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How to Register a Limited Company as a Non-UK Resident

Limited Company as non UK resident

Why do businessmen decide to open a company in the UK? Everyone has their reasons for this. Some seek to create a prestigious business that can be run around the world on behalf of a British company that has one of the most significant reputations in the world. It is also a great option for business owners who want to enter the UK market with goods or services. Obtaining a British trademark is another important reason.

In addition, it is possible to work without pressure from the state and other interested parties. When resolving disputable commercial issues, it is possible to apply to English arbitration if the company is registered in Britain. Everyone has their reasons because this is really a smart decision for business development. Yet, today’s question is: can a non-uk resident form a uk limited company? Let’s find answers!

How to register a company in England?

In order to register a company you need to contact an official Agent. He will register your company, as he knows all the local laws, and will help with the choice of company form (Ltd or LLP). Our specialist will hold a free consultation and will tell you all the pros and cons of each form of business. This is a very important step at the beginning of the business, as later on you will not be able to change the form of ownership.

By the way, the Hoxton Mix is always ready to help business owners introduce their goods and services to the British market. They have an in-depth knowledge of the market and understand how to properly develop your business.

What do I need to know about opening a company in the UK?

By incorporating a company in England, entrepreneurs gain a favourable platform for business development in what is known as the “mid-shore.” This jurisdiction serves as an intermediary between countries with regular tax regimes and classic offshore locations. The unique tax and corporate legislation of England offers options for tax savings, particularly when establishing a partnership or generating income outside the country.

It’s important to note that using the term “offshore” in relation to a non-resident company in the UK is figurative and not accurate. England is not considered an offshore location.

The benefits of registering a company in the UK are numerous, including a streamlined and transparent documentation process that can be completed online. Entrepreneurs also have access to state support and tax incentives and can take advantage of the country’s well-developed infrastructure and skilled workforce for business growth on any scale.

The UK boasts a strong corporate culture that supports private enterprise, especially for small and medium-sized businesses. Registering a firm in the UK establishes trust with counterparties and regulatory authorities in various jurisdictions. Additionally, the country’s thriving market in finance, IT, development, and other sectors offers ample opportunities for commercial activity.

Despite the UK’s recent exit from the EU (Brexit), the country’s economic stability and business climate remain unaffected. The borderless market for goods and services in the UK provides ample opportunities for business growth, making it an attractive destination for entrepreneurs.

What types of companies can I open in the UK?

The United Kingdom has a diverse range of organisational and legal forms (OPFs) available for conducting business, including joint stock companies, public companies, private companies, and partnerships.

It’s worth noting that according to the experts at the Hoxton Mix, many beginning entrepreneurs find that creating a private company limited by shares (LTD) is often the most suitable choice, as it can address most of their needs. In certain cases, a partnership may also be a viable option for business development.

The decision on which OPF to choose depends on the personal preferences of the business owner and the specific requirements of the commercial activity. The expert team at Hoxton Mix provides essential information on the advantages and disadvantages of different business entities in the UK, allowing entrepreneurs to make informed decisions.

Regardless of the chosen OPF, it’s important to note that British law requires regular submission of reports to supervisory authorities and conducting audits for compliance.

Now, let’s take a look at the general characteristics of the common organisational and legal forms of business in England.

Registration of a limited company in the UK

So, how can a non-uk resident form a uk limited company? One popular option is to establish a Private Company Limited by Shares (LTD), which combines the benefits of a limited liability company and a joint stock company and is commonly used for various legal businesses in England.

Have a look at some essential characteristics of an LTD:

  1. Formation of an LTD in England can be done by one or more participants.
  2. There is no specific requirement for the size of authorised capital.
  3. The owner’s liability for business obligations is limited to their investment in the company or the company’s guarantees.
  4. Unlike other forms of business organisation, the pecuniary liability of participants in an LTD is limited by the value of their unpaid shares, rather than the number of contributions to the authorised capital. Each participant (shareholder) owns a specific number of shares.
  5. There are no restrictions on citizenship or residence for owners and directors. The same person can serve as both the owner and director of the company.
  6. The company is subject to taxation on all profits.
  7. Regular submission of reports is required.

Forming an LTD can be a cost-effective and flexible option for non-UK residents looking to establish a business presence in England.

Conclusion

There are numerous reasons why entrepreneurs choose to establish their companies in the UK. For some, it’s about creating a globally recognised business that carries the esteemed reputation of being associated with a British company. For others, it’s a strategic move to enter the lucrative UK market with their products or services. Obtaining a British trademark is also a compelling motivation for a non-UK resident to form a UK limited company.

Moreover, operating a business in the UK allows for independence from state interference and other stakeholders. In case of any commercial disputes, British arbitration can be sought for resolution, provided the company is registered in the UK. The flexibility and advantages of the British business environment cater to different motivations, making it a wise decision for fostering business growth.

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