If you’re a non-UK resident, you might be wondering if it’s possible to set up a limited company in the UK. Setting up a limited company is a relatively straightforward process that requires filling out some forms and submitting them to Companies House. But do the rules and laws change if the person in question is a non-UK resident? Can you set up a UK company if you’re not living in the UK? Read on to find the answers to these questions, as well as some guidance to setting up a limited company.
Registering a UK Limited Company as a Non-UK Resident
So, are there any barriers or changes to the way you form a company in the UK if you are a foreign national? The answer is no.
The UK is probably the easiest and least expensive jurisdiction in the world in which to establish a limited company. The company registration process for non-UK residents is the same as for UK residents living in the UK. Foreign nationals can become the company director, shareholder, or company secretary of a UK business, and you do not even have to be a resident in the UK.
Like UK residents, however, your company will need to be registered with Companies House and have a UK address that corresponds to where the company is based. So, companies from England need an English address, and Welsh companies an address in Wales etc.
Your business needs to be incorporated into one of the UK jurisdictions but can be based anywhere and can trade throughout parts of the UK and overseas. There are several advantages to incorporating in the UK. These include:
- The fees required for incorporating a company in the UK are well below many parts of Europe
- The minimum capital requirement is just £1
- The company can be incorporated with only one shareholder
- The incorporation process can be completed electronically within 24 hours
Registering a UK Address
A crucial component of setting up a limited company in the UK is that you require a physical UK office address in the same country where your company is registered. This address will appear on the public register, and all post from Companies House and HMRC will be sent to your chosen registered address.
You can no longer use a PO Box as you registered office address, it should be noted that Companies House would likely reject any addresses which do not appear on the official Post Office lists of addresses.
While there is nothing prevent a company being registered at the home address of one of its directors, this is not recommended as a matter of privacy, as this address will be on the public record. See our service guide for more information on our Registered Office Services.
Registering with Companies House
To register your company, you will need a unique company name that is compliant with rules and regulations – see our guide for help choosing a name or check if your chosen name is available with our company search tool.
You will need to always have at least one shareholder in a company; however a company can have any number of shareholders. A Public Limited Company must have at least two directors and a company secretary who has the necessary professional qualification or experience. A Private Limited Company can have a sole directors and sole shareholder, which can be the same person.
You can then register your company with Companies House online. For a more effortless and straightforward way to register your company, you can use a formation agent to do it for you. A formation agency like Company Registrations Online will ensure that your limited company is set up in no time at all in complete compliance of all the laws and regulations, handling all the paperwork and admin for you.
Do Non-UK Residents Need a UK Bank Account?
It is not a requirement for you to have a UK bank account to trade in the UK. However, a UK business or personal bank account can help ensure that transactions are processed more smoothly without additional fees.
You do not need to live permanently in the UK to open a UK bank account, but you will need UK residency rights and UK home address (it is unlikely you will be able to use your registered UK office address for this). However, some UK banks offer international bank account services.
Is Tax Charged on Company Income Paid to Non-Residents?
If you want to take advantage of the personal allowance of tax-free income, you must be a UK citizen. If not, full tax is required of any income earned by non-UK residents, and you may be liable to pay further income tax in your resident country unless it is covered by the double-taxation agreement, such as the US, Canada, and Australia.
What Other Services Do I Need if I Live Overseas?
If you are conducting business overseas or entering contracts with non-UK customers, you may need to go through a process called Legalisation, which is the official confirmation that a signature, seal or stamp on a UK public document is genuine.
We hope this guide has helped you better understand how you can set up a limited company in the UK. If you need help and guidance with any of the process, do not hesitate to contact CRO today. We offer a range of products and company formation services designed to help people start their business. We offer comprehensive company registration packages as well as company secretarial services, so get in touch if you’d like to learn more.
