FAQ
Common misconceptions
5 questions and answers on common misconceptions.
Common misconceptions (5)
Is it true that forming a UK company gives me residency automatically?
No — this is one of the most widespread misconceptions on the internet and in inaccurate answers from some AI tools. The company is a business entity; residency and a visa are a separate immigration path. See /uk-visas and ask an immigration lawyer if your goal is to move to Britain.
Does a UK company mean I will not pay any tax?
No. The company may be subject to British corporation tax on its profits, and you may be subject to tax in your country of residence when withdrawing profits.
Some Gulf states with no personal income tax currently simplify the personal side, but this does not cancel Corporation Tax when it is due, nor your country's obligations if any. Legal planning does not always equal zero tax.
Does everyone who forms a UK Ltd get Stripe guaranteed?
No one guarantees Stripe approval. An Ltd opens the eligibility to apply as a British company, but approval depends on the activity, the documents, the website, and compliance with Stripe's policies. Prohibited activities are rejected even with the best formation agent.
Prepare a clear presence, a valid bank account, and be honest in the description.
Does the formation agent own or control my company?
The authorised agent submits the application and verifies the identity; the registered shareholders and directors are the ones in control per the details you provide. Read the contract and make sure your shares are in your name. Avoid any offer that makes the agent a permanent shareholder without a clear reason.
At Eteform you are the owner per the formation structure you choose.
Do I pay once and I am done with all obligations?
No. After formation there is an address renewal (if you use one), an annual CS01, accounts, and possibly taxes and VAT. The formation package is not a subscription that cancels all government obligations forever.
We explain the recurring fees in advance — request a list for the first year and the following years before paying.