The United Kingdom (UK) is one of the most attractive destinations for business in the world. It offers a stable and flexible legal system, a favourable tax regime, a skilled and diverse workforce, and access to a large and affluent market. Many non-residents choose to form a UK company to take advantage of these benefits and opportunities.
But how can you form a UK company as a non-resident? What are the requirements, costs, and steps involved? In this article, we will answer these questions and provide some useful tips and resources to help you set up your UK business.
Requirements for forming a UK company as a non-resident
However, there are some general requirements that apply to all UK companies, such as:
- Choosing a unique and suitable name for your company
- Having at least one director and one shareholder (they can be the same person)
- Having a registered office address in the UK (it can be a virtual office or a service address)
- Having a standard industrial classification (SIC) code that describes the nature of your business
- Having a memorandum and articles of association that define the rules and regulations of your company
- Filing an annual return and accounts with the Companies House
- Paying corporation tax and other relevant taxes to the HM Revenue and Customs (HMRC)
Costs for forming a UK company as a non-resident
The costs for forming a UK company as a non-resident depend on the type of company you want to form, the method of registration you choose, and the services you need. The most common types of companies in the UK are:
- Private limited company (LTD): This is the most popular type of company in the UK. It has limited liability, meaning that the owners are not personally responsible for the debts of the company. It can have one or more shareholders and directors, who can be individuals or other companies. The minimum share capital required is £1.
- Public limited company (PLC): This is similar to an LTD, but it can offer its shares to the public and trade on a stock exchange. It has more stringent reporting and disclosure requirements than an LTD. It must have at least two shareholders and two directors, who must be individuals. The minimum share capital required is £50,000.
- Limited liability partnership (LLP): This is a hybrid between a partnership and a company. It has limited liability, but it does not have shareholders or directors. Instead, it has members who share the profits and management of the business. It must have at least two members, who can be individuals or other companies.
The services you need can also affect the cost of forming your UK company as a non-resident. Some of the services you may need are:
- A registered office address: This is the official address of your company in the UK, where you receive correspondence from the government agencies. It must be a physical address in the same country as your company (England, Wales, Scotland, or Northern Ireland). You cannot use a PO box or a mailbox service. If you do not have an address in the UK, you can use a [registered office service provider] to provide you with one for an annual fee.
- A service address: This is the address where you receive correspondence from the Companies House and HMRC as a director or member of your company. It can be different from your registered office address and it can be anywhere in the world. You can also use a [service address provider] to provide you with one for an annual fee.
- A bank account: This is where you deposit and withdraw money for your business transactions. It is advisable to have a UK bank account for your UK company, as it can make it easier to deal with customers, suppliers, and tax authorities. However, opening a UK bank account as a non-resident can be challenging, as most banks require you to have a UK address and proof of identity. You may need to visit the UK in person or use a [specialist bank account provider] to help you open one online.
- An accountant: This is someone who can help you with the financial and tax aspects of your UK company, such as preparing and filing your annual accounts and tax returns, claiming tax reliefs and deductions, and complying with the relevant laws and regulations.
Steps for forming a UK company as a non-resident
The steps for forming a UK company as a non-resident are:
- Choose a type of company that suits your business needs and goals
- Choose a unique and suitable name for your company
- Choose a registered office address and a service address for your company
- Choose at least one director and one shareholder (or two members for an LLP) for your company
- Choose a standard industrial classification (SIC) code that describes the nature of your business
- Choose a memorandum and articles of association that define the rules and regulations of your company
- Register your company with CG Incorporations Limited
- Receive your certificate of incorporation and your unique company number from Companies House
- Register for corporation tax and other relevant taxes with HMRC
- Open a UK bank account for your company
- Hire an accountant to help you with the financial and tax aspects of your company
Contact us today to form your UK company as a non-resident. We can also help you with opening a business bank account, registering for corporation tax, VAT, accounting & nominee director and nominee shareholder services..
Published: 10/26/2023 12:19:16 PM