Establishing a business presence in the United Kingdom offers significant opportunities, but navigating the regulatory landscape requires careful planning and understanding of key requirements. From directorship considerations and new identity verification mandates to securing essential banking services and understanding your tax obligations, there are several critical factors that can determine your venture’s success. This article addresses the fundamental questions every overseas entrepreneur faces when setting up operations in the UK, helping ensure your business launch proceeds smoothly.
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Do we need a UK resident Director?
It is not a legal requirement to have a UK resident director. That said, it is something we would usually recommend, because it can help when applying for things like business bank accounts, financing or funding.
It is important to note that while the Directors do not necessarily have to be resident in the UK, they do still need to meet the requirements of the UK Companies Act, rather than any directorship requirements set by the country in which the directors are resident or located.
Identity verification requirements
From Autumn 2025, all directors and persons with significant control (PSCs) will be required to complete mandatory identity verification with Companies House. This new requirement, introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), is particularly important for overseas directors and PSCs to understand, as the standard Companies House verification methods may not be suitable for non-UK residents.
The direct verification process requires UK forms of ID or a biometric passport, and Post Office verification is only available to those with a UK home address. For overseas directors and PSCs who cannot use these methods, verification can be completed through an Authorised Corporate Service Provider (ACSP) such as accountants, solicitors, or company formation agents.
This ACSP option accepts passports without biometric chips and certain non-UK documents, making it accessible to individuals from any country. Our guide on mandatory Companies House identity verification explains all the available options and what overseas business owners need to know about the verification process.
How do we get a UK bank account?
Your UK company will need to be registered with Companies House before you can apply for a bank account. Depending on the bank being applied to, this application process can be done either online or in branch. The bank will require various pieces of information covering the group structure, set-up information and various AML (Anti-Money Laundering) and KYC (Know Your Client) items. While not always required, it can be very helpful to a UK Resident director for these purposes, as some banks have stricter requirements than others.
Can we have a virtual office?
There are some service providers who will offer a Virtual Office service. You would need to do some research as to whether this is the best option for your business, as costs can grow quickly.
However, in terms of registering your business, you must provide an ‘appropriate’ registered office address, at which correspondence addressed to the company may be sent and received. This cannot be a PO Box address, and to meet the appropriateness test it must be reasonable to expect that items sent there will come to the attention of the directors. It must also be possible to receive acknowledgement of delivery at that address. The registered address is visible to the public, on the Companies House register.
Lastly, the registered address must be in the same part of the UK you’ve registered the business in (e.g. if you have registered the business in England, the address must also be in England. It cannot be a Scottish or Welsh address).
At what point do we have to pay taxes and VAT?
Typically, there are three main taxes to be considered depending on the trade and activities of the business.
- PAYE – this is linked to the UK Payroll when the company employs and pays staff. A business needs to register a PAYE scheme the month before they are planning to process payroll and pay employees.
- VAT – linked to taxable sales. In the UK, a business needs to register for VAT if it is making taxable sales of greater than £90,000 on a rolling 12-month basis. If making taxable sales, it can also voluntarily register for VAT at any point before hitting £90,000, if they wish to do so.
- Corporation Tax – to be filed after the business has completed its first financial year. A business will receive a UTR (Unique Taxpayers Reference) shortly after incorporation which will enable filings with HMRC. Typically, this is prepared alongside the company’s financial statements at the year-end. The main rate of Corporation Tax is 25%.
Need help setting up your UK business?
Our Company Secretarial Services team specialises in helping overseas businesses establish compliant UK operations. From Companies House filings to ongoing compliance support, we’ll handle the regulatory requirements whilst you focus on growing your venture.
Contact our Company Secretarial Services team to get started.
