Is it easy for a non-resident to start a UK company?
The UK is one of the most straightforward, fastest, and most cost-effective places to start a company. Applications are simple and usually processed within a few hours. The best part? It’s just as easy for non-residents to set up a business in the UK.
So, if you’re wondering, “Is it easy for a non-resident to start a UK company?” – the answer is yes! If you’re based overseas and considering forming a UK company, we address some of the most common questions about the process and managing a UK business from abroad below.
- UK company directors can reside anywhere globally, and their service address doesn’t need to be in the UK. However, we recommend using Startxpress address services to protect your personal details from the public register.
- A UK-based registered office address is required to establish a UK company.
- UK-registered companies must comply with tax obligations, including Corporation Tax and VAT.
Can I set up a UK company as a non-resident?
Yes, absolutely! You don’t need to live in the UK to register a UK company. The process is almost the same as it is for UK residents.
What is the process for non-resident company formation?
Just like UK residents, you can register your company directly through Companies House, the UK’s official registrar of companies, or use a company formation agent like Startxpress. Using an agent is often more convenient, especially for first-time business owners.
Our registration process is simple and hassle-free. Just choose a company name, select a package, and provide details about your business. We’ll need information about the shareholders, directors, and persons with significant control (PSCs), as well as your business activities (also known as SIC codes).
Our experts will review your application before submitting it to Companies House, ensuring it’s accurate and increasing your chances of fast approval. If you need assistance, they’re available via phone, email, or live chat.
Once Companies House approves your application, we’ll send your incorporation documents via email. The process typically takes less than 24 hours, with many companies being incorporated the same day.
Can a non-resident be a UK company director?
There is no requirement for UK company directors to reside in the UK. When you set up a limited company, you must provide a director’s service address. This address serves as your official contact point for receiving all statutory mail from Companies House, HMRC, and other government agencies throughout your company’s lifetime.
You can choose any address worldwide as your director’s service address – even your home address – but remember that this information appears publicly on the Companies House register. To protect your privacy, our company formation packages include a London service address. With this option, you can use our prestigious central London office as your service address, safeguarding your personal information while enhancing your corporate image.
Moreover, you won’t need to travel to the UK to collect your post; we will forward all correspondence 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 address serves as the official destination for your company’s correspondence.
According to the Companies Act 2006, an appropriate address is one where company documents can be delivered by hand or by post and received by someone acting on behalf of the company, with an acknowledgment of delivery. Consequently, you cannot use a PO Box as your registered office address; it must be a physical address in the same jurisdiction as your incorporation.
To help non-residents comply with UK law, our company formation packages include a Registered Office Address Service. With this service, we receive all your company’s mail and email you a copy within one working day.
Do I need to provide an ID to set up a UK company as a non-resident?
How you register affects the identification requirements. If you apply directly through Companies House, you currently face no ID checks when forming a company.
However, new legislation under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) will soon require all company officers and people with significant control to verify their identity upon incorporation. This change is expected to take effect in Autumn 2025.
If you register with Startxpress, we ask all of our customers to provide proof of both identity and address. Specifically, we require a passport or national ID card along with a recent bank statement or utility bill that confirms your address.
Which taxes do UK-registered companies pay?
One of the main taxes on your UK company’s profits is Corporation Tax. Currently, UK companies pay 19% on annual profits up to £50,000 (the small profits rate) and 25% on profits over £250,000 (the main rate). Typically, companies can claim Marginal Relief on profits between these two thresholds. However, note that Marginal Relief is not available to non-resident companies.
Other essential business taxes you may need to consider include:
- Income Tax: Applicable if you’re a director or shareholder registered for Self Assessment.
- Value-Added Tax (VAT): Required if your company’s taxable sales exceed £90,000 within a 12-month period.
- Capital Gains Tax (CGT): Due when you dispose of a business asset, such as land or buildings.
- Dividend Tax: If you receive dividend payments from your company, the current dividend tax rates range between 8.75%, 33.75%, and 39.35%, depending on your total earnings.
Understanding these taxes and how they apply to your business is crucial for managing your financial obligations in the UK. Make sure to consult with a tax professional to optimize your tax strategy, especially if your company is non-resident or operates internationally.
Can I have a foreign bank account for my UK company?
Yes, you can use a foreign bank account for your UK company’s finances, but 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. As a Startxpress customer, you can easily set up your account with our trusted partners and enjoy international business banking services with worldwide coverage.
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 through Pay As You Earn (PAYE). Since this income is already taxed, there’s no need 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 system.
If you don’t receive any untaxed income from your company, you don’t need to register for Self Assessment. However, you may need to register and file a tax return if you receive:
- Taxable income exceeding £150,000 a year
- Dividend income
- Reimbursement for allowable expenses
- A director’s loan
- Interest payments from banks or building societies
To file a Self Assessment tax return as a non-resident director or shareholder, complete the SA100 tax return form and indicate your non-UK resident status on form SA109. You might need to fill out additional supplementary pages based on your sources of income.
For accurate guidance, we recommend consulting a qualified accountant, as the specifics of Self Assessment registration and filing can vary.
Can I move my company from overseas to the UK?
Currently, it’s not possible to transfer the registration of an existing company from another country to the UK. However, there are several options if you’re looking to move your business to the UK or start trading here. For example, you can establish a UK subsidiary, register a UK branch for a foreign company, create a new UK company and transfer the business, or sell through your existing business via a UK-based website.
FAQs
Is it easy for a non-resident to start a UK company?
Yes, the process is straightforward for non-residents. Applications are processed quickly, and the requirements are similar to those for UK residents.
Can I set up a UK company if I’m a non-resident?
Yes, you can set up a UK company without living in the UK. The process is the same for non-residents, and company formation can be done through Companies House or a formation agent like Startxpress.
Do I need to be in the UK to be a company director?
No, UK company directors do not need to reside in the UK. However, a service address (which can be anywhere globally) must be provided for statutory communication.
Do I need to provide proof of identity to register a UK company?
While direct registration with Companies House doesn’t require ID checks, using services like Startxpress requires submitting proof of identity and address to comply with regulations.
Which taxes apply to UK-registered companies?
UK companies pay Corporation Tax (19-25%), VAT if sales exceed £90,000, and may also be liable for Income Tax, Dividend Tax, and Capital Gains Tax, depending on the business and director’s income.
Do you have any other questions?
Starting a company in the UK as a non-resident is straightforward, but it’s important to consider factors like taxation, statutory addresses, and opening a business bank account.
By partnering with Startxpress, you can save time when setting up your UK company from abroad. We’ll assist you with your application, help you meet statutory requirements, and provide regular business news and advice to support you throughout your company’s journey.
For more details, check out the Startxpress Help Center and Startxpress Blog.
If you have any more questions or need further assistance, feel free to reach out to us via support@startxpress.io. Our team is here to support you every step of the way.
İbrahim Kekeç
from Turkey
“Startxpress made obtaining my EIN and ITIN, along with setting up my LLC, effortless. The process was quick with seamless bookkeeping services. The team handled every aspect with precision.”
May 2024
Batuhan Taşçı
from Ireland
“Fast-track EIN services and comprehensive financial solutions. Startxpress’s attention to detail in bookkeeping and compliance is truly impressive.”
Jan 2024
Fırat Toker
from Turkey
“Transparent service that sets new standards. From company formation to banking, every step was perfectly executed with clear communication.”
Jan 2024
Eray Vural
from Turkey
“Flawless UK company setup with banking integration. The team’s expertise made the entire process completely stress-free and efficient.”
Jun 2024
Bayram Yazar
from Turkey
“Startxpress extends its efficiency to both the USA and the UK, providing entrepreneurs with a seamless experience. In the USA, their swift handling of obtaining an Employer Identification Number (EIN) and facilitating company formation underscores their commitment to a quick and hassle-free start. Simultaneously, for those venturing into the UK business landscape, Startxpress continues to shine. The process of initiating a business in the UK is streamlined, reflecting their expertise in navigating international business requirements. Notably, opening a business bank account in both regions is remarkably easy, showcasing Startxpress’s dedication to simplifying essential financial steps globally. For entrepreneurs with aspirations on both sides of the Atlantic, Startxpress proves to be a versatile and efficient partner in facilitating a prompt and successful business launch.”
Jan 13, 2024
İbrahim Kekeç
from Turkey
“Startxpress made obtaining my EIN and ITIN, along with setting up my LLC, effortless. The process was quick with seamless bookkeeping services. The team handled every aspect with precision.”
May 2024
Batuhan Taşçı
from Ireland
“Fast-track EIN services and comprehensive financial solutions. Startxpress’s attention to detail in bookkeeping and compliance is truly impressive.”
Jan 2024
Fırat Toker
from Turkey
“Transparent service that sets new standards. From company formation to banking, every step was perfectly executed with clear communication.”
Jan 2024
Eray Vural
from Turkey
“Flawless UK company setup with banking integration. The team’s expertise made the entire process completely stress-free and efficient.”
Jun 2024
Bayram Yazar
from Turkey
“Startxpress extends its efficiency to both the USA and the UK, providing entrepreneurs with a seamless experience. In the USA, their swift handling of obtaining an Employer Identification Number (EIN) and facilitating company formation underscores their commitment to a quick and hassle-free start. Simultaneously, for those venturing into the UK business landscape, Startxpress continues to shine. The process of initiating a business in the UK is streamlined, reflecting their expertise in navigating international business requirements. Notably, opening a business bank account in both regions is remarkably easy, showcasing Startxpress’s dedication to simplifying essential financial steps globally. For entrepreneurs with aspirations on both sides of the Atlantic, Startxpress proves to be a versatile and efficient partner in facilitating a prompt and successful business launch.”
Jan 13, 2024
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