A guide for setting up a company in the UK

Are you a foreign national looking to establish a business in the United Kingdom? We have good news for you; it is not as complicated as you may believe. The UK is one of the world's greatest economies. It has one of the greatest wealth per capita levels among the economic superpowers and ranks sixth in terms of GDP. Every entrepreneur dreams of launching a company in the UK because of the country's extremely stable economic system, extensive legal structure, and diverse consumer market.

This guide from our DNBC Financial Group’s experts will shed light on all the information about setting up a company in the UK.

A guide for setting up a company in the UK

Can you start a company in the UK if you live overseas? 

Yes. It might surprise you to learn that anyone, regardless of nationality, can open a business in the UK; the application procedure and legal requirements are the same for everyone.

The advantages of setting up a company in the UK as a foreign national

Access to European markets

One of the significant advantages of establishing a business in the United Kingdom is access to the European market. The European market, with over 500 million consumers, is one of the most enormous in the world.

Annually, UK businesses export more than £16 billion in goods and services to Europe. Setting up a company in the UK is a great way to tap into this massive market.

Expertise workforce

Another advantage of doing business in the United Kingdom is the availability of a skilled workforce. The UK employs over 30 million people, with a large ratio working in skilled occupations, providing businesses with access to a large pool of talented workers. 

Furthermore, the UK has one of the highest rates of university graduate employment in Europe. Setting up a business in the UK may be the best option if you are looking for highly educated employees.

Low taxes

The UK also has low business tax rates. The corporate tax rate is 20%, lower than in many other European countries. Furthermore, numerous tax breaks and exemptions are available to businesses operating in distinctive industries, such as R&D or environmental protection. This makes it an appealing destination for businesses seeking to reduce their tax liability.

Customer credibility 

Building trust with potential customers is essential when running a business. After all, if they don't believe you, they won't give you their money. One of the best ways to accomplish this is to register your business in the United Kingdom. This sends a strong signal that your company is legitimate and trustworthy.

However, registering your business is only the first step. You also need to make sure the address on your registration is credible. Having your company registered from a London location is one of the greatest methods to do this. A London postcode is a quick and simple approach to reassure potential clients that your business is headquartered in the UK's capital city and is, therefore, likely to be reliable and trustworthy.

Can a UK company be run on behalf of a non-resident by an agent?

Non-residents may establish and run a UK company entirely or partially through a UK business agent. An agent will charge a fee for their services, with the amount varying depending on the level of services required.

To create your agency agreement, you should use a formal contract, which will usually be supervised by UK agency laws.

Setting up a company in the UK from overseas

To start a limited company in the UK from overseas, you’ll need to:

• Choose a company name. 
• Companies House or a formations agent should be contacted to register your company.
• Complete the necessary anti-money laundering checks 
• Register your commercial address. 
• Select your board of directors and a company secretary. 
• Shareholders and shares should be assigned. 
• Your memorandum and articles of incorporation document in place at the time of incorporation.
• Register for corporate taxation.

And need to make sure you have the following:

An available company name

To structure your company, you'll need an unregistered company name. This must be a unique name that is not already in use in the UK.

A UK-registered office address

For all official mail and documentation, you will require an official address. If you are unable to be based in the UK and receive mail at a UK address, registered agent services can be extremely beneficial. You can list a prestigious London address as your company's office address with this service, and all communications will be forwarded directly to you.

Director/ Shareholder

At least one director and shareholder's full name, date of birth, nationality, and address. 

All proposed directors must be at least 16 years old and not be undisclosed bankrupt.

To establish a UK company, you do not need to have a director or shareholder who lives in the UK. Many banks, however, will require you to have resident directors or shareholders before opening a UK business bank account for your company.

Or you can open an international business account at DNBC Financial Group. Customers all over the world can open overseas accounts for business transactions. Opening an international account online allows you to bypass all geographical limitations and make global fund transfers in seconds.

Managing tax from overseas

The tax you pay as a limited company is entirely determined by your company and how it operates. As a limited company, you must pay Corporation Tax, register for VAT if your annual turnover exceeds £85,000 (unless you choose to voluntarily register), pay income tax, and possibly national insurance. When it comes to taxes, you should search for professional advice to avoid fines or penalties.

About DNBC Financial Group

As a member of the BIN Corporation Group, DNBC Financial Group was established in 2017 to serve as a financial institution. It offers digital payment, including money transfers, money remittance globally, allowing clients to use the global market ecosystem with the help of a single, dependable partner.