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Some countries appear attractive for doing business, so non-residents may be curious about whether to set up a company there. Fortunately, in the UK, the process of setting up a business is simple, even for a foreigner.

So, can a non-UK resident form a UK limited (LTD) company? Yes,  but there are certain specifics to be aware of.

 In this article we’ll make it clear how to register a company in the UK, even for non-residents, and also describe the main advantages for foreigners who start a business in the United Kingdom, tell you how to set up a limited company online, and answer some frequently asked questions.

Features of UK Company Formation for Non-Residents

In general, limited company formation for non-UK residents doesn’t differ much from the process UK citizens have to go through. You will only need to register the organisation with the Companies House and have a specific bank account. Here are a few basic considerations for forming a limited company.

Main requirements

The registration requirements are the same for residents and non-residents. That is, a business cannot be registered without the approval of the UK Companies House. Secondly, the registered office must be located in the UK and correspond to the place where the company is based. For example, if the company is English, then an English address is needed, and if the company is Welsh, then it must have an address in Wales, and so on. 

Address registration 

When registering a limited company in the UK as a foreigner, it’s important to have a physical address in that country. This will be listed in the public register, and it will be the address to which all correspondence from Companies House and HMRC is sent.

However, a non-resident doesn’t need to visit the country to register an office or branch.

Companies House registration

Next, setting up a limited company in the UK by non-residents requires owners to provide the same set of data that residents must provide when registering with Companies House — the names of the company, director, shareholders and the constitution documents of the Memorandum of Association.

Bank account for non-UK residents

Comparing UK limited company formation for non-residents and residents, a question may arise regarding UK bank account requirements. Residents can indicate their usual account, but non-residents will have to make a new local one. Permanent residence in the country is not required, but a physical presence is generally necessary to create a bank account.

Alternatively, non-residents can search for a virtual office address for a bank account or choose a UK bank offering international account opening services.

Documents

The required documents are also the same for residents and non-residents. However, if you are going to be running a UK limited company as a non-UK resident for the first time, then make sure you are ready to provide Companies House with certified copies of the company’s accounting and constituent documents:

• Email copies and printed versions of the Certificate of Incorporation, Share Certificate(s), Memorandum & Articles;
• An email copy of the Company Register with the First Entries.

Documents need to be correctly translated into English.

Setting Up a UK Limited Company as a Non-UK Resident

Currently, starting a business in the UK as a foreigner can be completed entirely online. You can do this with printed documents, but online options make the process easier and faster. Online registration is available to everyone, regardless of their actual place of residence.

Registering the company

Can a non-UK resident start a limited company in the UK? The good news is that they can, and the process itself can be completed by following these steps:

1. Decide where your company will be based. If you have several offices, then you need to choose which one will be registered. 
2. Next, you must create a business structure: draw up a plan for hiring employees and managing business expenses, including rent, tax bills and financing.
3. After planning is complete, you can register the company name. (Reminder: choose unique brand names that are not similar to those of your competitors; otherwise, you will face legal challenges. Use special tools to search for competing brands online so that the name you select is definitely not infringing on a copyright)
4. Register the director of the company.
5. Register the shareholders, if your company will have them (a director can also be a shareholder). Also, set the share price.
6. Create a memorandum of association, which will later be signed by all organisation shareholders.
7. Register your company for tax (be sure to do this no later than the first three months from the start of the business).

After creating a limited company online, you just have to monitor accounting and pay taxes promptly and carefully. Organisations are required to file tax returns each year, whether this is done by a full-time employee or an external accountant (more relevant for those who operate companies from abroad).

The legal frameworks available for forming a company as a non-resident

Every UK business needs to be registered as one of three ‘legal frameworks’, or ‘structures’: sole trader, Limited Company or Partnership.

It doesn’t matter how new your business is, or that you’re a non-resident—you must register as one of these three frameworks. Let’s look at them in more detail:

Sole trader

If you register as a sole trader you are a self-employed person that owns and runs their own business. As a sole trader there is no separate legal identity between you and the business—you are the business.

You will have absolute control over the business, its assets and profits, but you will also retain full liability for debts.

Registering as a sole trader is the most simple legal structure for your business and you won’t be required to register with Companies House.

Limited Company

Unlike registering as a sole trader, a limited company is legally separate from the owner. ‘Limited’ refers to limited liability, which protects the owner from personal liability for the business’ debts and obligations. This means that the owners personal assets (such as their family home) are not at risk if the business faces financial difficulties. This is what makes registering as a limited company advantageous for small business owners.

However, limited companies have more legal obligations than a sole trader. They must be incorporated at Companies House and make regular filings of information which is held on the public register and available for everyone to see.

Partnership

A partnership is like a Limited Company in that it is a separate legal entity from the business owners. You would register your business as a Partnership if you wished to share responsibility for the company between two or more people, including debts, losses and profits.

Office Address Requirements

When registering a business in the UK it must be:

• A physical address in the UK
• In the same region as the company is registered in. So, if your company is registered in Wales, the office address must also be in Wales.
• ‘Appropriate’, that is, either the business owner or someone acting on behalf of the business owner will be aware when post that is addressed and delivered to the company has been received. It must also be possible for the sender to get confirmation of delivery.

Note that it’s no longer possible to use a PO Box as a registered office address so most organisations looking for this end up searching for a PO Box alternative  instead.

Choosing a business address

When setting up a business as a non-UK resident, it’s unlikely you’ll want or need an actual ‘working’ office. If you’re going to be working from outside of the UK for all or most of the year, this will be an unnecessary and large expense to manage.

Fortunately, virtual offices provide a cost effective and, importantly, legally compliant solution. For example, at The Hoxton Mix we offer a range of virtual office address options that can handle, scan and email, or forward on your business mail to an address of your choice.

Benefits for Non-UK Residents of Registering a Limited Company in the UK

We may have answered the question, “Can a foreigner register a company in the UK?”, but why do people even ask that and go through the whole registration process? The fact is that the laws foreign nationals face in their home country may not be as attractive as in Britain. 

Here are the main advantages of doing business in the UK without being a UK resident:

• Having a business in one of the safest and largest economies in the world with a fairly stable national currency — the pound;
• After registration in the UK, the company isn’t required to comply with EU law, unlike registration in other countries in Europe;
• You can become the owner of a company not only in England but also in Wales or Northern Ireland, as the jurisdiction will be the same for a non-resident.

Planning to start your own business? Check out our guide on how to register a company in the UK for essential tips and steps.

Practical Considerations for Forming a UK Limited Company

Once you’ve decided that you’re going to form a business in the UK as a non-citizen, there are some practical considerations you should think about in addition to setting up your virtual office.

Communication and documentation

If you’re forming a UK limited company as a foreigner and won’t be establishing an official business office, you still need to be able to receive important communication and documentation from Companies House and HMRC.

Here at The Hoxton Mix we offer a wide range of virtual office services that ensure you can receive all of your business comms securely.

For just £20 per month, we’ll scan and email all of your post to you within one business day, while we can also forward the hard copies to you in addition to emailing digital copies. We also offer the option to collect your mail from our London office up to 30 days from receiving it.

Utilising professional services

If you start a UK business as a non-resident you’ll need a dedicated and genuine physical address for official business comms, but there are a number of other professional services that you could benefit from.

For example, some of your customers will want to be able to call you when necessary, but they might be put off if you’re publishing a non-UK phone number. Fortunately, we’ve got you covered, with a prime London virtual phone number that includes call forwarding to your personal phone.

What’s more, we can even help you with your company’s formation and registration in partnership with Crunch, while we can also set up a free business bank account with Tide.

Company Formation and Registration with The Hoxton Mix

Are you ready to launch your new business in the UK as a non-resident? Here at The Hoxton Mix we don’t just provide virtual office services—we can even help you to form and register your new company too.

We’ve partnered with Crunch, the award-winning online accountancy experts, to offer limited company formation for just £50. What's more, if you take out one of our virtual office plans we’ll give you £10 credit towards your company formation.

With The Hoxton Mix and Crunch registered your new company has never been easier. You’ll benefit from expert customer support, while you’ll also receive all of the important documentation, including a Certificate of Incorporation, Share Certificate, Articles of Association, Memorandum of Association and the Combined Register.

So, what are you waiting for? Register your brand new UK limited company today and begin taking advantage of the financial opportunities available to you. We can’t wait to help you get started.

FAQ

Can a non-UK resident form a UK limited company?

Yes. According to UK legislation, both a resident of the country and a non-resident can form a business in the UK. The requirements for registering a company are the same for both, but non-residents will need to ensure they have a UK address and bank account

What are the benefits for non-UK residents of registering a limited company in the UK?

By registering a company in the UK, non-residents can conduct business legally in a safe economic environment built on a stable currency. In addition, after Brexit, the country is not subject to EU law, so the company will only have to follow UK regulations. The advantage is that the registration process is equally simple for residents and non-residents and can be conducted online.

What are the steps to forming a UK limited company by a non-UK resident?

The main steps include registering a physical address and a UK bank account, collecting a package of documents and translating them into English, and registering with Companies House.