How to set up a UK company from overseas
Setting up a UK company or running a company in the United Kingdom remains a popular route for entrepreneurs who live abroad but want access to a stable legal system, deep capital markets and a world-class professional services sector. Over the 2023/24 financial year, Companies House logged 890,684 new incorporations – up 11.2% on the year before (Companies House, 2024) – and a growing share of those filings were made by owners with non-UK addresses. At the same time, the private-sector business population stood at 5.5 million at the start of 2024 (ONS, 2024), underscoring the UK’s enduring appeal as a commercial base.
If you wish to set up a UK company from overseas, you will need to make early decisions on legal structure, tax residence, directorship and compliance – and those decisions can shape your tax burden and cashflow for years. This blog distils what we at RPGCC see in practice when overseas founders approach the UK market.
We tend to focus on limited companies, because that is by far the most common format for outward-looking businesses, but we also flag where alternative structures may work better. You will finish with clear, actionable steps and a sense of where our team can lighten the administrative load.
How to set up a UK company from overseas – choosing the right legal structure
For most overseas entrepreneurs, the choice is between:
- Private company limited by shares: Offers limited liability, is quick to form, and supports outside investment; profits are taxed in the company before dividends reach shareholders.
- Limited liability partnership (LLP): Tax-transparent and flexible on profit sharing, but needs at least two members and faces slightly heavier disclosure.
- UK establishment of an overseas company: Sometimes called a branch. Simpler than a subsidiary, yet the foreign parent remains liable and UK authorities will look through to overseas accounts.
In almost every case you can form the entity online in less than 24 hours. The cost is low, but mistakes at this stage – such as using a residential address that later needs to remain private – can be expensive to undo.
Key tax considerations when setting up a UK company from overseas
- Corporation tax: From 1 April 2025, the main rate stays at 25%, with a small-profits rate of 19% for profits up to £50,000 and marginal relief to £250,000. Overseas-owned companies benefit from the same rates.
- Permanent establishment: If management and control remain abroad you may avoid UK corporation tax, but HMRC applies substance tests. A nominal UK director rarely suffices.
- Withholding taxes: The UK generally levies 0% on dividends, but interest and royalties can carry 20% unless a treaty reduces the rate.
- Indirect taxes: The VAT registration threshold is £90,000 taxable turnover in a rolling 12-month period. Many overseas e-commerce businesses register voluntarily to reclaim UK input VAT.
- Employment taxes: Pay As You Earn (PAYE) and National Insurance must be operated from the first UK salary payment.
HMRC collected a record £858 billion in 2024/25, with business taxes contributing roughly 10% (HMRC, 2025). That appetite for revenue means compliance errors are more visible than ever.
Set up a UK company from overseas – directors’ duties and verification
If you set up a UK company UK company directors – whether resident or overseas – must:
- File an annual confirmation statement.
- Submit annual accounts (or micro-entity accounts).
- Keep statutory registers that identify people with significant control.
- Comply with anti-money-laundering and identity-verification rules introduced by the Economic Crime and Corporate Transparency Act 2023.
A non-resident director can sign digitally, but Companies House will require identity verification through an approved provider. We handle this process for many of our overseas clients.
Opening a UK bank account
High-street banks often ask non-resident owners to travel to the UK for biometric checks, so factor lead times into your cashflow planning. Fintech challengers can be faster but may limit higher-risk sectors. We maintain relationships with both traditional banks and e-money institutions and can introduce you once KYC packs are ready.
Hiring staff and sponsoring visas
If you have set up a UK company and your company is set to employ overseas nationals in the UK you must first obtain a sponsor licence. Current Home Office processing times run at eight weeks, though a paid fast-track is available. Once licensed, you can issue Certificates of Sponsorship and apply for Skilled Worker visas.
Ready to set up a UK company, practical checklist: First 90 days
- Company formation: Incorporation documents, Articles of Association, share allotments.
- Registrations: Corporation tax, VAT (if needed), PAYE, Construction Industry Scheme if relevant.
- Set up bookkeeping: Choose digital software that is Making Tax Digital compliant.
- Open bank account: Prepare certified ID, proof of address, business plan.
- Insurances: Employers’ liability is mandatory if you hire anyone.
- Governance: Board minutes, PSC register, service contracts.
Do you wish to set up a UK company from Overseas?
This is how RPGCC supports overseas business owners
If you wish to set up a UK company, we can help. We combine City of London technical depth with partner-led service. Typical support packages include:
- Incorporation and registered office: We have a London EC2 address with daily post scanning.
- Ongoing compliance: Accounts, corporation tax and VAT filings prepared under a fixed-fee agreement.
- Outsourced finance function: Bookkeeping, monthly management reports and real-time cashflow dashboards.
- Advisory: Transfer pricing, treaty relief, R&D tax credits, exit planning.
Ready to set up your UK company?
If you are ready to set up a UK company from overseas it is easier when you follow the steps above and surround yourself with advisers who work daily with non-resident owners. Setting up a UK company from overseas demands clear decisions on structure, tax residence and regulatory filings, but the process needn’t absorb your time or distract you from growth. We translate UK regulations into plain-English checklists, project-manage each filing, and stay beside you once the company is live.
If you are ready to move forward with the set up of a UK company from overseas – or simply want a second opinion on your expansion plan – contact us today. We will arrange a free initial meeting with a member of our team.
If you wish to set up a UK company and require assistance with company formation and director identification you might find this article interesting and helpful as it sets out changes recently announced in the UK.
