Setting up a business in the United Kingdom is straightforward, even for non-residents. However, it is essential to be aware of certain specific requirements.
This article will delve deeper into the topic to comprehensively understand how non-residents can open a limited company in the UK. We will outline the primary advantages for foreign individuals starting a business in the UK, explain the process of setting up a limited company online, and address frequently asked questions.
Considerations for non-UK Residents Forming a UK Limited Company
In general, forming a limited company (LTD) for non-UK residents resembles the requirements for residents. The registration requirements are identical for both residents and non-residents. Approval from the UK Companies House is mandatory for registering a business. The registered office must also be in the UK and correspond to the company’s base. For instance, if the company is based in England, an English address is required; if it is based in Wales, a Welsh address must be provided, and so on.
Benefits of Registering an LTD Company in the UK
Have you ever wondered why people inquire about the possibility of setting up a limited company in the UK as a foreigner? The reason is simple: the laws governing foreign nationals in their own countries may not be as favourable as those in the UK. Let’s explore the key advantages of conducting business in the UK, even if you’re not a UK resident:
- Access to a Secure and Thriving Economy: By establishing a business in the UK, you gain entry to one of the world’s safest and largest economies. With its stable national currency, the pound, you can enjoy the benefits of operating in a financially robust environment.
- Exemption from EU Law: Unlike registering a company in other European countries, a UK-registered company is not bound by EU regulations after the Brexit transition. This provides greater flexibility and autonomy in conducting your business operations.
- Nationwide Jurisdiction: When you register a company in the UK as a non-resident, you can become a company owner in England, Wales, or Northern Ireland. The jurisdiction remains the same, offering consistency and convenience for your business endeavours.
When registering a limited company in the UK as a foreigner, having a physical address in the country is crucial. This address will be listed in the public register and be the recipient of all correspondence from Companies House and HMRC (His Majesty’s Revenue and Customs).
Non-residents are not obligated to visit the UK to register an office or branch. Instead, they can utilise a designated PO box as a legal or accounting office address. On the other hand, residents may use their home address if they do not have a physical office location.
Companies House Registration
Registering an LTD company in the UK as a non-resident requires providing the same information as residents when registering with Companies House. This includes the company’s name, the director’s details, shareholders’ information, and the constitution documents of the Memorandum of Association.
Opening a Bank Account for non-UK Residents
Permanent residency in the UK is not needed to open a business bank account. However, a physical presence is generally required to create a bank account. Residents can use their existing accounts, while non-residents will need to open a new local account.
Alternatively, non-residents can explore options for virtual office addresses to open a bank account or choose a UK bank that offers international account opening services.
The required documents are the same for both residents and non-residents:
A UK-registered office address
This address will be your legal company address on public record. It must be a UK address, and you will receive letters from HMRC and Companies House on this address.
- Full name
- Date of Birth
- Country of Residence
- Residential Address
- Full name
- Residential Address
- Share Currency
- Number of Shares
- Value Per Share
Should you require assistance on this topic, our team of specialists will guide your formation of a new UK based company, set up a business bank account and corporate brand identity. Get in touch for a free consultation.