Onshore Company Formation in 2026 — Choosing an EU, UK or Swiss Company

Choose onshore when you need any of the following: a bank account with a mainstream European bank; access to tax treaties to reduce withholding tax on dividends, interest or royalties; customers or partners who expect an EU or UK counterparty; a base for a regulated licence, such as an EMI, investment firm or crypto-asset service provider; or a company that can show real substance where it is managed. Offshore companies still have their place — for holding structures, joint ventures and international trading — but more and more businesses use an onshore company as the operating layer and keep offshore entities for holding. See our offshore company formation guide for that side of the picture.

United Kingdom — Private Limited Company

The UK Ltd is quick to form and widely recognised. Corporation tax is 25% on profits above £250,000 and 19% on profits up to £50,000, with marginal relief in between. Since November 2025, directors and people with significant control must verify their identity with Companies House. The UK is outside the EU, so a UK company does not give EU market access, and UK banks can be cautious with non-resident owners — many founders start with an electronic money institution account.

Cyprus — Private Limited Company

Cyprus combines EU membership with a 15% corporate tax rate from 2026, an IP box regime, more than 65 double taxation treaties and an English-speaking legal and business community. It is a long-established base for investment firms, fintechs and holding companies, and foreign-owned companies can bring in non-EU staff more easily than in many EU states.

Malta — Private Limited Company

Malta's headline corporate tax rate is 35%, but its refund system returns most of the tax paid to shareholders on distribution, so the effective rate on trading profits is commonly around 5%. Malta is an EU member with an established iGaming and financial services sector, and suits groups that will also hold a Maltese licence.

The Netherlands — Besloten Vennootschap (BV)

The Dutch BV pays 19% corporate tax on profits up to €200,000 and 25.8% above that. Its participation exemption and treaty network make it a classic European holding and headquarters location, and Dutch banks and counterparties are widely trusted — but the Netherlands expects genuine substance, and running costs are higher than in most of the EU.

Switzerland — GmbH or AG

Swiss companies combine a stable legal system, strong banking and competitive taxes that vary by canton. A GmbH needs CHF 20,000 in share capital, and an AG CHF 100,000, of which at least CHF 50,000 must be paid in. Switzerland is outside the EU but is a natural base for wealth management, trading, crypto and holding companies, and pairs with Swiss SRO membership for financial intermediaries.

Latvia — SIA

Latvia taxes corporate profits only when they are distributed, so retained, reinvested profits are taxed at 0%. It is an EU member, and Riga is home to the most active Baltic financial regulator of 2026: Latvijas Banka has licensed more crypto-asset service providers and e-money institutions this year than its neighbours. A Latvian SIA is the natural company for groups planning a Latvian licence, and Latvia offers residence routes for non-EU founders.

Estonia — OÜ

Estonia also taxes profits only on distribution, and its e-Residency programme lets non-residents set up and run an Estonian company online. Note that e-Residency is a digital identity, not a residence permit, and an Estonian company managed entirely from another country may become tax resident there.

Lithuania — UAB

Lithuania's standard corporate tax rate is 16%. It has a large fintech community and remains a long-established base for e-money and payment institutions, with English widely used in the sector.

Simplified overview. Effective tax depends on your structure, where the company is managed and the shareholders' own tax residence.

An onshore company does not open a bank account by itself. European banks look at who owns and manages the company, where its clients are and whether it has real activity in the country. A company with a local director, an office or staff, and clients or suppliers connected to the country opens accounts far more easily than a company run entirely from abroad. Where a company is managed from outside its country of incorporation, it can also become tax resident where its directors sit — so plan management and tax residence together. For groups in scope of the OECD 15% global minimum tax, see our Pillar Two guide.

A common structure combines both worlds: an onshore operating company that banks, invoices and holds any licence, owned by a holding company chosen for the group's investors and future exits. See our guide to the best holding company jurisdictions.