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The United Kingdom is known for its rich and diverse market, making it an attractive country to foreign entrepreneurs. In addition to its market, the UK has structured regulations that make company registration for residents and non-residents simple and quick.
While it may seem complex and challenging especially for foreign entrepreneurs since they are not conversant with the local corporate regulations, UK ltd company formation agents can help and guide entrepreneurs promptly and ensure an effortless transition of new businesses into the UK market.
This makes it less challenging, but how easy is it really? This guide will highlight everything you need to know about starting a company in the UK as a non-resident.
An overview of starting a company in the UK as a non-resident
Both UK and non-UK residents can act as directors and shareholders of a UK limited company and explore the UK market without a need of actually being in the UK. There is no need for you to travel to the UK to start the business, you can virtually start and register a company in the UK and operate it from the comfort of your home.
If you are located abroad and want a UK-limited company, you can register the business directly with Companies House from their website or use a company formation agent like BusinAssist to help you set up a business..
Whether you need to travel to the UK or not solely depends on your business requirements and not the registration itself. You must apply for the correct visa if you plan to visit the UK. To mention just a few, the types of visas include:
· Business visitor visa, which allows a sixth-month stay in the UK
· Startup visa
· Innovator visas
· UK expansion visa
The application for the visas may take a while or even be rejected leading to spending more time and money which can be avoided by using a UK virtual office to register your company. With technology advancing gradually, virtual offices have made it easier for entrepreneurs to tap into the global market with ease.
Registered companies in the UK must provide a registered office address that aligns with the requirements of the Companies Act 2006 at the point of the registration process. According to the Companies Act 2006, the registered address has to be ‘appropriate’ meaning, it has to be a physical location within the jurisdiction where the company is being registered and be able to receive and acknowledge official correspondence.
But now I don’t live in the UK, what am I supposed to do? You may ask. This is where virtual office service can help you get a professional UK business address that can be used as a registered office address for a UK company.
Additionally, directors will need to provide a service address for their official correspondence. While there is no legal requirement for the service address to be a UK address, it is important to note that the address will be made available to the public on Companies House register which anyone can have access to. Directors can use a virtual office address as their service address to keep their residential address private. Some company formation agents like BusinAssist offer virtual office packages that come with a professional business address that can be used as a registered office address and directors’ service address eliminating the need to purchase two addresses or pay anything extra.
But what happens to my mail? This can be a concern for many non-resident entrepreneurs since they are physically not located in the UK to directly receive their official correspondence. Virtual office service providers like BusinAssist also offer professional business addresses that come with additional services like mail handling. This means, your mail will be received on your company’s behalf by the virtual office service provider, who will notify you via email. After the notification, you can choose how you want to receive the mail, either through scanning and then sending it to your email or forwarding the mail to your designated address.
Another question many may ask themselves is; Can a non-resident be a director of a UK company? There is no legal requirement for a director to be a UK resident while forming the company. So, non-resident entrepreneurs do not have to stress about looking for directors who are UK residents unless it’s their desire.
Now that you have understood the nitty-gritty of starting a business in the UK, let us explore the step-by-step process of forming a company as a non-resident.
How to start a UK company as a non-resident?
We have seen that you can start a business in the UK while located abroad or overseas. The steps below will seamlessly help you incorporate a limited company and operate it wherever you are. There are two methods you can use to register your business:
Through the Companies House website
To incorporate directly through the Companies House website, you must research all requirements beforehand. It is important to ensure that all requirements are accurate and up-to-date so that the application is not rejected.
All you have to do is go to the official Companies House website: https://www.gov.uk/government/organisations/companies-house and create an account with a valid email address.
Once the account is created, navigate to ‘Register a company” where you will provide company details, pay the registration fee, and submit. The approval may take 24 hours and once successful, you will receive a confirmation and a company registration number.
Through company formation agents
This is an easier and hassle-free method, especially for non-residents. Company formation agents will make the process simple since they will handle all the paperwork and communications with Companies House on your behalf.
Company formation agents are a one-stop shop with all company incorporation solutions, which are essential for non-residents. They have a virtual office service that comes with various business addresses which you can use as a registered office address and directors’ service address.
Steps to follow as part of the registration process include:
Company name
Your company name should be unique, distinct, and descriptive. It should describe what your business is all about. The name should not be the same or similar to existing names. Use the Companies House name availability checker to see if your proposed name is available.
There are restrictions on the names you choose for your company which include:
· Limited companies’ names must end with ‘Ltd’ or ‘Limited’. Companies in Wales’s name must end with ‘Cyfyngedig’ or ‘Cyf’
· Must be unique
· Should not be offensive
· Should not be insensitive or use any sensitive words or expression without permission
· Cannot suggest a connection with the government or a public authority
Register a UK address
Your company must have a registered office address which should be physical and located in the same jurisdiction where your company is registered. If you choose to use a UK virtual office, choose an address where your company will be registered.
Business activities
This is the activity that your business will be carrying out in the UK. Every business activity is identified by the Standard Industrial Classification (SIC) code. The five-digit code describes the nature of the business making it easier for the government and agencies to identify and categorise the main business activities of your company.
Submit company director(s) information
A limited company in the UK must have at least one human director who is at least 16 years old and above. There is no limit on the number of directors a company should have. The director should not be disqualified from acting as a director or has undischarged bankruptcy.
Submit shareholder(s) information
The company must also have at least one shareholder who can also be the director. If there is only one shareholder, they’ll own 100% of the company. There’s no maximum number of shareholders a company can have.
Complete Memorandum of Association
All initial shareholders of the company must sign the Memorandum of Association to show that they agree to form the company. The MoA is a legal document that outlines a company’s constitution, scope of operations, and relationship with the stakeholders.
Complete Articles of Association
This document contains written rules and responsibilities of directors, shareholders, and the board of directors. It also outlines the rights and power to vote in a meeting, when the meeting will be held, the sharing of shares and dividends, and many more.
After providing all details you can submit your application to Companies House for their review and further processing. Companies House may take up to 1 to 2 working days to process an application once submitted to them depending on their workload.
To conclude, non-residents can comfortably start a business in the UK. With the Companies House website and company formation agents, forming a company is easy and seamless. As long as you have all the required information to incorporate a company in the UK, the registration process is just a walk in the park.
While many company formation agents offer non-resident packages for incorporating a company in the UK, BusinAssist offers affordable and non-distinguishable packages for both UK and non-UK residents. This means that what UK residents pay is what non-residents will pay to register a company.
For more information on company formation with BusinAssist, contact them at info@businassist.com.
