How to set up a non-resident UK company remotely
Authored by visadb.io
Table of Contents:
- Is it possible to register a company in the United Kingdom as a non-resident or non-citizen?
- What are the requirements to register a company in the United Kingdom as a non-resident?
- How long does the registration process take?
- What compliance do you have to follow as a non-UK resident company holder in the UK?
- How long does it take until I can start getting paid by my contractors?
- Were there any changes after Brexit?
- Do I have to pay any corporation tax to the UK government if I make business outside the UK with non-UK clients?
- How much tax do I pay if my client is residing in the United Kingdom?
- What is the recommended structure to register a business in the UK?
- What is the cost to register a United Kingdom company?
There are many options that digital nomads and remote entrepreneurs choose for registering their company. Amongst the most popular such as US LLC or e-residency, a non-resident UK Company is also a great choice.
We had an incredible session with Tõnis Jõgeva from 1Office UK about how to set up a non-resident UK company remotely.
Here you can find 10 questions about this company registration process:
Is it possible to register a company in the United Kingdom as a non-resident or non-citizen?
According to the jurisdiction, the United Kingdom does not restrict foreigners from establishing a company, so you can be from any country. However, it is important that you check if these requirements have changed.
What are the requirements to register a company in the United Kingdom as a non-resident?
You need a local address if you register the business, and an ID which can be a passport or a European ID card. If you don’t want to rent the physical office, you can hire a service provider to help you get an address.
How long does the registration process take?
You have to put in your company name, the activity goals that you plan to do and so on. It takes approximately an hour or even less. Then, after three days, the company’s house (the government registry) processes the submission, and you become a UK company holder.
What compliance do you have to follow as a non-UK resident company holder in the UK?
To have the company running, you need to do annual reporting on your transactions. It costs 40 pounds per year.
The accountant dates your bank statements, allocate them to the balance sheet like assets and then this is submitted to the government. Your business year starts the day you open the company, but the first time you file you have one year and seven months to comply with your filing.
How long does it take until I can start getting paid by my contractors?
You might want to have a separate bank account for the business, but it is not mandatory. At most, it will take one week from your registration day when you can start receiving payments.
Were there any changes after Brexit?
The UK government still kept the VAT ID (Value-Added Tax). When you apply for it, you have to do monthly or quarterly reporting: you can choose.
VAT usually is necessary when you do sales to Europe or you do sales in the United Kingdom, but if your customers are actually
non-european or from outside of Europe or the UK, you do not need to register for the VAT.
The obligation to apply for a VAT number is when you have 83,000 pounds worth of turnover in one year in the UK or in Europe.
Do I have to pay any corporation tax to the UK government if I make business outside the UK with non-UK clients?
It is explicitly said in the tax code of the UK that you only pay the corporate tax that you actually earn from doing business in the UK.
But if, for instance, you are managing the company from Canada and the customer is from China, the money goes through the vessel in the UK, then this is not money or profit generated in the country and you are not eligible for the tax.
How much tax do I pay if my client is residing in the United Kingdom?
You need to pay 19% Corporate Tax.
What is the recommended structure to register a business in the UK?
With Ltd, you can do business with anyone in the world: private entities, European and non-European.
What is the cost to register a United Kingdom company?
It costs from 15 to 30 dollars.
We hope this FAQ help you get started with registering a business in the United Kingdom as a non-resident. Do not hesitate to reach out Tonis to clear your doubt
AI Bookkeeping for Small Businesses [Complete Guide 2024]
This guide explains how AI helps small businesses manage and optimize bookkeeping, the benefits, the disadvantages of traditional bookkeeping and AI tools.
Paraguay Tax Residency Complete Guide 2024
How to get Paraguay tax residency, temporary and permanent residence in Paraguay in 2024 as a digital nomad or expat, a complete fiscal and immigration guide.
What is a Tax Residency and Why it is Important
We explore what is a Tax Residency and Why it is Important for digital nomads, expats, and remote entrepreneurs to have one.
5 Key Facts About Paraguay Tax Residency
Here are 5 Key Facts About Paraguay Tax Residency and how digital nomads and remote entrepreneurs can benefit from this tax set up.