Foreign nationals can register businesses in the UK as easily as locals. If you are thinking of establishing a company abroad, now is a great time to do it. One of the most robust economies welcomes entrepreneurs from all over the world.
The most efficient approach to registration involves an intermediary. Your agent can also provide a non resident bank account in the UK and an app as a bonus! Proof of address is not required, but visa requirements apply. Here is an overview of the formalities.
Procedures for Foreigners
UK laws allow non-residents to establish local businesses. Every company must be registered to a physical address in the UK, but there are several ways to acquire one. For instance, you could purchase a virtual office address through an intermediary or rent physical premises.
Why Is a Physical Address Mandatory?
Every business must have a physical address for accountability and correspondence purposes. It is also a condition for legitimate ownership. On the upside, entrepreneurs do not need a visa if they will stay in their home country and work from there.
Suppose you live in Poland and want to establish an SEO agency in the UK. You can register it remotely, which is a major benefit. However, it is impossible to join the local workforce without a visa. You have two options:
- Selling goods and services while staying in your home country. In this case, you will pay corporation tax on business income.
- Hiring staff who are authorized to work in the United Kingdom. In addition to the corporation tax, you will pay tax on their earnings.
As mentioned above, a registration agent will help you deal with all formalities quickly and with minimal effort. A company like Go Solo will submit the documents to Companies House, which registers and dissolves enterprises in the country.
Key Facts About Starting a Business in the UK as a Non-resident
- Registration procedures are the same for residents and non-residents. Depending on the formation type (sole trader, limited company, partnership, etc.), businesses are registered with Companies House or HMRC.
- Owners are not obliged to set up a business bank account. However, this is a sensible thing to do as you can manage cash flows more efficiently. If all money goes into your local bank, the institution will charge high fees for international transfers.
- The limited (Ltd.) model has one major advantage — the absence of personal liability. Partners and sole traders are personally liable if their companies experience financial troubles. This does not happen with Ltd.
- One of the most popular options is Ltd. with one director and shareholder. The owner may act as both.
- If you want to sell shares to the public, you must have a PLC (public limited company).
- Mistakes in applications can lead to additional costs and even blacklisting. Hire a reliable agent to ensure accuracy.
Other Required Information
Apart from a physical address, entrepreneurs must provide a unique company name, information about the directors and shareholders, and documents of formation. The latter include a memorandum of association and articles of association. Your registration agent will guide you through the process. It should only take a few business days!