So, you’ve got a brilliant business idea and you’ve set your sights on the British market? That’s fantastic! The United Kingdom is one of the easiest places in the world to do business, even if you aren’t currently living there. However, navigating the legal landscape can feel a bit daunting at first. If you are wondering how to open a company in UK as an expat, you have come to the right place.
In this guide, we’re going to break down the process into bite-sized chunks. We’ll skip the boring legal jargon and get straight to the practical steps you need to take to get your business up and running. Let’s dive in!
Can a Non-Resident Really Start a Business in the UK?
The short answer is: Yes, absolutely.
You do not need to be a UK resident or a UK citizen to be a director or a shareholder of a UK company. You can live anywhere in the world and still run a British Limited Company. This flexibility is exactly why so many international entrepreneurs are looking up how to open a company in UK as an expat.
However, there is a catch. While you can own the company from abroad, if you plan to physically move to the UK to run it, you will need a valid visa (like the Innovator Founder visa). But for simply registering and operating remotely? You are good to go.
Step-by-Step: How to Open a Company in UK as an Expat
Here is the roadmap to getting your Limited Company (Ltd) registered. It is surprisingly fast and digital.
1. Choose a Unique Name
Your company name cannot be the same as (or too similar to) an existing one. You can use the Companies House name availability checker to see if your idea is free. Also, avoid sensitive words unless you have permission.
2. Get a Registered Office Address
This is a requirement. You need a physical address in the UK where official mail can be sent. Since you are an expat, you likely don’t have an office in London or Manchester yet.
- The Solution: Use a virtual office service or a formation agent. They will provide a prestigious UK address for a small annual fee and forward your mail to you digitally.
3. Appoint Directors and Shareholders
To register, you need at least one director and one shareholder. The good news? You can be both. You can hold 100% of the shares and be the sole director.
4. Register with Companies House
This is the official part of learning how to open a company in UK as an expat. You can do this online directly via the UK government website. The fee is currently just £12, and in many cases, your company is approved within 24 hours.
You will need to provide:
- Memorandum of Association: A legal statement signed by all initial shareholders.
- Articles of Association: Written rules about running the company.
- SIC Code: A code that identifies what your business actually does.
The Tricky Part: Business Banking
While forming the company is easy, opening a traditional high-street bank account (like Barclays or HSBC) as a non-resident is notoriously difficult. They often require face-to-face meetings in the UK and strict proof of residency.
The Expat Hack:
Don’t stress about traditional banks. Instead, look into Fintech solutions. Platforms like Wise (formerly TransferWise), Tide, or Revolut Business are incredibly friendly to non-residents. They allow you to set up a UK business bank account (with a sort code and account number) completely online. This is a crucial tip when figuring out how to open a company in UK as an expat efficiently.
Tax Responsibilities You Can’t Ignore
Just because you are abroad doesn’t mean you can skip the tax man (HMRC). Once your company is live, you must:
- Register for Corporation Tax: You must do this within 3 months of starting business activity.
- File Annual Accounts: Even if the company is dormant, you must file accounts every year.
- File a Confirmation Statement: This confirms your company details are up to date.
- VAT Registration: Only mandatory if your turnover exceeds £85,000, though you can register voluntarily before that.
Summary
Opening a business in the UK is a strategic move that adds credibility to your brand. By following this guide on how to open a company in UK as an expat, you can bypass the confusion and focus on growth. Get your virtual address, register online for £12, grab a fintech bank account, and you are ready to trade!
