Setting Up a Property Investment Company in the UK: A 2025 Guide for Landlords

The property investment landscape in the UK is rapidly evolving, and one of the most significant trends shaping the market is the rise in landlords purchasing Buy-to-Let properties through limited companies. 

According to recent research, 69% of landlords plan to invest via limited companies in the coming year driven by changes in tax relief, inheritance planning, and the desire for long-term scalability. 

But is this the right move for you? 

Below, we explore the benefits, key steps, and practical considerations of forming a property investment company in the UK along with how professional guidance can make the process smoother. 

Why More Landlords Are Choosing Limited Companies 

Forming a limited company to hold property offers several strategic advantages: 

• Tax Efficiency 

Unlike personal income tax rates, limited companies pay corporation tax on profits currently lower than higher-rate income tax bands. This allows landlords to retain more income or reinvest it back into property. 

• Flexible Profit Distribution 

You can pay yourself through a mix of salary and dividends, offering greater control over personal tax liabilities. 

• Inheritance Planning 

A company structure offers more flexible options for passing on property assets ideal for those looking at legacy planning. However, it’s not all upside. Limited companies come with: 

• Setup and annual filing costs 

• More complex accounting needs 

• Potential Stamp Duty and Capital Gains Tax if transferring existing properties 

That’s why speaking to a tax advisor or accountant is essential before taking the leap. 

Steps to Set Up a Property Investment Company 

If you're confident that this route aligns with your investment strategy, here’s a simplified overview of the steps involved: 

1. Appoint Directors 

Every company needs at least one director over the age of 16. This person is legally responsible for managing the business. 

2. Choose Shareholders 

Decide who will own the shares. This may include family members for inheritance planning. You must have at least one shareholder. 

3. Decide on a Share Structure 

Will you issue ordinary shares or create more complex structures such as alphabet or freezer shares for different rights and planning purposes? 

4. Set the Company Rules 

These are the Articles of Association. You can choose a standard template or create bespoke rules if you’re setting up with business partners or planning for succession. 

5. Pick a Company Name 

Make it unique, memorable, and property-focused. Check name availability with Companies House and the Intellectual Property Office to avoid conflicts. 

6. Register Your Company 

Register online via Companies House or use a formation service. You’ll receive your certificate of incorporation and a Unique Taxpayer Reference (UTR) number. 

7. Open a Business Bank Account 

This is a legal requirement and essential for separating personal and business finances. 

8. Register for Tax 

Once trading begins, you must register for corporation tax and potentially VAT depending on your activities. 

Is It Right for You? 

While a limited company structure offers appealing benefits, it isn’t suitable for every investor. Factors like your current income, number of properties, growth goals, and exit strategy should influence your decision. 

That’s why it’s vital to seek tailored professional advice ideally before your first purchase to avoid costly restructuring down the line. 

Final Thoughts 

Forming a limited company to invest in UK property is no longer just a trend it’s becoming the preferred route for strategic investors seeking tax efficiency and long-term planning advantages. 

At DG Property Management, we support landlords at every stage of their journey from setting up investment companies to managing growing portfolios. Whether you're considering your first Buy-to-Let or scaling up your holdings, our team can guide you through the legal, financial, and operational steps needed for success. 

Contact us today for a free consultation and discover how we can help you build a smarter, more resilient property portfolio.