Starting a UK Limited company as a foreigner - things to know.

If I am setting up a company in the U.K, do I have to be a UK citizen or have a UK residency visa?

No. You don't need to be a UK citizen or visa holder to found and run a UK company. It can be done online and then operated totally remotely without the need to ever set foot in the UK. As a non-UK/EU/EEA citizen, you'd only need a visa is if you plan to work in the UK.

Can I found a UK Limited company myself - is it easy?

You can do it yourself if you don't mind some basic paperwork. The UK government have tried to make it was easy as possible (see this guide).

The general process is as follows:

Pick a name for your business, check it's not taken and check it doesn't break any of the various naming rules in the UK (you can't be calling yourself 'Royal' anything for example.

Companies need to designate at least one director. That will probably be you.

Companies also need to designate at least one shareholder and the number of shares available in the company. Again, it will probably be you, but it doesn't have to be only you - it could be multiple people. Other companies (including ones you own) can be shareholders - they don't have to be UK companies. Speak to an accountant if you're unsure how to structure things.

Every business needs a memorandum and articles of association. If the company is just for you, you can probably just use the template ones the government provide.

Finally, you register with a government body called "Companies House". You fill in a form, pay £12 and wait (usually) about 24 hours for your company to be registered. When it is, you'll receive a nice certificate by email.

Congrats, you now own a UK Limited company!

Should I use a registration company / agent to found my company?

If the above seems confusing, or you just want someone else to take care of things, then you can use a formation agent.

Google "forming a UK company" and you'll find plenty of options. Many have different packages with lots of extras to justify the price - remember a lot of the stuff is just fluff and is either a) not needed, b) overvalued or c) something you can get or do yourself for less (or free).

How do I get a UK business bank account from abroad?

It's a little tougher to get a UK business bank account if you don't live in the UK, but not impossible. This article rounds up some options, but to summarise:

Some of the major banks like Lloyds, HSBC and Barclays have business accounts tailored to directors not living in the UK. Their are typically some hoops to jump through.

Mobile challenger banks like Revolut, Tide, TransferWise and Monese can usually offer you a UK business bank account so long as you're re somewhere in the EU/EEA.

How can I get a registered address for my UK business if I live abroad?

Both the company and each director will need a registered address that's in the UK (they can be the same). It needs to be somewhere mail can be sent so just giving them any old address won't work.

If you don't own or have access to an address in the UK, there are plenty of companies that will offer you one for a fee. Google "uk business registered address". If you retain and accountant, they might offer this service as well.

When it comes to your mail, most will offer to scan and forward any government and tax office letters to you as part of their standard fee, and then charge extra to scan (or even physically forward) other types of post to you.

Will I need to pay UK taxes or file a UK tax return

As a director of a UK company you'll be required to file a personal self assessment tax return every year. This can be done yourself or by an accountant on your behalf. This is in addition to the various filings your company will need to do.

As for paying tax, it's a complicated subject, but typically if you are not resident in the UK, you won't pay any taxes on your earnings there (but you still need to file that tax return). Instead its very likely that the country you are resident in will expect you to pay tax on your worldwide earnings there.

Again - it's complicated - so it's best to get advice from a UK accountant and from one where you live.

Remember to register with the Information Commissioner's Office

Any business handling personal data (even saving someones's email address in your Google Contacts counts), needs to register and pay a yearly data protection fee.

You can register here. The cost is usually £40 or £60 per year depending on what your business does, and you get a £5 discount if you pay by direct debit.