Can a Non-UK Resident Set Up a Company in the UK? Here's Everything You Need to Know

If you're living outside the United Kingdom and wondering whether it's possible to set up a UK company, the answer is simple: Yes, you can!

Thousands of entrepreneurs from all over the world choose to incorporate a UK limited company each year, even though they don’t live there. Whether you're a freelancer in Dubai, a tech founder in Nigeria, or an e-commerce seller in Brazil, the UK offers one of the most accessible and business-friendly environments in the world regardless of where you’re located.

But while it's completely legal and relatively straightforward, there are some important things to consider. In this article, we’ll walk you through everything you need to know about forming a UK company as a non-resident — including legal requirements, taxes, registered office rules, and how to open a bank account.

Why Non-Residents Choose the UK for Company Formation

Let’s start with the “why.” There are plenty of good reasons to set up a UK company, even if you live abroad:

• Reputation and trust – UK companies are globally recognized, and the “Ltd” label brings credibility to your brand.
• Simple setup – You can incorporate your company online in as little as 24 hours.
• Low cost – You can register a company for as little as £12 through the official government website, or around £30–£100 via formation agents.
• No residency requirements – The UK does not require directors or shareholders to be UK citizens or residents.
• Tax advantages – The UK has one of the largest tax treaty networks in the world, which can help reduce double taxation.

Whether you're trying to enter UK/EU markets, open merchant accounts, or appear more professional to clients, incorporating in the UK can be a smart move.

Can a Non-UK Resident Really Own a UK Company?

Yes. UK law allows non-residents to form, own, and manage a private limited company. There's no requirement for you to be a UK citizen or to even set foot in the country.

Here are the key points:

• You don’t need to be a UK resident to be a director or shareholder.
• You can own 100% of the shares.
• You can be the only person in the company — acting as both director and shareholder.

That said, you do need to meet a few requirements during the setup process, such as providing a UK-based registered office address and verifying your identity.

What Are the Legal Requirements?

To successfully register a UK limited company as a non-resident, you’ll need the following:

1. A Unique Company Name

Your company name must not be identical or too similar to an existing UK company. You can check name availability on the Companies House name search tool.

2. At Least One Director

The director must be at least 16 years old and a real person (not another company). As a non-resident, you can be the director.

3. At Least One Shareholder

This can be the same person as the director. This means you can own and run the business entirely on your own.

4. A UK Registered Office Address

This is the official address where all legal correspondence is sent. It must be a physical address in the UK (England, Wales, Scotland, or Northern Ireland) and not a PO box.

If you live abroad, you can rent a registered office address from a company formation agent or a UK-based virtual office provider. These services usually cost between £50 and £120 per year. We offer registered office address as part of our incorporation packages.

5. Identity Verification (From 2025)

Due to the UK’s new Economic Crime and Corporate Transparency Act, all directors and people with significant control must verify their identity before or shortly after incorporation. This can be done using the UK government’s ID app or through a formation agent who is registered as an "Authorised Corporate Service Provider (ACSP)."

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

Here’s a simple walkthrough of the process:

Step 1: Choose a Company Name

Make sure it’s available and doesn’t contain any restricted or sensitive words. You can check for your company name availability here

Step 2: Decide on Your Company Structure

Most non-residents go with a Private Company Limited by Shares (Ltd) because it offers limited liability and is easy to manage.

Step 3: Secure a UK Registered Office Address

You can purchase this from a formation agency or virtual office provider. Some also offer services to scan and forward your mail.

Step 4: Appoint Directors and Shareholders

Fill in the necessary personal details. You’ll need your full legal name, nationality, date of birth, and an address (your residential address won't be made public if you provide a separate service address).

Step 5: Submit Your Application

You can do this directly on the Companies House website or through a company formation agent. Using an agent is often easier and includes extras like digital documents and ID verification support.

Step 6: Receive Your Certificate of Incorporation

Once approved (usually within 1 business day), you’ll receive your certificate and company number as well as other incorporation documents. Congratulations — your UK company is now officially active!

What About Business Banking?

Opening a business bank account in the UK as a non-resident used to be tricky — and still can be, depending on the bank. High-street banks like Barclays and HSBC typically require at least one UK-resident director.

But don’t worry  - fintech banks are much more flexible and are even more preferred to traditional banks by UK residents and citizens due to their rapid flexibility in international fund transfer and modern online business demands. They are also accepted by payment gateways including PayPal, Stripe, Shopify Payments and lots more.

Popular online options include:

• Wise Business
• Revolut Business
• Airwallex
• Payoneer
• Tide (some restrictions for non-residents)

These bank accounts are also often easier to open, support multiple currencies, and are accepted by HMRC and marketplaces like Amazon and Shopify.

Tax Considerations for Non-UK Residents

Here’s where things get a bit more technical but it’s important.

Corporate Tax

UK companies are subject to UK Corporation Tax on their profits, currently set at 25% (as of 2025). However, the location where your company is managed and controlled can affect whether it's considered UK tax resident.

If you manage the business entirely from abroad (for example, in the UAE or Brazil), the company might not be considered UK tax resident, depending on how it operates. That said, this can get complicated, and tax treaties can also impact your obligations.

VAT (Value Added Tax)

If your UK business earns more than £90,000 per year in taxable turnover, you must register for VAT. If you're selling goods or digital services to UK customers, you may want to register voluntarily even below that threshold to reclaim VAT on business expenses.

Personal Tax

You, as a non-resident director or shareholder, usually don’t have to pay UK personal income tax unless you work physically in the UK or receive salary from the company that is taxable in the UK.

Always consult with a UK accountant or international tax advisor for your specific case.

Common Mistakes to Avoid

1. Using your home address as the company address – It will be publicly visible online. Always use a service address if privacy matters.
2. Forgetting your tax filing obligations – You still need to file annual accounts and Confirmation Statements.
3. Not verifying your identity – From late 2025 onwards, ID verification is mandatory.
4. Assuming tax doesn’t apply – You may still have obligations in the UK and your home country.
5. Delaying your bank account – Apply as soon as your company is formed to avoid cash flow delays.
   

FAQs

Can I be the only director and shareholder?

Yes, you can be the sole owner and operator of your UK company.

Do I need a UK visa or residence permit?

No. UK immigration status is not required for company formation.

Will my company appear in public records?

Yes. Your name, company address, and certain details will appear on Companies House. However, you can use a service address to keep your home address private.

Can I open a Stripe or PayPal account?

Yes, once your company is formed and you have a business bank account, you can set up accounts with Stripe, PayPal, Amazon Seller Central, and more.

Final Thoughts

Forming a UK company as a non-resident is not only legal but  increasingly common and relatively simple. The UK remains one of the world’s most open, trusted, and cost-effective places to incorporate a business, even if you live on the other side of the world.

With a little planning  and possibly help from a formation agent, you can get your business up and running in just a few days. And from there, you can scale it globally.

So if you’re a non-UK resident thinking of starting a UK company, don’t let geography stop you. The UK company formation process is built with global entrepreneurs in mind and it’s never been easier to get started.

Need help forming your UK company? Let us know so  we can guide you through the best formation agents, help you choose the right structure, and even assist with digital banking.