Here’s a summary of the requirements and steps for a non-resident to register a business in the UK, including visa options and the possibility of bringing family members to work there.
1. Non-Resident Company Registration
A non-UK resident can register a business in the UK, typically as a private limited company (Ltd). There’s no requirement to be a UK resident or visit the UK to complete the registration process. However, the business must have a UK-registered office address, which can be arranged through virtual or service address providers if the director has no physical presence in the UK. Only one director is required to register the company, and this person can also serve as the sole shareholder. The director must be over 16 years old.
Required documents include:
- Company name and registered address
- Details of directors and shareholders
- Standard Industrial Classification (SIC) code, which defines the business activity
- Memorandum and Articles of Association, which outline the company’s governance rules
Once registered, the business must meet UK tax obligations with HMRC, including corporation tax and potentially VAT if the annual turnover exceeds the threshold. Accounting support is advisable to ensure compliance with ongoing tax and reporting requirements.
2. Visa Requirements for Visiting the UK
The director can apply for a UK Standard Visitor Visa to attend business meetings, conferences, or to oversee business activities. This visa usually allows short stays (up to six months per visit) and does not permit active work or long-term employment in the UK. If the director intends to stay longer for operational involvement, the Innovator Visa or Start-up Visa might be more suitable, as they provide a pathway to stay and work if the business qualifies under specific criteria, such as being innovative and endorsed by an approved UK body.
3. Bringing Family Members
If the director plans to move to the UK under a work-oriented visa like the Innovator Visa, dependents (spouse/partner and children) may apply to join. Family members can work in the UK if granted dependent visas, allowing them to participate in the business or seek employment elsewhere. For a Standard Visitor Visa, family members can accompany on separate applications but would have similar restrictions on working in the UK.
4. Additional Information
Banking: Opening a UK business bank account can be challenging for non-residents. Many banks require a UK address and identification, although some banks and online banking services offer solutions for international businesses.
Taxation: Non-resident directors are typically taxed only on UK-sourced income, with no obligations under IR35 regulations if the business and director operate largely from outside the UK.
Professional Support: Many formation agencies offer services to handle the registration, tax setup, and office address requirements, often enabling a fast and efficient setup.
These steps enable non-residents to establish and manage a UK business without residency, but visa requirements will vary depending on the level of physical presence desired in the UK.
For more details on business formation, contact Elistere Accounting Services Ltd now.
5. Registration Cost
Companies House Registration Fee: This is the fee for registering a business with Companies House. As of May 1, 2024, Companies House registration fees in the UK have increased under the new Economic Crime and Corporate Transparency Act. The standard digital incorporation fee is now £50, while paper submissions have risen to £71. The same-day registration option, available via software, costs £78. The digital filing of the confirmation statement has also increased to £34, with the paper version at £62, a notable hike from previous fees. This fee covers issuing a Certificate of Incorporation. Fees are updated regularly by the Companies House you should confirm these from their website.
Registered Office Address Service: Since a UK address is mandatory, non-residents often use a registered office service provider. This can cost between £20 to £150 annually, depending on the provider and location (e.g., a London address is often more expensive)
In addition to these registration costs, ongoing financial obligations will include costs for professional services, such as accountancy fees. These can vary but typically include services for bookkeeping, filing annual accounts, tax compliance, and VAT registration (if applicable), the cost could increase with more complex accounting requirements and the size of transactions the company manages.
Corporation Tax Registration with HMRC: There is no fee for registering for Corporation Tax, but filing accounts annually is required.
6. Accounting and Compliance Fees
Using an accountant helps ensure accurate financial reporting and compliance with HMRC and Companies House. Common costs include:
Annual Accounting Services: This covers services like preparing and submitting annual accounts, Corporation Tax returns, and bookkeeping support.
Monthly Bookkeeping: For companies with more frequent transactions, monthly bookkeeping fees can vary depending on the transaction volume and complexity of the accounts.
Payroll Services: If the company employs staff (or pays the director), payroll management costs will be incurred
