How to Register a Company in the UK from Abroad: A Step-by-Step Guide
The United Kingdom (UK) is one of the most stable economies in the world. So, it’s unsurprising that many foreign nationals choose the country as their prime investment destination.
However, one of the frequently asked questions by many non-UK business owners is whether they can open up a company in the country.
There are no existing laws barring foreign-based investors from establishing companies in the UK. That means you don’t need to be a UK resident to tap into the country’s thriving economy.
Your only concern would be what it takes to register UK companies for non-residents. And that’s what this post shall focus on.
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Primary Requirements for Registering a UK Company for Non-residents
The most important thing you need to register a company in UK from abroad is a UK-registered office address.
Fortunately, the address doesn’t have to be directly associated with your company. You can lease a friend or relative’s address.
Alternatively, you could simply set up a virtual office address.
Who Must Register A UK Company From Abroad?
Non-resident businesspersons must register their ventures in the UK if they’ve set up a place of business in the country.
Assume that you’re a French-based wine dealer with your company headquartered in Paris but have been mulling opening up a branch in London, United Kingdom.
The implication is that you’ll be having a fully operational business within UK borders. Therefore, you must get it registered even if it’s only a smaller branch of your larger wine distribution company.
Another instance where you may need to register a business in the United Kingdom is if you usually conduct business somewhere in the country.
This provision typically applies to seasonal and online businesses. The fact that you normally benefit economically from the UK market underscores the need to obtain full registration and license.
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Who Must Not Register A UK Company From Abroad?
Not every non-resident investor must register their company in the United Kingdom.
First, the type of company you operate determines whether registration is mandatory.
You can only register limited liability companies (LLCs) and corporations in the UK from abroad. Partnerships and unincorporated bodies are exempted from this rule. Be sure to contact the Department for Business and Trade (DBT) for more information on the specific company types that you can register in the UK from overseas.
You also do not have to register your business in the UK if you have no operational base in the country.
Lastly, most real estate businesses are exempt from express registration provided that the investor can register for corporation tax.
Contact His Majesty (HM) Revenue and Customs (HMRC) to register for corporation tax if you’re developing real estate property (land, residential and commercial apartments, etc.) in the UK. You’ll need your tax registration to pay for corporation tax whenever you dispose of a profit-earning real estate property in the country.
Documents for Registering a UK Company for Non-residents
Certain documentation is necessary before setting up a place of business in the UK for overseas investors.
One such document is proof of directorship and shareholding.
UK regulations require all limited companies to have at least one director and one shareholder. The said individuals must be aged over 16 years and have demonstrated a capacity to handle business liabilities. Note that the same person can double as a director and shareholder.
As previously hinted, you must also provide proof of a UK-registered address. If you prefer to lease the address from a friend or relative, ensure it’s duly paid and fully operational.
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What are bank account details?
Having a UK bank account isn’t mandatory to set up a business in the country from abroad.
You could decide to handle all transactions using the bank accounts in your location. Better yet, the account doesn’t need to have been opened specifically for the business. You could simply make do with your personal bank account.
However, there are several perks of having a UK-based bank account if you’re doing business in the country.
First, it becomes more convenient to handle local transactions. You don’t need to worry about currency conversion rates when processing local transactions.
A UK-based bank account also lends credence to your company’s credibility. It’s an ingenious way to win the confidence of various business stakeholders, including customers, suppliers, and financiers.
Lastly, while not outright mandatory, you may be called upon to provide your bank account number and recent bank statements in some instances. The statements provide solid proof of your capacity to handle business liabilities.
Procedure for Registering a UK Company for Non-residents
All UK business registrations go through Companies House. That applies to domestic companies and those owned by non-UK residents. You can apply for registration directly or through an agent.
To register your company in the UK from abroad, you’ll need to fill out the OS IN01 form and mail it to Companies House within a month of opening for business. The application costs £20, which you must send along with the application form.
If your registration goes through, Companies House will email you PDF documents with your certificate of incorporation, shareholder share certificates, memorandum, and articles of association.
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Wrap Up
Registering a company in the UK from abroad is quick and easy. You can apply for registration within minutes, provided that you have the required documentation.
Alternatively, you might engage a UK-based agent to handle the process on your behalf.
