee |
| Registered office renewal | Yearly | Agent's fee |
| VAT returns | Quarterly, once registered | Accountant's fee |
VAT. A UK business must register for VAT when its UK taxable turnover goes over £90,000 in a rolling 12 months, and can register voluntarily before that. Rules for marketplace sales and for businesses managed from outside the UK can be more complex, for example when you hold stock in UK warehouses. Ask an accountant to look at your situation before you start trading.
Pakistan tax. Income you take out of the company may also be taxable in Pakistan. Speak to a tax adviser in Pakistan.
Common mistakes
- Leaving the director's home address in Pakistan on the public register when a service address could have been used.
- Applying to Stripe with an unfinished website.
- Missing the first confirmation statement or accounts deadline. Late accounts bring automatic penalties.
- Treating the company bank account as a personal account. Keep business and personal money separate.
Frequently asked questions
How long does it take to form a UK company from Pakistan?
Identity verification plus incorporation usually takes a few working days. Bank and Stripe approval can take another one to three weeks.
Does a UK company give me a UK visa?
No. Being a director or shareholder of a UK company does not give any right to live or work in the UK.
Can I run the company entirely from Pakistan?
Yes, the company can be managed remotely. Be aware that where a company is managed can affect its tax position, so ask an accountant.
Can I use 1st Formations or another formation agent and still get Stripe?
Yes. Formation agents such as 1st Formations file the same incorporation with Companies House that you could file yourself, often bundled with a registered office address and other extras. Stripe does not care which agent formed the company. What matters for Stripe approval is that the company details, director identity, address, website and business description are accurate and consistent. Compare what each package includes, especially the registered office and service address, before you buy.
Do I need a UK phone number?
Not legally, but a UK number can help with some bank and marketplace verifications.
This guide is general information, not legal or tax advice. If you would like us to handle it, our UK Ltd formation packages start at £120.
Work with Markify Ecommerce
Markify Ecommerce (listed on Google Maps as Markify Ecommerce - Unicored Technologies) is an ecommerce marketplace management agency in Bahria Orchard, Lahore. We manage Amazon, eBay, Walmart, Shopify, Etsy and TikTok Shop accounts, and we set up US LLCs and UK Ltd companies for Pakistani sellers.
- Office: Central Block, Bahria Orchard, Raiwind Road, Lahore 55150, Punjab, Pakistan
- Phone & WhatsApp: +92 321 3131641
- Free account audit: Send us your store or account details and we will reply with the first fixes we would make.
