How to Register a Company in the UK as a Foreigner

Ryan Patrick

• 5 min read
How to Register a Company in the UK as a Foreigner

The United Kingdom is among the most attractive countries for registering a business abroad. Easy communication, a thriving economy, and friendly taxation create fertile growth for company growth. Moreover, you don't need to be a UK citizen or resident to register a company. You can form a company online from around the world thanks to Incorpuk. The registration process is quick and affordable, regardless of where you are.

Process of Registering a Company

The registration process starts with completing a formal application form. You can fill it yourself or hire the services of an online company formation agent. We make the registration stress-free by giving you everything you need to register a company as a UK non-resident. Our packages include assistance and professional advice throughout the process.

Here are the requirements for opening a business in the UK

  1. Pick a company name: Start picking a company name and check if it is registered. If the name is available, you can use it for your company formation, but if it's in use, modify it until it's available for registration. When choosing a company name, follow these rules:
  • The name shouldn't be similar to another business name
  • The name shouldn't include sensitive words
  • Company name mustn't be offensive
  • The name should end with the word Ltd or Limited
  • The name shouldn't contain prohibited signs, symbols, characters, or punctuation

2. Registered office address

You must have a UK address registered office address for your company. This will be your company's correspondence address in the UK for receiving official mails from Companies House, HMRC,  ICO and other government organizations. Incorpuk provides registered office address as part of our incorporation package.

3. Director information

A UK company can have one or more directors (managers), and you must provide their details. If you are the owner of the company to be incorporated by default you would be a director of the company unless you do not want to act as a director of the company. You need to provide information like

  1. Full name
  2. Date of birth: you must be 16 and over
  3. Home address This doesn't appear on the public record
  4. Service address
  5. Occupation
  6. Nationality

3. Shareholders

A shareholder means an owner. If your company is a Private Limited company you will need to be added as a shareholder of the company. A company can have one or more shareholers.

The information a shareholder must provide includes:

  1. Shareholders names
  2. Date of birth
  3. Residential address
  4. Service address
  5. Nationality

4. Document of formation

when incorporating a company, you need the article of association and memorandum of association documents. These documents are agreements of responsibilities of company owners. The document also includes the ways a company should be run. At Incorpuk we provide documents of formation including the article of association.

After having all the information required for business registration, you can now register with HMRC and Companies House.

Things you must Know when Registering a Company in the UK as a Foreigner

To avoid being caught off guard, you may have this critical information when registering a company in the UK

Have a Business Bank Account

Although a non-UK citizen doesn't need to register a company's bank account in the UK, getting one is helpful for accepting payments. Registering a UK bank account will help you avoid the costs of money movement and local trade fees. Using your domestic bank account is financially inefficient since banks have fees for international transfers. As a result, it may take away a massive amount of your company's profit. A UK bank account is advisable to help you improve your money management skills.

What bank accounts can foreigners open in the UK?

If you are a non UK resident or a foreigner that incorporates a company in the UK, you can open business bank accounts with any of the following banking options

  1. Wise: Wise business account is one of the most common banking solution option for non UK residents.
  2. Tide: Tide is another banking platform a non UK resident can open a business account.
  3. CashPlus Bank: Cashplus Bank is a full fledged bank in the UK. Non UK residents especially those residing in the EU, US, Canada, Australia and Japan can open a CashPlus bank account.
  4. Payoneer: Most people assume Payoneer to only have personal account but Payoneer actually have a company account which offers banking details in GBP, USD, Euro and a few other currencies to companies that are registered in the UK.
  5. Paysera: Paysera is another banking platform that offers business bank accounts to non UK residents who incorporates their business in the UK. Paysera requires a UK company director to first of all open a personal account and pass through the verification processes before opening a business account for a UK company. Paysera is only available to founders who are residents of the EU/EEA.

Tax Filings

Registering a company in the UK as a foreigner who does not have a resident permit in the UK means that you do not have to file personal income tax in the UK. You may need to file pay the income tax in your domestic country for every salary and dividend you earn from your UK company.

The only tax you will be required to file to the UK Government (HMRC and Companies House) as a foreigner who does not reside in the UK is your company's annual accounts also know as corporate accounts.  These tax costs can increase if you don't manage your cash well. You may need to hire an accountant to optimise your earnings.

You don't have to Register the Company Yourself

From what you read online, registering a UK company may seem straightforward, but it can be unclear especially if you are unfamiliar with UK business practices and the legal structure. Incorporating a company requires several government approvals from the Companies House and HMRC. If you don't know the registration process, you can make a mistake and get blocked or blacklisted from opening a company in the UK.

To avoid this, you may employ the services of a reputable comapany formation agency like Incorpuk.

Have Insurance after Starting to Trade in the UK

When you start trading, you need to grab insurance quickly. The insurance will be a protective measure to help your business navigate even in challenging UK market landscapes. Different industries need specific liabilities and more responsibilities than others. So, do your research and know the insurance that suits your business.

When you have insurance, you will have peace of mind knowing if anything goes wrong, you have backup. However, having business insurance for a non-British person isn't mandatory; it's vital for your company's safety.

Benefits of Running a Company in the UK as a Foreigner

Registering a company in the UK has a lot of benefits, but here are the most crucial

Access the European Market

It's easy to access the European market once you register a company in the UK. The European market is one of the largest markets in the world, with over 500 million customers. UK companies export goods and services worth over £16 billion annually to Europe, so if you seek an extensive market for your company, the UK is a great choice.

Low Taxes

Most foreign entrepreneurs choose the UK for their companies abroad because of friendly tax rates. The UK corporation tax rate is at 20%, which is slightly lower than that of most European countries. Additionally, the country offers several tax reliefs and exemptions for companies operating in different industries. This makes the UK an excellent option for a company that seeks to minimise tax liability.

Skilled Workforce

Another advantage of registering your company in the UK as a foreigner is access to a skilled workforce. More than 30 million employees work in the UK, with a significant percentage working in professional occupations, meaning companies have access to a large pool of skilled workers. Additionally, the UK has a higher employment rate for European graduates, so if you're looking for a market with educated employees, start your company in the UK.

Final Thoughts

At Incorpuk, we understand that registering a company in the UK might be difficult and daunting as a non UK resident. Incorpuk has helped thousands of foreign nationals to register a company at a friendly cost. Our agents are ready to help you anytime around the clock. Remember, our fee covers everything like registering your company with HMRC and Companies House and a business address, and we can also help you get a UK bank account.