It is possible, and common, for people who don’t live in the United Kingdom to start up their own UK limited company. In this article, we’re going to take a look at the benefits a non-UK resident can enjoy by registering their own UK company. Let’s get started.
Financial protection with limited liability
Perhaps the biggest benefit of the limited company structure is the financial protection it provides its shareholders (these being the owners of the company). With another popular UK business model, the sole trader, there is no separation between the finances of the business and the finances of the people who own the business. If it accrues debts and runs into financial difficulties, the owners are wholly liable and will have to pay out of their own pockets.
With a limited company, the shareholders are only liable for the unpaid nominal value on the shares that they own. This total could amount to as little as £1. Put simply, with a limited company, the personal assets of the owners are protected.
A tax-efficient business model
This will depend on a case-by-case basis, but generally speaking, the limited company model represents one of the most tax-efficient structures available in the UK – especially when compared to the aforementioned sole trader model.
For example, sole traders must pay Income Tax and National Insurance. However, limited companies are required to pay Corporation Tax (on their profits), which is typically lower in comparison.
Increased trust that can lead to new business and funding
Limited companies are a globally recognised and esteemed business model. Thanks to the level of trustworthiness that the structure provides, other businesses are more likely to work with you if you are operating as a limited company. In fact, in the UK some businesses will only work with companies and will refuse to do business with other entities.
Likewise, business owners running as limited companies will find that banks and other lenders are more likely to provide funding options to them when compared to other business structures.
Exposure to UK businesses
The UK has one of the biggest economies in the world. By starting up your own limited company, you are basing your business in this thriving commercial location. This will immediately allow you to start trading with other businesses based across England, Scotland, Northern Ireland and Wales.
In 2022, just under 800,000 new companies were formed (a record year), taking the total amount of companies in the UK to over 4.5 million. Form your own company and give your business the chance to tap into this lucrative commercial market.
Opportunity to work with top talent
If you intend to set up an office in the UK, you can take advantage of the vast pool of talent that is on offer, and start building a team that can help you achieve success.
With a company, you will not only gain access to highly skilled workers from the UK, but also motivated individuals from across the globe, who have chosen to progress their careers here.
What’s more, the UK boasts one of the world’s best higher education systems. You will be ideally placed if you’re willing to work with graduates looking to take their first steps into employment.
Added consumer trust
If your business is profitable in your current location, you may be considering branching out and providing your products and services to a new set of consumers in the UK. However, gaining trust from a new audience can sometimes be tricky.
By registering a UK limited company, you can start reaching new consumers, whilst – at the same time – assuring them that your business is UK-based and operating using one of the most prestigious business structures available. In short, you’re demonstrating that you can be trusted.
A more straightforward business experience
Do you intend to trade in the UK, but as an international business? Whilst this is an option, you will encounter regulations, tariffs and legal agreements that’ll make doing business challenging.
With a UK limited company structure, you will find that the problems you will have experienced as an international business entity are either easier to navigate or non-existent. As you would expect, a UK company specialises in doing business in the UK.
Brand defence
Even if you have no interest in trading within the UK, by registering a limited company, you are taking steps to stop anyone else from piggybacking on your current business and setting up a UK version of it without your permission.
Companies House (the government body responsible for registering and dissolving companies) do not allow duplicate names to exist on the register that they maintain, nor do they allow names that are too similar to each other. This means that if you incorporate a limited company and leave it dormant, you are stopping anyone else from forming a company with your name, meaning your brand will remain protected.
Ready to register a limited company as a non-UK resident?
We can help you get your company started with our Non-Residents Packages (priced at £159.99 and £239.99). You will get everything you need to register a UK limited company, including a UK-based registered office – something you will require to register the company.
Once you have chosen between the Non-Residents and Non-Residents Plus packages (the Non-Residents Plus package includes extras such as our Full Company Secretary Service, the preparation and filing of your confirmation statement, and more), all you need to do is:
- Choose your company name
- Make payment
- Complete the quick and company registration form
Once submitted, applications are normally accepted by Companies House within 24 working hours. We will then email your company information, as well as a referral link to apply for a Wise Business Account, which will give you access to a UK sort code and account number, if your application is successful.
Thanks for reading
So there you have it, the benefits the limited company structure provides non-UK residents. We hope you have found this article useful. Please leave a comment if you have any questions.
