How to Form a UK Company as a Non-Resident

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The United Kingdom is widely recognised as one of the world’s most business-friendly destinations — offering a stable legal framework, transparent regulatory environment, robust financial infrastructure, and direct access to global markets. It’s no surprise that thousands of international entrepreneurs choose the UK as a base for their ventures each year.

The best part? You do not need to be a UK resident or citizen to start a form a UK company. There are no residency or nationality restrictions on company formation, making it an accessible and attractive option for overseas founders.

If you’re an entrepreneur, investor, or business owner based outside the UK and looking to expand internationally or launch a UK-based limited company, this guide will walk you through how to form a UK company as a non-resident, including:

  • The legal and practical requirements
  • Step-by-step company formation process
  • Address and banking considerations
  • How to stay compliant with UK tax and reporting rules from abroad

Whether you’re starting a brand-new business or creating a UK presence for an existing one, forming a company remotely is entirely possible — especially with the right support from a trusted UK company formation agent.

Can a Non-Resident Start a Business in the UK?

Yes – non-residents can legally register and own a limited company in the UK. There are no restrictions on foreign nationals acting as company directors or shareholders, and you do not need to hold British citizenship, a UK visa, or permanent residency to incorporate a business.

This makes the UK a particularly attractive jurisdiction for overseas entrepreneurs, especially those looking to:

  • Expand their operations internationally
  • Access the UK and EU markets
  • Benefit from a respected and stable corporate structure
  • Establish a business in English-speaking territory with transparent legal standards

You can be the sole director and sole shareholder, and your company can be managed from anywhere in the world.

However, while the company formation process itself is open and accessible, there are several important compliance requirements non-residents must meet — particularly regarding:

We’ll explore each of these in more detail throughout this guide. Alternatively, you can speak to a UK company formation specialist to handle everything on your behalf and avoid common pitfalls.

What Type of Company Can a Non-Resident Form?

The most suitable and commonly used business structure for non-residents is a Private Company Limited by Shares (Ltd). This company type is ideal for individuals and businesses based outside the UK who want to establish a UK-based legal entity without relocating.

Key Benefits of a Private Limited Company (Ltd):

  • Limited liability: Your personal assets are protected. You are only liable up to the value of the shares you hold.
  • Simple and cost-effective formation: An Ltd company can be registered online within 24 hours through Companies House or via a formation agent.
  • Fully remote management: Directors and shareholders can reside anywhere in the world.
  • Strong credibility: The Ltd structure is well-recognised internationally, giving your business professional standing with UK and global clients, banks, and suppliers.
  • Flexible ownership: A single person can act as both the sole director and sole shareholder, or you can structure the company with multiple parties.

Why Not Sole Trader or LLP?

  • Sole trader: This structure is only suitable for UK residents due to HMRC registration and self-assessment tax requirements.
  • Limited Liability Partnership (LLP): While possible for non-residents, LLPs require at least two members and are primarily designed for professional partnerships (e.g. solicitors or accountants). They also carry more complex tax treatment for international partners.

For most overseas entrepreneurs, forming a private limited company is the most practical and internationally viable option. It offers the best combination of legal protection, operational flexibility, and tax efficiency.

You can read more about choosing the right structure on GOV.UK’s official Set up a business page or contact Formations Wise for tailored advice on your situation.

Legal Requirements for Non-Residents

Non-residents can register a UK limited company without restriction, but they must comply with specific statutory requirements laid out by Companies House and HMRC. These ensure transparency, traceability, and proper tax administration.

To legally form and operate a UK private limited company as a non-resident, you will need:

At least One Director

  • Every UK company must have at least one natural person (i.e. an individual) appointed as a director.
  • There is no requirement for the director to be a UK resident.
  • Directors must be at least 16 years old and not disqualified under the Company Directors Disqualification Act 1986.

A Registered Office Address (UK-based)

  • This must be a physical address located in the UK — in England, Wales, Scotland, or Northern Ireland, depending on where your company is registered.
  • It cannot be a PO Box and will appear publicly on the Companies House register.
  • You can use a registered office address service if you don’t have a physical presence in the UK.

A Service Address for Each Director

  • Directors and shareholders must provide a service address, which is where official mail from Companies House and HMRC can be sent.
  • This can be a UK or overseas address, and will also appear on the public record unless a separate director privacy service is used.

At Least One Shareholder

  • You must issue at least one share, and a minimum of one shareholder is required.
  • The same person can act as both director and shareholder.
  • There are no nationality or residency requirements for shareholders.

Additional Notes:

  • Company Secretary: Not required for private limited companies, but you can appoint one if preferred.
  • Public Record: All company officers (directors, shareholders, and PSCs – people with significant control) and addresses are visible on the Companies House register. Consider using a director service address if privacy is a concern.
  • Persons with Significant Control (PSC): You must declare who controls the company (e.g. majority shareholders). Learn more about PSC requirements.

Setting up your company correctly from the start helps avoid compliance issues and improves your credibility with UK banks, clients, and partners.

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How to Form a UK Company as a Non-Resident: Step-by-Step

Step 1: Choose Your Company Name

Use the Companies House name checker or Formations Wise Name Checker to ensure your chosen name is available and not too similar to another business.

Step 2: Appoint Directors and Shareholders

You’ll need the full name, date of birth, nationality, occupation, and service address for each director/shareholder.

Step 3: Decide on the Registered Office Address

You must provide a valid UK-based registered office address. This is where Companies House and HMRC will send legal notices. If you don’t have a UK address, you can use a registered office service provider like Formations Wise.

Step 4: Allocate Shares

Allocate at least one share per shareholder. You can have one person acting as both the sole director and shareholder.

Step 5: Choose a SIC Code

This identifies your business activity. See our guide: What is a SIC Code and Why Does Your Business Need One?

Step 6: Submit the Incorporation

You can register online through:

Once approved, you’ll receive:

  • A Certificate of Incorporation
  • Your company number (CRN)
  • Your official registration confirmation

Most incorporations are approved within 24 hours.

Do I Need a UK Business Bank Account?

It’s not legally required — but practically, it’s highly recommended.

Most UK clients and suppliers will expect payments in GBP via a UK bank. However, opening a UK business bank account as a non-resident can be difficult without proof of UK address.

Your options:

  • Use international-friendly digital banks like Airwallex, Wise Business, or Payoneer, which offer UK account details
  • Apply through UK fintech banks that support non-residents
  • Use a UK-based nominee director or business address (if necessary)

See our guide: Opening a Business Bank Account as a Non-Resident Director in the UK

What About Tax?

Even if you are not a UK resident, your UK-registered limited company will be subject to UK tax and reporting obligations. Incorporating a company in the UK establishes a legal and taxable presence within the UK, regardless of where the directors or shareholders reside.

Here are the key tax responsibilities you need to be aware of:

Corporation Tax

All UK limited companies must register for Corporation Tax with HM Revenue & Customs (HMRC) and file an annual Company Tax Return. As of 2025, the main rate of Corporation Tax is 25%, although a lower rate may apply for smaller profits under the marginal relief system.

You must register for Corporation Tax within three months of starting to trade (i.e. providing goods or services, earning income, or advertising your business).

VAT (Value Added Tax)

If your UK company’s taxable turnover exceeds the current threshold of £90,000 in any 12-month period, you are required to register for VAT. Once registered, you must:

  • Charge VAT on your sales
  • Submit quarterly VAT returns to HMRC
  • Pay any VAT owed

You may also voluntarily register below the threshold if it benefits your business (e.g. if you mainly deal with VAT-registered clients).

Annual Accounts and Confirmation Statement

Every UK limited company must file:

  • Annual accounts with Companies House
  • A confirmation statement (formerly known as the annual return), which verifies key company details such as directors, shareholders, and registered address

These filings are legally required even if your company is not actively trading (unless it is officially dormant and registered as such).

Company Tax Return (CT600)

Each financial year, your company must file a CT600 Company Tax Return with HMRC, detailing profits, expenses, and the amount of Corporation Tax due. This must be submitted even if your company has made no profit or is loss-making.

Key Consideration for Non-Resident Directors

If you are a non-resident director, you are not personally liable for UK Income Tax unless:

  • You physically perform work or services in the UK
  • You receive income from UK-based sources as an individual

However, your home country may have its own rules regarding foreign income, company ownership, or dividends. You may also be subject to local tax reporting based on Controlled Foreign Corporation (CFC) rules or foreign income declarations.

The UK has double taxation agreements (DTAs) with many countries to prevent you from being taxed twice on the same income. You can find more about this in HMRC’s double taxation treaties guidance.

For more on individual tax status, see: What is Tax Residency?

Can I Run the Business Remotely?

Yes — non-residents can run a UK company entirely from abroad. In fact, thousands of international entrepreneurs manage their UK-registered businesses without ever setting foot in the country.

The UK’s digital-first infrastructure, accessible online filing systems, and flexible company structure make it ideal for remote management. There is no legal requirement for directors or shareholders to reside in the UK or hold a UK visa, and most statutory filings can be completed online.

However, it’s essential to ensure you have the right infrastructure in place to maintain compliance and manage communications with UK authorities such as Companies House and HMRC.

Services Commonly Used by Non-Resident Company Owners:

  • UK Registered Office Address
    Required for all UK companies. This is the official address where legal and government correspondence is sent. It must be a physical UK address, not a PO box. You can use a registered office service provider, such as Formations Wise, to fulfil this requirement.
  • Mail Forwarding or Scanning Services
    Important for accessing official documents (e.g. HMRC letters, Companies House notifications) in real time, wherever you are based. Scanning services provide fast, digital access to your company’s post.
  • Director Service Addresses
    This allows directors to keep their residential address private by using a professional director service address, which appears on the public record instead.
  • Annual Filing and Tax Compliance Support
    To remain in good standing, you must file confirmation statements, annual accounts, and company tax returns on time. Many formation agents offer compliance services or can recommend trusted accountants who specialise in non-resident clients.
  • Banking and VAT Registration Assistance
    Setting up a UK business bank account as a non-resident can be complex. A specialist formation agent can assist with account opening (e.g. through digital banks or international-friendly providers like Wise Business or Airwallex), as well as with VAT registration.

Final Thoughts on Starting a Business in the UK as a Non-Resident

If you’re looking for global credibility and access to a world-leading market, setting up a UK company is a smart move — even if you live abroad. The UK offers a welcoming business environment, straightforward registration, and a clear legal structure for overseas founders.

At Formations Wise, we specialise in helping non-residents register their UK companies quickly and compliantly — with address services, filing support, and more.

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