Can a Foreigner Start a Company in the UK?
Foreign nationals can form a UK limited company entirely online in 2025. Learn the rules, costs, visa options, taxes and step-by-step process in this practical guide
From New York, Lagos to Lisbon, Dubai to Delhi, the letters “Ltd” on a business card still open doors. But can a foreigner who is not a British citizen or even a UK resident legally register that coveted UK company? In 2025 the answer is a resounding yes.
The United Kingdom remains one of the few major economies where corporate law makes no distinction between locals and foreigners when it comes to owning or running a private limited company. At the same time, new transparency rules (most notably the Economic Crime and Corporate Transparency Act 2023, or ECCTA) have tightened identity and address requirements.
This article breaks down exactly what a foreign founder needs to do to launch a UK company. We’ll cover legal fine print, costs, visas (if you actually want to live in Britain), banking work-arounds, tax tips, and the biggest pitfalls to avoid.
1. The Short Answer
Under the Companies Act 2006, you can register a UK limited company even if you have never set foot on British soil. There is no requirement to be a UK resident, citizen or visa holder to act as a director or shareholder.
2. Why the UK Still Tops Foreign Founders’ Wish Lists
Speed & cost – Online incorporation takes as little as 24 hours. You can check our UK company incorporation packages here.
Global credibility – A UK “Ltd companies” are recognised by Amazon, Stripe, eBay, EU suppliers and most international banks.
Business-friendly law – The UK keeps red tape light and investor rights clear under the Companies Act 2006.
Double-tax treaties – More than 130 treaties slash withholding tax on dividends, royalties and management fees.
Fully digital – From incorporation to annual filings and ID verification, every step can be completed online from abroad.
3. Who Can—and Can’t—Form a Company?
- You must be 16 years old or above.
- You must have a registered office address in the UK (provided by Incorpuk)
- You must have a valid proof of ID and proof of address
- You must intend to use the business for lawful purposes.
Bottom line: where you live or what passport you hold is irrelevant; what matters is that the company itself “lives” at a bona-fide UK address and that the people behind it pass the new ID checks.
4. ECCTA 2023: The New Gatekeeper
Beginning autumn 2025, every new director and “Person with Significant Control” (anyone owning ≥25 % of shares) must verify their identity before Companies House will accept an incorporation filing. Non-verified appointments will be rejected, and an unverified director who acts anyway can face fines or disqualification.
Foreign founders have two easy routes:
GOV.UK One-Login (free) – Scan your passport, take a selfie, get a unique ID code.
Authorised Corporate Service Provider (ACSP) – Your formation agent does the KYC for roughly £15-£50.
Tip: complete verification before you press “Submit” on the incorporation form to avoid a last-minute rejection queue.
5. Visas vs. Incorporation: Know the Difference
You do not need a UK visa to own a UK company.
However, if you plan to live or work in the UK you’ll need immigration clearance. Options include:
Innovator Founder visa – For innovative business ideas endorsed by an approved body; three-year stay with potential settlement.
Self-sponsorship (Skilled Worker) – Your UK company applies for a sponsor licence and hires you as a skilled worker.
Global Talent or Scale-Up visas – For certain high-growth founders and key staff.
If you simply want a UK “Ltd” to sell online or invoice clients, no visa is required.
6. Step-by-Step: Registering Your UK Company from Abroad
| Step | Action | Pro Tips for Foreign Founders |
|---|---|---|
| 1. Pick a name | Use the Companies House name checker. | Avoid “Group”, “Holdings” or sensitive words unless you have approval. |
| 2. Secure a registered-office address | Rent a virtual-office or accountant’s address (£40-£120 p.a.). | Must be a physical UK address—no PO boxes. companieshouse.blog.gov.uk |
| 3. Draft share structure | One ordinary share of £1 is legally enough, but many founders issue 100 × £0.01. | Keep it simple; new shares can be issued later. |
| 4. Gather director/shareholder details | Full name, DOB, nationality, residential + service addresses. | Supply a separate service address to keep your home address private. |
| 5. Verify identity | Via One-Login or ACSP. | Do this before step 6 once ECCTA takes effect. |
| 6. File the IN01 application | Online via WebFiling (£12) or through a formation agent bundle. | Agents reduce typos—and rejections—that slow non-resident filings. |
| 7. Pay the fee | Card from any country accepted online. | Same-day processing is £50 (plus agent surcharge). |
| 8. Receive Certificate of Incorporation | Usually within 24 hours (digital PDF). | Save copies; banks and marketplaces will ask for them. |
7. Cost & Timeline Snapshot
| Item | Typical cost | When paid |
|---|---|---|
| Companies House online fee | £12 | At filing |
| Formation-agent bundle (address, mail-scan, ID check) | £50-£120 | Upfront |
| Same-day processing (optional) | £38 surcharge | At filing |
| Annual registered-office renewal | £40-£120 | Yearly |
| Confirmation Statement filing | £13 (DIY) | Yearly |
| Accountant (micro-accounts + tax) | £50-£100 p.m. | Monthly |
With the paperwork ready, many foreigners go from zero to active company in one business day.
8. Banking: The Fintech Work-Around
High-street banks such as HSBC or Barclays tend to demand at least one UK-resident director present in-branch. Fintechs don’t:
Wise Business – Multi-currency IBANs; open fully online; ideal for e-commerce payouts.
Revolut Business – GBP & EUR accounts with cards and app-to-app transfers.
Airwallex / Tide – Popular with marketplace sellers; straightforward remote KYC.
Apply as soon as your incorporation PDF lands; fintech onboarding can still take a week.
9. Taxes & Ongoing Compliance
9.1 Corporation Tax Residence
UK companies normally pay 25 % on profits over £250k, or 19 % on profits up to £50k.
However, HMRC looks at where “central management and control” takes place. If the board meets exclusively in Dubai, the company could be treated as non-UK-resident for tax. You’d escape UK corporation tax but might trigger liability in your home country—so get professional advice.
9.2 VAT
The compulsory VAT-registration threshold rose to £90,000 on 1 April 2024.
Note: non-established taxable persons (NETPs) must register for VAT from their first sale in the UK, regardless of turnover.
9.3 Annual Filings
| Filing | Deadline | Penalties |
|---|---|---|
| Confirmation Statement | Within 14 days of anniversary | Company at risk of strike-off |
| Annual Accounts | 9 months after year-end | £150–£1,500 sliding fines |
| Corporation Tax Return | 12 months after year-end | £100-£1,000 + interest |
Miss them and Companies House can dissolve the company, freezing UK bank funds.
10. Common Pitfalls (and How to Dodge Them)
Using a PO-box – Automatically rejected after March 2024. Rent a compliant virtual office.
Skipping ID verification – From autumn 2025 your filing will bounce and you could be fined.
Bank-account paralysis – Start fintech onboarding immediately; high-street queues are months long for non-residents.
Ignoring home-country reporting – Brazil’s CBE return or India’s ODI forms may require you to declare offshore shareholdings.
Assuming “Ltd” means no UK taxes – Corporate residence and permanent-establishment rules still bite if you sell or hold stock in Britain.
11. Frequently Asked Questions
Q1. Can I be the only director and shareholder?
Yes. UK law permits one person to fill every statutory role.
Q2. Will my personal address appear online?
Only if you list it as your service address. Use a separate UK service address to keep your home location private.
Q3. Do I need a UK phone number?
No. Companies House filings don’t ask for phone numbers. Some fintech banks may, but most accept foreign numbers with SMS.
Q4. How long does ID verification take?
The One-Login app usually approves within minutes if your passport scan is clear; agent-led checks depend on their queue but typically 24-48 hours.
Q5. Can I convert my “Ltd” into an LLP later?
Yes, by forming the LLP and transferring assets/contracts, but you cannot simply “re-stamp” the existing company.
12. Conclusion: A foreigner can start a company in the UK
In 2025 the United Kingdom still rolls out the red carpet for foreigners and overseas entrepreneurs but with a sharper eye on who’s walking it. If you can upload a passport photo, rent a legitimate UK address and keep your filings on schedule, you can run a successful UK company as a foreigner.
Whether your goal is to impress investors, access EU markets, or simply separate international revenues from personal funds, a UK “Ltd” remains one of the fastest, cheapest and most respected ways to do it.
So gather your docs, pick a company name, and click “Incorporate.” London (or at least Companies House in Cardiff) is open for your business—no boarding pass required.
Disclaimer: This guide is for general information only and should not be taken as tax, legal, or immigration advice. Always consult qualified professionals for your specific circumstances.