How to form a UK company as a non-UK resident
Forming a UK company is a quick, easy, and entirely online process, though paper documents are also an option. The best part? Anyone can set up a UK limited company, regardless of where they live.
In this article, we wil show you how to form a private company limited by shares – the most popular type of company in the UK – as a non-UK resident.
Companies House or a company formation agent?
Companies House serves as the UK’s registrar of companies, which means that no UK limited company can be formed without their approval.
Once a company is successfully formed, it is placed to the Companies House register, making certain information about the company freely available to the public through the Companies House search tool.
The purpose of the register is to provide transparency in the limited company structure.
While you can form a company directly with Companies House, many business owners choose to work with a company formation agent (such as Startxpress). Formation agents offer additional services that Companies House does not, both before and after the formation process, including professional advice and support.
Here are some of the features and services we offer:
- Tailored company formation packages to meet specific needs
- Hands-on support throughout the company formation process, including a pre-submission review to ensure all provided information is accurate and complete.
- Address services where the formation agent provides their address as the company’s registered office and as the director’s service address (particularly beneficial for non-UK residents, details below).
- Help with filing the confirmation statement and company accounts, which are annual filing obligations
- Assistance in registering the company for VAT and PAYE
It’s important to note that there is no difference between a company formed directly through Companies House and one formed with a company formation agent.
The registered office must be based in the United Kingdom
One challenge non-UK residents may face when forming a company is that the registered office (the official address for the company) must be located in the UK.
However, the company’s officers do not need to live or work at this address. The key requirement is that official mail from government bodies, such as Companies House and HMRC, is received by the company officer(s).
To address this, UK-based accountants and company formation agents often offer their address as the company’s registered office. They ensure that the company officers receive all official correspondence delivered to this address. This arrangement is permitted by Companies House.
How to form your company, as a non-UK resident, with Startxpress
Forming a limited company with us involves just a few simple steps:
Choose your company name
First, choose a unique name for your business that isn’t similar to any existing names on the Companies House register.
- How do you register a company name?
- Does a company name need to include Limited or Ltd?
- What to consider when choosing a company name in the UK
- Company Names that require additional reviews
Our company name search tool will quickly tell you if your chosen name is available. If it isn’t, don’t worry – you can use the tool as often as needed, free of charge.
Pick the UK company formation package that’s right for you
We provide company formation services tailored for customers who don’t live in the UK, including a London registered office service (essential for forming a UK limited company, which requires a UK address for the registered office). Browse our various company formation packages to find the one that best fits your needs. Once you’ve selected your package, simply proceed to checkout and make your payment.
Start the company formation process
Now it’s time to appoint the roles for the company: the director (who will manage the company), the shareholder (who will own the company), and the person with significant control (who will have ultimate control over the company). A single person can form a company and take on all the roles, such as director and shareholder. Alternatively, these roles can be divided and assigned to different individuals.
You’ll need to provide basic personal information, including residential addresses, for making the necessary appointments. It’s perfectly acceptable if these addresses are outside the UK.
The only address that must be based in the UK is the registered office. If you’ve chosen a package that includes our registered office service, you’ll be able to use our address at the appropriate stage of the company formation process.
Your company shares
When adding your shareholder(s), you’ll need to provide details about their shares, including:
- Type of shares
- Number of shares
- Value of shares
These shares determine the ownership distribution of the company. For instance:
- 1 shareholder with 1 share owns 100% of the company.
- 2 shareholders with 1 share each, of equal value, each own 50% of the company.
- 10 shareholders with 1 share each, of equal value, each own 10% of the company.
You can decide how to allocate shares as you see fit. To keep things straightforward, we recommend starting with a small number of shares at a low nominal value. It’s much easier to issue additional shares later than to remove them.
It’s important to remember that shareholders are liable for the value of the shares they hold. For example, if you issue £10,000 worth of shares to a shareholder and the company encounters financial difficulties, this is the amount the shareholder might have to pay.
The memorandum and articles of association
At a certain point in the process, you’ll encounter a step for the memorandum and articles of association. These documents specify the rules for how the company will be operated.
A default set of memorandum and articles is included in your package and will be suitable for most companies. While you have the option to create and upload your own documents, doing so can be complex and may risk delaying or jeopardizing your company formation application.
Review your UK company formation
The final step is to review all the information you’ve provided. If you spot any errors, make the necessary corrections before submitting your application.
We’ll notify you via email as soon as your company has been formed. The time it takes can vary depending on Companies House’s workload, but it can be as quick as 24 hours.
Ready to start your own limited company?
Our UK Company Formation Packages provide everything you need to establish a UK limited company as a non-UK resident, including:
- UK company registration in as little as 24 hours
- UK business bank account opening (subject to approval)
- London-based registered office and business address services
- The Next Generation Company Operating System
Do you have any other questions?
So, if you’re a non-UK resident looking to form a UK company, you’ll need a registered UK address, a director, and a shareholder. Directors and shareholders don’t have to be UK residents, but having a UK-based service provider can streamline the process. You’ll also need to register your company with Companies House and stay compliant by filing annual accounts and tax returns.
For more details, check out the Startxpress Help Center and Blog. If you need assistance, contact us at support@startxpress.io! We’re here to help make managing your business as smooth as possible.
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