Is it easy for a non-resident to start a UK company?

The UK is one of the easiest, quickest, and most affordable countries to start a company. Applications are brief and typically take just a few hours to process. And the great news is that starting a company here is just as easy for non-residents.

So, the short answer to the question ‘Is it easy for a non-resident to start a UK company?’ is yes. If you’re based abroad and are considering starting a UK company, we answer some of the most common questions about the procedure and running a UK business from abroad below.

Can I set up a UK company as a non-resident?

Yes, you can. You don’t have to live in the UK to set up a UK company. What’s more, the registration process is the same as it is for UK residents.

What is the process for non-resident company formation?

Just like for people living in the UK, you can register your company directly via Companies House, the UK’s registrar of companies, or use a company formation agent like 1st Formations. The latter is more manageable, especially for first-time business owners.

We have a simple 4-step registration process. All you need to do is choose a company name, purchase the Non-Residents Package, and tell us about your company. We’ll need to know who the shareholders, directors, and people with significant control (PSCs) are, as well as your business activities (also known as SIC codes).

• What is a limited company SIC code?
• How to register a company in 4 simple steps with 1st Formations
• How to declare UK dividends as a non-UK resident shareholder

Our experts will review your application before submitting it to Companies House, ensuring it’s error-free and increasing your chances of a quick approval. They’re also available via phone, email, or live chat if you need help with your application.

Once Companies House has approved your application, we’ll email you your incorporation documents. The process usually takes under 24 hours, and many companies are incorporated on the same day.

Can a non-resident be a UK company director?

There is no requirement for UK company directors to live in the UK. You must provide a director’s service address when setting up a limited company. This is your official contact address, where you’ll receive all your statutory mail from Companies House, HM Revenue & Customs (HMRC), and other government bodies during your company’s lifetime.

A director’s service address can be anywhere in the world, and it can be your home address. However, this information is publicly visible on the Companies House register. Our non-resident formation package includes a London service address for 12 months to protect your privacy.

This will enable you to use our prestigious central London office as your service address, thereby protecting your personal information and enhancing your corporate image. And don’t worry, you won’t have to travel to the UK to collect your post; we’ll forward everything to you electronically as soon as it arrives.

Can I have an overseas registered office?

No. Unlike the service address, every UK limited company must have an ‘appropriate’ registered office address in the UK. This is where the company will receive its official correspondence.

As per the Companies Act 2006, an ‘appropriate’ address is where company documents can be delivered by hand or post and received by someone acting on behalf of the company. Acknowledgement of delivery is also required.

This means you cannot use a P.O. Box as your registered office address. It must also be a physical address in the same jurisdiction of incorporation.

To help non-residents comply with UK law, our Non-Residents Package also includes a Registered Office Address Service for 12 months. Like the service address option, we’ll receive all your company’s post and email you a copy within 1 working day.

Do I need to provide ID to set up a UK company as a non-resident?

Yes, due to the recent implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), all directors and persons with significant control (PSCs) must verify their ID with Companies House to set up a UK company, either directly through a UK government website or via an Authorised Corporate Service Provider (ACSP). If you register with 1st Formations, you may be asked to also provide proof of address, which we may require to satisfy our anti-money laundering requirements. In many cases we can check your address electronically without requesting further documentation from you.

The most commonly used ID documentation is a biometric passport. If you do not possess a biometric passport, Companies House may inform you that you must verify directly via an ACSP.

Which taxes do UK-registered companies pay?

One of the main taxes you need to pay on your UK company’s profits is Corporation Tax. The current rates are 19% on annual profits up to £50,000 (small profits rate) and 25% on profits over £250,000 (main rate). Usually, companies can claim Marginal Relief on profits between these two thresholds. However, this is not available to non-resident companies. 

Other business taxes you may need to pay include: 

• Income tax–if you’re a director or shareholder registered for Self Assessment
• Value-added tax (VAT)–if your company’s taxable sales exceed £90,000 in a 12-month period
• Capital Gains Tax (CGT)–if/when you dispose of a business asset, such as land or buildings
• Dividend tax–If you receive dividend payments from your company. The current rates range between 10.75%, 35.75%, and 39.35%, depending on your earnings.

Can I have a foreign bank account for my UK company?

Yes, you can. If you use a foreign bank account for your UK company’s finances, ensure it is set up in your company’s registered name. However, we recommend opening a UK business bank account to comply with anti-money laundering regulations and to avoid high conversion rates and transfer fees. 

• How to pay myself from a limited company
• 5 legal obligations after setting up a limited company
• Self Assessment for non-resident UK company owners

As a 1st Formations customer, you can set up your account with one of our trusted partners: Revolut, Wise or Payoneer. You’ll get international business banking services with worldwide coverage, meaning you can open a free account in over 10 local currencies and spend in over 40 currencies. 

Additionally, if you have a foreign bank account, you may need to have your financial documents apostilled before using them in the UK. This can slow down transactions and make them costly and inefficient.

Do non-UK resident directors need to register for Self Assessment?

You don’t need to register for or file annual Self Assessment tax returns if you pay yourself a director’s salary via Pay As You Earn (PAYE). That’s because this income is already taxed, so it is unnecessary to declare it via Self Assessment. To pay yourself a salary, you’ll need to register as an employer with HMRC and operate PAYE as part of your payroll.

Additionally, as long as you don’t receive any other untaxed income from your company, you don’t need to register for Self Assessment. However, you may need to register and submit a tax return if you receive: 

• Income from dividends 
• Reimbursement for allowable expenses 
• A director’s loan 
• Interest payments from banks and building societies 

To file a Self Assessment tax return with HMRC as a non-resident director or owner, complete the SA100 tax return form and declare that you’re a non-UK resident via form SA109. You may have to complete other supplementary pages depending on your sources of income.

In all cases, we suggest seeking the advice of a qualified accountant, as the precise details of Self Assessment registration and returns can vary.

Can I move my company from overseas to the UK?

At the moment, it’s not possible to move the registration of an existing company from another country to the UK. However, there are a few steps you can take if you are looking to relocate your business to the UK or start trading here

For example, you can set up a UK subsidiary, register a UK establishment of a foreign company, set up a UK company and transfer the business, or sell through the existing business via a UK website.

For more information on these four options, read our blog, ‘Can I move my company from another country to the UK?’ 

Start your UK company today with 1st Formations

Starting a company in the UK as a non-resident is relatively simple. However, be mindful of taxation, your statutory addresses, and opening a business bank account. 

Partnering with 1st Formations can save you plenty of time if you’re looking to start a UK company from abroad. We’ll help you with your application, assist you with your statutory obligations, and share regular business news and advice to support you during your company’s lifetime. 

If you have any questions about starting a company in the UK as a non-resident, please post them below, and we will get back to you. In the meantime, be sure to visit the 1st Formations homepage to learn more about our services and discover valuable resources to help you on your entrepreneurial journey.