For many cross-border sellers, registration of limited company in the UK has become a basic step to access the European market and build brand credibility. The good news? The process is straightforward. Most applicants can complete the forms in just 20–30 minutes, and registration is typically done within 3–5 working days—all online, with no need to travel to the UK or inject any paid-up capital.
However, "simple" doesn’t mean careless. Errors in address, documents, or VAT can lead to fines, missed letters, or even dissolution. With new UK rules in 2024–2025 on ID checks, tax, and reporting, compliance matters more than ever. This 2025 guide to company registration in UK for non residents offers practical tips to help you register correctly.
When should you register a UK company?
Company registration in the UK before diving into the process, ask yourself: Do I really need one? If any of the five situations below apply to you, setting up a UK entity is likely worth it:
You sell through your own website
If you're using your own platform (like Shoplazza, WooCommerce, etc.) to sell directly to UK consumers:
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For goods worth £135 or less, you must register a UK company and collect VAT at the point of sale.
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For goods over £135, you’re seen as the importer of record and must handle import VAT and duties.
In this case, a UK entity helps you manage customs clearance and logistics more smoothly.
You sell on third-party platforms
Even when using marketplaces like Amazon, eBay, or TikTok Shop, certain scenarios may require a UK company. HMRC evaluates several factors, where the goods are located, their value, and whether the buyer is VAT-registered, to determine who’s responsible for VAT and whether a UK entity is needed.
| Goods Location |
Buyer Type |
Goods Value |
VAT Responsibility |
UK Entity Needed? |
| UK (domestic) |
VAT-registered UK business (B2B) |
Any |
Seller (treated as importer) |
✅ Yes – must register and file VAT |
| Outside UK |
Consumer (B2C) or business (B2B) |
> £135 |
Seller (treated as importer) |
✅ Yes – must register for VAT and handle duties |
| UK (domestic) |
Consumer / Non-VAT business (B2C) |
Any |
Marketplace (e.g., Amazon, eBay) |
❌ No – unless storing goods in UK |
| Outside UK |
Any |
≤ £135 |
Marketplace handles VAT |
❌ No registration required |
| Outside UK |
VAT-registered UK business (B2B) |
≤ £135 |
Buyer applies reverse charge |
❌ No registration required |
You store inventory in the UK
If you're using UK-based warehouses (such as Amazon FBA or 3PLs), company registration becomes mandatory, regardless of your revenue.
You offer digital services
Selling digital products to UK consumers, like eBooks, software, or online courses, requires VAT collection (usually 20%) and may trigger a need for a UK entity for VAT filings.
You want better trust and payment access
A UK company allows you to open multi-currency accounts, connect with local payment providers (like Stripe UK), and improve buyer trust and conversion. It also supports smoother settlement and repatriation of profits from the UK and EU markets.
How a UK entity supports your global business?
For foreign sellers, a local company in the UK often comes down to three things: global credibility, legal stability, and a business-friendly attitude toward overseas entities. These are well-known advantages, but what do they actually mean in the context of cross-border eCommerce? Let’s break it down.
Low or no tax liability for cross-border sellers
Cross-border sellers who register a UK company but don’t operate physical business locally can enjoy substantial tax savings, even legal zero tax in some cases. Typical situations include:
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The company is registered in the UK but has no local office, employees, or warehouse.
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Goods are shipped directly from China mainland, Hong Kong, or other countries, with transactions and fulfillment occurring outside the UK.
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The company has a UK presence but annual sales remain below the £90,000 VAT registration threshold (2024/25).
Such companies can often be declared “dormant” with HMRC, avoiding local taxes and reducing accounting fees—though annual financial reports must still be submitted.
Once the company starts trading in the UK and sales reach or exceed £90,000, VAT registration and payments become mandatory. VAT rates include:
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Standard rate: 20% (applies to most goods and services)
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Reduced rate: 5% (e.g., children’s car seats, home energy)
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Zero rate: 0% (e.g., food, printed books, children’s clothing)
Quarterly VAT “nil returns” apply if there are no sales or all sales ship from overseas. Using EU warehouses such as FBA requires regular VAT filings.
In addition to VAT, UK companies must also pay corporation tax based on their profits. Unlike some countries that only tax local income, the UK applies corporation tax to worldwide profits, including both trading income and capital gains.
As of the 2023/24 tax year, the rate structure is as follows:
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Profits up to £50,000: 19%
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Profits between £50,001 and £250,000: taxed at a marginal rate
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Profits over £250,000: 25%
The UK has double taxation treaties with over 100 countries, allowing businesses to avoid double taxation and reduce global tax burdens.
➡️ Official UK Tax Info: https://www.gov.uk/corporation-tax-rates
Flexible multi-currency accounts
UK companies offer flexible account management for non-residents. With a UK entity, you can open multi-currency bank accounts overseas without complex approvals or foreign exchange restrictions. This allows funds to move freely in and out.
For cross-border sellers, this brings key advantages:
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Receive payments in multiple currencies (USD, EUR, GBP), reduce transaction costs and improve convenience.
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Pay global suppliers directly without extra approvals or declarations.
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Repatriate profits efficiently to your home country, improving cash flow.
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Minimize losses from exchange rate fluctuations and avoid long-term capital lock-up abroad.
Compared to countries with strict capital controls, the UK offers a high level of financial freedom, making it a strong base for global eCommerce operations.
Free trade and smooth import/export
The UK operates as a free trade market with efficient customs clearance, most cross-border goods are released within 24 hours. If you're selling on Amazon UK/EU, eBay UK, or TikTok Shop UK, you’ll find that registering and operating through a UK company is often faster and smoother than in many other countries.
For brand-owned websites, a UK company and business address (along with using a UK IP address) can help unlock key services like Stripe payments, PayPal verification, and international shipping channels, boosting both your store’s credibility and customer trust.
Low entry barriers and maintenance costs
UK company registration requires no paid-up capital. You only need to declare an amount (e.g. £1,000) during setup, with no need to deposit it into a bank account. Besides, ongoing maintenance is also cost-effective:
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Filing the annual Confirmation Statement online costs £34 (£62 by post)
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Annual tax returns can be submitted using templates—no mandatory audit
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Accounting services are relatively affordable, ideal for early-stage businesses
➡️ Annual filing guide and fees：https://www.gov.uk/guidance/confirmation-statement-guidance
Which company type is best for non-UK residents?
For foreign sellers and non-UK residents, the most suitable option is usually the Private Limited Company (Ltd). When it comes to the registration of limited company in UK, this structure offers the best balance of simplicity, compliance, and flexibility:
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No paid-up capital required (recommended to declare £1,000 or more—£1 is allowed, but may affect bank account approval)
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Fast and simple registration process (typically completed in 1–2 days)
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Strong corporate reputation and easier access to UK bank accounts
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Eligible for VAT and EORI registration, essential for platform access and customs clearance
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Subject to corporate tax, allowing for efficient and compliant profit distribution and tax planning
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Only one shareholder and one director required (no nationality restrictions; individuals must be 16+ years old)
For most sellers looking to enter the UK or EU market, a Ltd company is the go-to structure.
Here’s a quick comparison of other types you may come across:
| Company Type |
Suitable for Non-UK Residents? |
Summary |
| Private Limited Company (Ltd) |
✅ Recommended |
Most common choice. Easy setup, limited liability, clear tax structure—ideal for eCommerce. |
| Sole Trader |
❌ Not Recommended |
No separate legal identity. Unlimited liability. Less flexible for cross-border business. |
| Public Limited Company (PLC) |
❌ Not Recommended |
Requires £50,000 paid-up capital and two directors. Better suited for large or listed companies. |
| Limited Liability Partnership (LLP) |
⚠️ In Special Cases |
Typically used for professional services (e.g. law or accounting firms); offers tax transparency. |
| Hybrid Structures (e.g. LLP + Ltd) |
⚠️ Complex |
Used by advanced sellers for tax planning. Higher compliance complexity—requires expert guidance. |
What company registration document UK needed before you start
The process is straightforward, but to ensure a smooth process, make sure you’ve prepared all the required information and documents in advance.
Choose a company name
The name must be in English and cannot include other characters. It also must not duplicate any existing company names listed in the Companies House database.
Additionally, avoid using sensitive words that imply connections to the royal family (e.g., Royal, King, Queen, Prince), government (e.g., Government, British, Britain), or certain social organizations (e.g., Charity, Organization, University) unless you have special permission.
For private limited companies, the name must end with “Limited” or “Ltd.” Both carry the same legal meaning, differing only in presentation.
To prevent registration failure due to name conflicts, it’s recommended to use the Companies House online tool to check name availability in advance and prepare 2–3 alternative names.
➡️ Companies House：https://find-and-update.company-information.service.gov.uk/company-name-availability
Directors, shareholders, and persons with significant control (Psc)
A UK company must have at least one director and one shareholder, with ID documents like a passport or ID card needed for verification. Directors hold legal responsibility for daily operations and compliance.
You also need to declare Persons with Significant Control (PSC)—those who:
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Own more than 25% of shares
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Hold over 25% of voting rights
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Can appoint or remove most directors
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Otherwise exercise significant influence or control
From April 8, 2025, identity verification is voluntary but will become mandatory in autumn 2025. At that point:
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New directors and PSCs must verify identity
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Existing ones get 12 months to comply
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Non-compliance risks fines, filing restrictions, and bans on registering new companies
Preparing ID documents ahead of time and monitoring updates from Companies House is highly recommended.
➡️ PSC Guideline：https://www.gov.uk/guidance/people-with-significant-control-pscs
Business type and scope (SIC codes)
When registering a UK company, you must provide at least one Standard Industrial Classification (SIC) code to describe your primary business activity. The UK does not impose specific restrictions on business scope — any lawful activity is permitted.
It’s recommended to consult the official SIC code list and choose the code that best matches your main business. If your operations are more diverse, you can include multiple relevant SIC codes to reflect your full business model. The correct SIC code is important not only for a smooth registration process but also because it influences future tax filings and regulatory classification.
➡️ SIC Code List：https://resources.companieshouse.gov.uk/sic/
Memorandum and articles of association
The company’s constitution is a key legal requirement during registration and typically includes:
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Memorandum of Association: A legal statement in which all founding shareholders agree to form the company and become its members. Once the company is incorporated, this document generally cannot be amended.
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Articles of Association: The internal rulebook that governs how the company is run, including decision-making processes, directors’ duties, share issuance and transfers, and profit distribution. You can use the Model Articles provided by Companies House, which suit most private limited companies, or have custom articles drafted to meet specific needs (usually with professional legal advice).
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Statement of Capital: For private limited companies, this outlines the company’s total share capital, share classes, nominal value of each share, and the rights attached to them.
Company registration address in the UK
Every company formed in the UK must provide a statutory registered office address within the country to receive official correspondence from the government, notaries, and legal authorities. Key requirements include:
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Must be a real physical address, P.O. Boxes are not accepted.
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The address must be located in the same jurisdiction as the company registration (e.g., if incorporated in Scotland, the address must also be in Scotland).
Most cross-border sellers choose to register in England & Wales due to simpler procedures and the ability to complete the process fully online without being physically present. You can either:
In other words, you can simply submit the required documents from your home country, while a professional service provider handles the UK company’s registered office and secretary. Unlike in the US, using a UK formation agent is optional and you can still choose to register the company yourself.
For cross-border e-commerce, you don't have to rent an expensive physical office. A virtual office or registered agent address is typically sufficient, though it comes with annual costs:
A virtual office, typically, helps remain your personal home address (for directors and shareholders) private, as Companies House records are public. A dedicated registered office helps reduce exposure risk while keeping your company fully compliant.
UK company registration process and key considerations
Once you’ve prepared all the required documents and information, the process of setting up a private limited company in the UK can be completed efficiently. However, to ensure a smooth registration and full compliance with the latest 2025 regulations, cross-border e-commerce sellers should pay close attention to the following detailed steps and important considerations.
➡️ Register Website：https://www.gov.uk/limited-company-formation/register-your-company
➡️ Offcial Registration Guide：https://www.gov.uk/set-up-limited-company
➡️ Key Notes：https://www.gov.uk/government/publications/overseas-companies-in-the-uk-registration-filing-and-disclosure-obligations/overseas-companies-registered-in-the-uk
Step 1: Submit your registration application
The first step is to submit your company registration application. You may fill in the prepared information in the order required by the official process. There are two main methods:
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Online submission: The most convenient and recommended option, with a fee of £50. Online applications are usually processed within 24–48 hours, and in some cases, in under 24 hours. During registration, your company is normally enrolled for Corporation Tax automatically, unless you choose to set it up as “dormant.” You’ll also need to create a separate Government Gateway user ID and password for the company, which is different from your personal account.
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Postal submission: You can submit the IN01 form by post, with a fee of £71. Processing is slower, typically taking 8–10 working days.
For most cross-border e-commerce sellers, the online method is faster, simpler, and more efficient.
➡️ OS IN01：https://www.gov.uk/government/publications/register-a-uk-establishment-of-an-overseas-company-os-in01
➡️ Cost List for Company Registration：https://www.gov.uk/government/publications/companies-house-fees/companies-house-fees
Step 2: Director and PSC identity verification (Mandatory from 2025)
Starting in 2025, all newly appointed directors and Persons with Significant Control (PSC) must complete identity verification to ensure compliance. There are two main verification methods:
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Direct verification via GOV.UK One Login: Use the GOV.UK One Login service to upload valid ID documents such as passports or driving licenses. The process may also require photo uploads or facial recognition for strict security.
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Verification through an Authorized Company Service Provider (ACSP): Alternatively, a regulated ACSP, such as a professional formation agent, accountant, or law firm, can verify your identity on your behalf. ACSPs comply with anti-money laundering (AML) regulations and have been registered with Companies House since March 18, 2025. Their verification standards are equivalent to the official GOV.UK process.
Once verification is complete, a unique code will be generated. Keep this code safe, as it may be needed when submitting company documents later.
➡️ GOV.UK：https://www.gov.uk/
Step 3: Receive registration documents
After your UK company registration is complete, you will typically receive the following documents to confirm the company’s legal establishment and authorize business operations:
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Certificate of Incorporation issued by Companies House (usually electronic, showing company name, registration number, and incorporation date)
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Company registration application form IN01 (including submitted company details, like directors, shareholders, and registered address)
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Four standard copies of the company’s constitutional documents (Articles of Association)
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Share certificates to record share allocations
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Company’s official signature and seal stamps
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Statutory registers, including registers of shareholders, directors, and meeting minutes
📌 Practical reminder: You should ensure all information in your registration and subsequent documents is accurate and genuine. For example, proof of address must be an original document issued within the last three months and clearly legible. If your company structure includes corporate shareholders, you’ll need to provide registration documents and Ultimate Beneficial Owner (UBO) details for each layer. Any omissions or errors may cause delays or rejection, affecting registration speed and business launch.
Post-registration compliance and annual maintenance
Registration is just the beginning. To ensure ongoing compliance, UK companies must complete several follow-up tasks on time. Here are three key steps to address promptly after successful registration:
Tax registration (HMRC)
Once done, HMRC (Her Majesty’s Revenue and Customs) will automatically assign a Unique Taxpayer Reference (UTR) for Corporation Tax filing. Even if your company has no income or operates at a loss, you must file a nil return to avoid penalties.
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Filing deadline: Within 12 months after the end of your accounting period (e.g., April 1 to March 31 is a common choice).
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Payment deadline: Within 9 months and 1 day after the accounting period ends.
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Tax return submission: Use HMRC’s online tax portal (Government Gateway) to complete and file the CT600 form (Corporation Tax Return).
➡️ Online Tax Service：https://www.gov.uk/log-in-register-hmrc-online-services
As your business grows, you may also need to register for VAT. If your taxable turnover reaches or exceeds £90,000 (the 2025 threshold), or if you are an overseas seller supplying goods in the UK triggering VAT obligations, registration and periodic VAT filing with HMRC is mandatory.
From 2025 onwards, all VAT-registered companies must comply with Making Tax Digital (MTD) regulations, which require using MTD-compatible software to keep records and submit VAT returns online.
Most companies file VAT returns quarterly—every three months—with deadlines falling 1 month and 7 days after the quarter ends. For example, for the April to June quarter, the filing deadline is August 7.
➡️ VAT Register：https://www.gov.uk/register-for-vat
Annual maintenance
After registering a UK company, two key annual obligations must be completed to stay compliant and avoid penalties:
✅ Confirmation Statement
From March 4, 2024, companies must provide an official registered email address (not publicly disclosed) and declare that their activities are lawful (Statement of Lawful Purpose). Every company must submit a confirmation statement to Companies House at least once a year to update or confirm company details such as directors, shareholders, and registered address.
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Deadline: No later than 14 days after the company’s anniversary or the last statement submission.
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Late consequences: Fines ranging from £150 to £1,500; severe cases may lead to compulsory strike-off.
✅ Annual Accounts
All companies, including dormant ones, must file annual financial statements. For first-time filings, accounts are due within 21 months of incorporation. Subsequent filings must be submitted within 9 months of the company’s Accounting Reference Date (ARD).
📌 New regulations effective April 1, 2027: All accounts (including dormant) must be filed via commercial software; traditional online and paper filing will be discontinued.
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Small and micro-entities can no longer file filleted or abridged accounts.
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Micro-entities must submit copies of the balance sheet and profit & loss statement.
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Small companies (not micro-entities) must file balance sheets, directors’ reports, audit reports (unless exempt), and profit & loss statements.
Create a bank account
If your cross-border business is just starting and you only need a UK company to set up a store or register on platforms, a local bank account isn’t always necessary. You can use international payment platforms like Stripe or PayPal, which support multi-currency transactions and allow withdrawals to overseas accounts, ideal for early-stage businesses or sellers who cannot open a local account yet. Alternatively, digital banks such as Tide, Revolut, and Airwallex cater well to non-residents with simpler online applications and lower fees.
However, as your business grows, especially if you handle larger transactions, integrate with UK-based suppliers, or need to register and pay UK VAT, having a UK bank account becomes crucial. It boosts credibility and streamlines VAT payments, refunds, corporate tax, and client settlements.
Yet, opening an account as a non-resident faces several challenges:
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Strict anti-money laundering (AML) rules require banks to conduct detailed identity and background checks (KYC/KYB) to prevent financial crime.
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Some banks require at least one UK-resident director.
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In-person visits may be mandatory for non-resident directors to submit documents or attend interviews, increasing time and travel costs.
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FCA regulations limit banks willing to open accounts for non-residents, reducing options and features.
Despite these hurdles, banks like HSBC, Barclays, and CMB offer online appointment booking and remote application processes to simplify account opening. Typically, banks require the following documents for company account opening:
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Valid ID for all directors and major shareholders (passport, UK driver’s license, or national ID)
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Proof of address (bank statements, utility bills with name and address)
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Proof of funds source (bank statements, invoices, loan agreements)
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Certificate of Incorporation and documents (Memorandum and Articles of Association)
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Business plan (including business model, market analysis, and financial forecasts)
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PSC statement listing individuals or entities with significant control over the company
Note: Foreign documents usually require certified translation and notarization to meet compliance standards.
What's more, you should plan your bank account early, prioritize digital banks friendly to non-residents, or seek professional agency support. If a local account is unattainable, assess the impact on operations like payments, VAT refunds, and collections, and prepare alternative solutions accordingly.
Common pitfalls to avoid during registration
Many sellers overlook crucial details when registering a UK company, leading to operational issues, fines, or even company dissolution. Watch out for these common mistakes and tips:
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Avoid “free virtual addresses”: Many free registered addresses lack reliable mail forwarding. Some sellers missed official annual review notices, resulting in £150 fines for late submission. Opt for a paid Registered Office Service or trustworthy local providers to ensure official mail from HMRC and Companies House is received.
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Don’t randomly fill in share capital: While £1 is the legal minimum, banks may view this as high risk and reject accounts. Experience shows declaring £100 to £1000 as share capital improves bank approval chances without needing actual payment upfront.
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Avoid falsely declaring the company as dormant: HMRC can impose fines up to 200% of annual profits if a “dormant” company is found trading—an extremely risky move.
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Never use personal accounts for company income: All business revenue must go through the company account. Personal bank cards risks being treated as personal income by tax authorities, leading to back taxes and penalties.
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Submit the Confirmation Statement on time: Missing this annual filing results in fines and, if ignored long enough, compulsory company strike-off—even if business is active.
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Don’t underestimate VAT obligations: Many cross-border sellers assume the £90,000 VAT registration threshold applies universally. In reality, having stock in the UK or selling directly to UK consumers triggers immediate VAT registration requirements.
Conclusion
Company registration in UK for non residents is relatively straightforward, but ongoing tax compliance and maintenance are equally important. Whether you’re a new cross-border seller or an established overseas brand, careful planning and following regulations ensure smooth growth and stable cash flow. This guide helps clarify the process, organize your paperwork, and avoid common pitfalls. Registration is just the start—compliance is key for long-term success.
(This article is for reference and learning purposes only and does not constitute legal or professional advice. For your specific situation, consult qualified local lawyers or agents for expert guidance.)