By Ashley Preen
May 6, 2022
There were over 670,000 new businesses incorporated in the UK in the tax year of 2018/19 (source). And that doesn’t include sole traders and freelancers!
By March 2019, Companies House had over 4 million companies in the register.
Companies House reports how many company registrations belong to overseas corporate bodies with a physical presence in the UK (it was 12,241 by the end of March 2019), but we couldn’t find any information on how many companies were registered in the UK by non-residents.
Either way, the fact remains: You can absolutely and 100 per cent register and run a business as a non-resident and non-citizen of the UK.
Here are all the details:
No matter where you live or what passport you hold, you may register a business in the UK. You do, however, require a physical address inside the UK.
Official correspondence will be sent to that address.
There are a number of ways to get around this problem if you do not live in the UK, including:
Many companies that offer business registrations also provide a registered address that your company can be linked to. In Pearl Accountants’ case, we also handle any communications from HMRC directly so that any urgent tax-related questions and problems can be dealt with quickly and efficiently.
If you start a business in the UK as a non-resident, it doesn’t automatically give you the right to work in the UK. If you come from a country where you require a working VISA to work in the UK, then you will still require that VISA to work in your company inside the UK, even if the company is registered in your name.
Before Brexit, the right to work in the UK was simpler if you lived elsewhere in the EU. This is changing as of 30 June 2021.
The same applies to EU citizens who wish to reside in the UK — things were much simpler before Brexit. Check this link for further details.
It is not necessary to have a business bank account for the company if you are not a resident in the UK. Although, it is always advisable to set one up as it makes your accounting easier.
If you do decide to get a business bank account, it is possible to obtain a GBP account entirely online through a company such as TransferWise or Revolut.
Pearl Accountants is partnered with Revolut, and our clients can receive benefits if they sign up for Revolut through our website.
If you will be hiring employees, then you’re required to have Employers’ Liability Insurance. Some professions are also required to have Professional Indemnity Insurance which covers you against any liabilities incurred during the execution of the duties of your profession.
It’s a good idea to have Tax Investigation Cover because an investigation by HMRC can be crippling if you are not prepared for it, even when you are not guilty. This type of insurance doesn’t have to be expensive.
The tax investigation insurance we offer here at Pearl Accountants will cover you for up to £100,000 in legal fees, and we defend you in court as well.
As a foreign resident, you will need to pay tax on every penny you take out of the company — there is no personal allowance for foreign residents unless you have a work VISA.
The amount of tax you will pay on dividends also depends on which country you are a tax resident in — there are different tax treaties in place that alter the amount of tax you will need to pay on dividends both in the UK as well as in your country of residence.
Speak to your accountant or tax adviser for details.
As a company registered in the UK, you will need to comply with certain tax and other filing regulations each year and/or quarter. These filings are quite extensive so we’ve written a separate, detailed blog post about it, which you can read here: Filings Your Small UK Business Must Know About.
Many companies, even those set up by UK residents, leave the responsibility of these filings up to their accountants or to the company that handled their registration in the first place. This way, you can get on with business instead of being mired down in endless paperwork, and possibly even suffering a penalty as a result of missing an important filing date.
Yes, non-residents can set up a company in the UK. You need a registered address in the UK but don’t need to live here. You will need employers’ insurance if you hire employees and possibly might need other insurance policies as well. You need to know your taxes and when to file the respective paperwork — this is most easily dealt with by your accountant.
We're glad our customers are happy with our products and services. Here's what some of them said about us...
Pearl Accountants are unique as you can get. They have a great one to one service and they always answer your queries in a fast and professional manner.
I find Pearl when I opened up my limited company. I was clueless, but Pearl Accountants kindly assisted me in the best way so I felt at ease and understood how the operation works.
Everything was explained clearly in detail and I could ask as many questions as I wanted. They were never rude or impatient, just happy to be there to help.
Naila MughalDirector
The client had previously missed a few deadlines with HMRC and Companies House and needed a hands on approach
Wanted to ensure they have a proactive team so that no deadlines were missed and full end to end bookkeeping carried out
Client was introduced to a dedicated accountant who filed all outstanding accounts and appealed for any penalties by HMRC
After being in business for years, I must admit that Pearl Accountants are far the best accountants I have worked with. They are helpful, friendly and trust worthy and most of all provide excellent tax advice.
They provide high-level client care. I would certainly recommend Pearl Accountants to all.
Bobby LiddarDirectorInvoice factoring complications led client to inaccurate bookkeeping and unclear of clear reporting requirements
Processing the invoicing system accurately with clear and transparent management reporting was key
Processing the invoicing system accurately with clear and transparent management reporting was key
Pearl Accountants have been my accountants for many years and have been a great asset to my businesses. They have a strong team and knowledge is second to none. Very happy with the service and professionalism from them. Will continue to recommend them to my network.
Huzefa BharmalDirectorPaying huge taxes without any tax efficiency and lack of understanding on various VAT aspects.
Minimise tax bills and ensure the business was compliant with HMRC and Companies House
As a startup graphic design company, we ensured the client used tax allowances and efficient payroll structures to withdraw money
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Achieve a national presence and grow organically through current business model
We came on board and advised client on tailor made business strategies to achieve their online and brick and mortar presence.
We have been using Pearl Accountants for over 10 years and developed a very good business relationship. Very clear instructions with easy to follow accountancy system in place. Great expertise in tax efficiency, as well as business, grow and development services. One of the best-chartered accountants in town.
We have already recommended your services and will share our good experience with others in future.
It is always someone available on the phone but if not available at the time your accountant will always call you back.
Complete peace of mind with prompt and clear communication so no deadline missed.
Very satisfied.
Dalia SreiderieneClient was growing very fast with inability to keep track of growth with no cloud accounting setup and no integrations
Time saving on bookkeeping and clear vision of profitability management reports. Setup with cloud integrations.
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
We recently migrated to Pearl Accountants from large national accounting firm. Transfer was easy and faultless. Friendly staff at Pearl lead us through the process with ease. Initially we were drawn to their service because of their attractive pricing structure. However it quickly became apparent to us that we were getting a lot more for our money than we initially thought as they are happy to stretch the engagement to all sorts of additional advice. Thumbs up to Pearl Accountants.
Alex TrbojevichManaging DirectorNo clear strategy for business growth or tax planning reduction techniques
To achieve business advisory, tax planning and accurate reporting requirements
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
Our client, a well established practising solicitor in the UK required a headache free service to ensure their accounting requirements were met and cloud accounting solution setup
Harjap Singh BhangalDirectorToo much time was being consumed in bookkeeping and previous accountants missed various deadlines
More time was needed to focus on the business and ensure a firm came on board to take full ownership.
Advised client to forward us everything in ‘shoe box’ style and provided full breakdown regularly to keep informed.
They make me feel that I am a valued customer and to me what makes Pearl accountants unique is their helpful team of dedicated staff members. Their response is always prompt and it makes the daunting task of accounting really easy for me. Pearl Accountants is really a five-star accountant company.
Saira JafriDirectorAs a franchisee tuition business, the client did not have the right advise to reduce taxes or a proactive accountant to advise where needed
Reduction in taxes through governmental tax subsidiaries and requiring more time to focus on the business.
A dedicated accountant was assigned to ensure deadlines were not missed and review of tax strategies.
Our client was in need of a specialist contractor accountant to remain compliant and ensure they did not fall in IR35.
Client required advisory on payroll and VAT solutions and filing of accounts at year end.
Duaine Keith StewartNo clear direction on IR35 nor guidance on allowable expenses that could be claimed.
Ensure the contractor company was compliant with HMRC and Companies House and advisory on saving taxes.
Provided a full explanation and review on IR35 and guidance provided on which expenses could be claimed to reduce taxes
Our client having a property portfolio in Switzerland required a specialist accountant that understood the UK tax legislation whilst having a thorough understanding of overseas tax implications.
Marianne Comfort Overseas and UK income not declared, needed tax returns filed for previous years and appeal to HMRC for outstanding penalty
Paying taxes in the UK and overseas, wanted help understanding the tax system so avoid paying taxes twice.
Appealed successfully for prior years penalties and filed all outstanding returns. Thorough review of all tax allowances available.
Our client joined us after losing track of their finances and needed someone they could turn to for help. We came on board and reviewed their internal bookkeeping arrangements and recommended efficiency to lower their input on areas which could be outsourced to us.
Rosie AbrahamsDirectorNo real track of profitability or clear vision of expenditure along with weak internal processes.
To achieve a clear breakdown of expenditure and ensure the current setup for bookkeeping was run more efficiently.
Recommendation on reporting packs, internal processes and online applications to integrate for payment reconciliation.
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