You may feel like setting up a UK company is too much of a challenge. But if you break it down, the task is very doable.
Here we’ll take a look at the actions you need to take to set up a company in the UK as smoothly as possible — if you’re not from the UK. You can ask for help from a competent professional and compare company formation packages to accommodate your needs better.
Can Non-UK Residents Form a Company in the UK?
The UK has a number of advantages for non-UK residents. For example, there aren’t any minimum capital requirements to set up a company. However, it’s essential to have the facts clear from the start: a non-UK resident can form a company here in the UK.
Steps to Forming a Company
The first thing you’ll likely do is make a business plan. This can take some time, but once you have that all sorted out, you can proceed to the following steps to set up in the UK:
1. Register the Name of the Company
You can use a play of your own name or anything else for the company title. But it is imperative that the name for your company must be unique. Make sure that your chosen name is not in use by anyone else.
2. Register an Office Address in the UK
A company registered in the UK must have an office address in the UK. You can use a PO Box for mail, but you still need to provide a physical address and a postcode within the UK. Please note that a company’s address is a matter of public record. Therefore, it will be available on the online registry.
3. Nominate a Director of Your Company
Choose someone over 16 who can handle running the company, even if it is in a purely nominal sense. Your chosen director doesn’t have to be a UK resident.
4. Issue Shares in the Company
If you want to create a company using shares, you need at least one shareholder. This can be the director(s) or any number of people. In addition, you can specify the value of the share.
5. Issue a Memorandum of Association (MoA)
A Memorandum of Association (MoA) is a legal document prepared during a company’s formation and registration process to define its relationship with shareholders. In addition, it specifies the objectives for which the company is formed.
6. Register Your Company
You can easily make online registration for a small fee if you have everything complete in the list above. A professional company formation specialist can also help you set everything you need. You have the option to register your company via post, but that may take longer.
7. Register for Your Corporation Tax
You can register online for the corporation tax and pay-as-you-earn tax simultaneously as your company’s registration. However, make sure not to delay your company’s registration for corporate tax more than 3 months after formation. The registration process will take some time as you need to have a Unique Tax Reference posted to your company address before you complete registration.
8. File for Your Confirmation Statement
Every limited company or LLP in the UK must file a confirmation statement once a year. The confirmation statement provides the government with current information on a company’s registered official address, company officers, SIC codes, shareholders, share capital and all the people with significant control (PSC).
Note: Please remember that you also need a UK bank account for the company. Don’t worry! An agent can help you set it up without much trouble.
When forming your own company, there are many complex considerations to take into account. Ultimately, finding the right choice for you is a matter of weighing up each option’s costs and benefits.