In the twenty-first century, most companies are no longer limited by geography. This is especially true in the IT sector — corporations can choose where to register their business based not on a map, but on a calculator. Among many options, the United Kingdom and Cyprus remain two of the most popular jurisdictions for those seeking to combine legality, business comfort, and tax minimization.

1. United Kingdom: London, Big Ben, Rain, and Prestige

The United Kingdom has long established itself as a place where you can build a “solid” business. It offers serious banks, a strong jurisdictional reputation, and a clear legal system. That is why companies like Google, Meta, and Amazon have for years used London not only as their European headquarters but also as an operations center where key decisions are made.

However, prestige comes at a cost — and sometimes a significant one.

In 2023, Amazon UK paid corporation tax for the first time in several years: £18.7 million. Before that, the company benefited from government tax incentives, including a 130% tax relief on capital investments. This relief was introduced during Rishi Sunak’s premiership to stimulate the economy.

While this may sound like a large amount, compared to Amazon’s scale of operations in the UK (logistics and delivery alone cover over 20% of the domestic market), the tax burden appears relatively mild.

Meta (owner of Facebook) paid £43 million in corporation tax in 2023 on £355 million net profit — approximately 12%. Google paid £128 million on over half a billion in profit (around 25% rate). Clearly, these are not grey schemes but carefully structured legal constructions — including licensing fees, IP restructurings, and transfer pricing.

What does this mean for an IT business planning to open a LTD in London?

First, the company will need to pay 19–25% corporation tax (depending on its size), and also submit an audit or financial report annually, even if it made no profit.

Second, mandatory bookkeeping, payroll taxes, and significant legal support costs will apply.

Yet, let us not forget the advantages: a British company opens access to large markets, investor trust, a stable banking system, and a strong reputation in the B2B sector.

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