Are you a non-resident entrepreneur who wants to start a business in the UK? If so, you may be wondering how to go about setting up a UK company and what are the benefits and challenges of doing so. In this article, we will explain the process and the requirements of setting up a UK company as a non-resident entrepreneur, and we will also share some tips and resources to help you along the way.
Why Start a Business in the UK as a Non-Resident?
The UK is one of the most attractive destinations for starting a business, especially for non-residents. Here are some of the reasons why:
- The UK has a large and diverse market, with over 66 million consumers and a GDP of over $2.8 trillion.
- The UK has a strong and stable economy, ranking sixth in the world by nominal GDP and fifth by purchasing power parity.
- The UK has a favourable business environment, ranking eighth in the world by ease of doing business and fourth by innovation.
- The UK has a low corporate tax rate, at 19%, and offers various tax reliefs and incentives for businesses.
- The UK has a well-established legal system, transparent regulations, and a high level of protection for intellectual property rights.
- The UK has access to talent, with world-class universities and a skilled and diverse workforce.
How to Set Up a UK Company as a Non-Resident?
Setting up a UK company as a non-resident is not difficult, as the process and the legal requirements are the same for everyone. However, there are some specific steps and considerations that you need to take into account. Here are the main steps to set up a UK company as a non-resident:
- Choose a business structure: There are different types of business structures that you can choose from, such as sole trader, partnership, limited liability partnership (LLP), or limited company. Each structure has its own advantages and disadvantages, depending on your needs and goals. For most non-residents, the best option is to form a limited company, as it offers limited liability, credibility, and flexibility.
- Choose a company name: You need to pick a unique and suitable name for your company, and check that it is not already taken or too similar to another existing name. You can use the Companies House name availability checker to verify the availability of your chosen name.
- Choose a registered office address: You need to provide a physical address in the UK where your company can receive official mail and documents. The address must be in the same country where your company is registered, which can be England, Wales, Scotland, or Northern Ireland. You can use your own address, a friend’s or family’s address, or a professional service provider’s address. You can also use a virtual office service, such as CG Incorporations, to get a registered office address and mail forwarding service.
- Choose a director and a shareholder: You need to appoint at least one director and one shareholder for your company. The director is the person who is responsible for running the company and making decisions. The shareholder is the person who owns the company and has the right to receive profits. The director and the shareholder can be the same person, or different people. They do not have to be UK residents, but they must be at least 16 years old and not disqualified from being a director or a shareholder. You can also use nominee director and nominee shareholder services to facilitate the director and shareholder requirements or to provide anonymous company ownership.
- Register your company using CG Incorporations, a company formation agent.
- Open a business bank account: You need to open a business bank account in the UK to manage your company’s finances and transactions. This can be challenging for non-residents, as some banks may have stricter requirements and criteria for non-UK residents. You may need to have a UK address, a UK phone number, a UK credit history, or a minimum deposit to open a business bank account. You may also need to visit a branch in person, or to wait for a long time to get your account approved. Therefore, you should compare different banks and their offers, and you should check their eligibility and application process before opening a business bank account. Alternatively, you can use an online banking service, to get a UK business bank account without the hassle.
Tips and Resources for Setting Up a UK Company as a Non-Resident
Setting up a UK company as a non-resident can be a rewarding and profitable venture, but it also comes with some challenges and responsibilities. Here are some tips and resources to help you succeed:
- Get professional advice: Setting up a UK company as a non-resident involves various legal, tax, and accounting issues that you may not be familiar with. Therefore, it is advisable to get professional advice from a qualified accountant, lawyer, or business consultant, such as CG Incorporation who can guide you through the process and help you comply with the UK laws and regulations.
- Get a UK phone number: Having a UK phone number can help you communicate with your customers, suppliers, and partners in the UK, and also enhance your credibility and reputation. You can get a UK phone number without having a UK address or phone line, by using a virtual phone service.
- Get a UK domain name: Having a UK domain name, such as .co.uk or .uk, can help you establish your online presence and identity in the UK, and also improve your SEO and visibility. We can provide you with a domain name.
- Get a UK trademark: Having a UK trademark can help you protect your brand name, logo, and slogan from being copied or used by others without your permission. You can get a UK trademark without having a UK address, by using our Trademark registration service.
Setting up a UK company as a non-resident is possible and beneficial, as the UK offers a great opportunity for starting and growing a business. However, it also requires some planning and preparation, as there are some steps and considerations that you need to follow and take into account. By following this guide, and using the tips and resources provided, you can set up a UK company as a non-resident with ease and confidence.
Published: 1/3/2024 7:02:37 AM