There is no legal requirement for the director of a UK company to reside or base themselves in the UK. In fact, they do not even need to be British nationals. The same applies to company secretaries, shareholders, and People with Significant Control (PSCs). However, there are certain eligibility rules for UK company directors and geographical requirements for UK companies, which we will explore below.
Who can be a director of a UK company?
All limited companies in the UK must have at least one director who is a ‘natural person’ (section 155 of the Companies Act 2006). This term refers to an individual, as opposed to a ‘legal person’ like another limited company or some other corporate body. To be eligible to be a company director, a ‘natural person’ must:
- be at least 16 years old: “A person may not be appointed a director of a company unless he has attained the age of 16 years.” (section 157 Companies Act)
- not be a disqualified director
- not be an undischarged bankrupt
- not be an auditor of the company
There are currently no rules in the Companies Act 2006 or any other UK legislation requiring a UK company director to reside in the UK or visit at any time. Similarly, there is nothing to preclude a foreign national from acting as a director of a UK company, whether they live in the UK or elsewhere.
What are the geographical requirements for UK companies?
Registered office address
All UK companies must be registered with Companies House and have a registered office address in England, Wales, Scotland, or Northern Ireland. The address must be a real, physical postal address where official correspondence (e.g., letters from Companies House) can be received.
In practice, many companies use the address of a company formation agent as their registered office address because it creates an impressive corporate image and helps to protect the privacy of the people who own and run the business.
Business bank accounts
There is no requirement for UK-based companies to have a UK bank account to trade. But a UK bank account is highly recommended to facilitate smooth business transactions with British clients and customers and make access to finance more straightforward. Using a non-UK bank account to trade in the UK will generally result in various transaction fees and costs for currency conversion, etc.
A registered office address alone is usually insufficient for overseas directors to open a UK bank account. Normally at least one of the company directors will need to be UK based to open a UK business bank account, but the policies of different banks may vary in this regard, so it’s worth checking.
Rapid Formations offers a free business banking solution for overseas customers as part of our exclusive Non-Residents Package. Please see below for more information.
Tax
Any non-UK-based company directors may still be liable to pay Income Tax in the UK, even if they only visit the UK temporarily. This may be in addition to income tax in their country of residence, subject to double taxation rules. We also advise appointing an accountant for expert advice and guidance on managing your tax affairs.
Our Non-Residents Packages
Rapid Formations provides two non-resident packages from £99.99, designed for overseas people who wish to register a limited company in the UK.
Our exclusive packages include a complete business presence in Central London with a Covent Garden registered office and business address, a service address, a WISE business bank account, VAT registration, a free .co.uk and .com domain name, and our Full Company Secretary Service (free for 12 months – worth £149.99), which provides you with an appointed company secretary to take care of your company, the filing of your first Confirmation Statement, and much more.
Our Non-Residents Plus Package also includes a Telephone Answering Service (free for 12 months – worth £359.99), including a choice of UK business telephone number, PAYE registration, and 4 hours of meeting room hire in central London (worth £280.00).
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
Join The Discussion