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Questions and answers



How long does it take to register a company in the UK?


A company is usually registered within approximately 1-2 working days from the submission of the application. If the application is submitted late in the day or on a non-working day, the company will be registered on the next working day.


What are the benefits of a UK company if I live in another country?


This depends on individual circumstances. Firstly, operating as a British entity may be viewed favourably by clients.


Secondly, the procedures of the UK tax authority are often more lenient than those in other jurisdictions. In practice, tax audits of small companies are rare.

Thirdly, a UK company is typically outside the jurisdiction of legal systems in other countries. This also applies to its bank account.


Finally, individuals interested in transferring property rights (including ownership of shares in companies registered elsewhere) to a legal entity established in a stable and reputable jurisdiction may find a UK company appealing.


Will I get a UK pension if I have a company in the UK?


Entitlement to a UK pension is not directly linked to the place of company registration but to the country where the work is actually performed. If a person has a registered business in another country and also works “as an employee” in the UK, they are subject to UK pension regulations, provided the work in the UK is genuinely carried out. For individuals employed as directors, this means they must travel to the UK, for example, to attend board meetings.


It’s worth noting that since Brexit, work permits are required in the UK for EEA nationals. Therefore, a person employed by a UK company should have the right to work there.


Can I register my company to the UK and operate it in another country?


It’s not that straightforward. Under double taxation treaties between the UK and other countries, a company is taxed in the country where its “place of effective management” is located, i.e., where the highest-ranking person or group of people (e.g., the board) makes the key managerial and commercial decisions essential to the company’s operations.


However, the place of management can be in the UK even if the company’s directors do not live in the UK or travel there. This could occur, for example, if directors participate in board meetings via Skype or telephone. In such cases, it’s sufficient for one director to be present at the meeting location.


If the place of management is in the UK but the company’s activities are conducted in another country, it may be deemed to have a permanent establishment in that country. This permanent establishment would be subject to the tax and accounting regulations of that country, and its profits would be taxable there.


What is company residency and a permanent establishment?


A company is a tax resident of the country where it is liable to tax on its worldwide income, taking into account double taxation treaties and domestic regulations.


Under double taxation treaties between the UK and other countries, a company is taxed in the country where its “place of effective management” is located, i.e., where the highest-ranking person or group of people (e.g., the board) makes the key managerial and commercial decisions essential to the company’s operations. A company may be a UK tax resident even if its directors do not live in the UK or travel there. This could happen, for instance, if the place of management cannot be determined. In such cases, under UK domestic rules, the company is considered a UK resident. Another example is when directors participate in board meetings via Skype or telephone, with just one director present at the meeting location.


More information on tax residency can be found HERE.


A permanent establishment, on the other hand, is a fixed place through which the company’s activities are conducted. For a UK company, a permanent establishment in another country could include a management headquarters, branch, office, factory, workshop, or any site for extracting natural resources. It also includes a construction site if the building work lasts longer than 12 months.


A permanent establishment does not include a facility maintained solely for preparatory or auxiliary purposes, such as storing or delivering goods, purchasing goods, or gathering information. Notably, a person acting on behalf of the company who has and habitually exercises the authority to conclude contracts on its behalf is also considered a permanent establishment, unless their activities are limited to preparatory or auxiliary tasks.


Profits generated by a permanent establishment are taxed in the country where it is located, not where the company is registered. A branch of a UK company registered in another country is typically considered its permanent establishment.


How much is the “National Insurance” contribution in the UK?


In the UK, not every employee or self-employed person has to pay National Insurance (NI) contributions. The obligation applies to those earning above the contribution-free threshold, which changes annually. For the 2025/26 tax year, this threshold is £12,570. For employed individuals, contributions are calculated based on weekly/monthly earnings above £1,048 per month.


For directors and employees, pension insurance covers those earning above the “lower earnings limit” (currently £486 per month), even if contributions are not actually paid. Above the threshold, directors and employees pay 13.8% of income from the employer’s side and 12% from the director/employee’s side.


Self-employed individuals currently pay a fixed contribution of £3.45 per week, plus 6% of profits above £12,570 annually, which drops to 2% above £50,270 (in the 2025/26 tax year).


These contributions do not provide entitlement to healthcare insurance.


Can I be a director of a UK company while living in another country?


Directors of a UK company can reside anywhere in the world.


However, it’s worth noting that:


  • A company is a tax resident of the country where it is managed. For example, the fact that the sole director lives in another country might suggest (though not necessarily) that the company is a tax resident of that country. It could also indicate that the company has a permanent establishment in that country.
  • For a director to legally receive a salary from the company under an employment contract, they should perform the duties covered by the contract in the UK.

May profits from a UK company be taxed in another country?


Profits from a UK company may be taxable in another country, depending on that country’s tax laws and any applicable double taxation treaties. This could apply to payroll payments and dividends. However, usually, any tax paid in the UK may be deductible from the tax calculated in the other country, subject to the terms of the relevant treaty.


What reports and filings must a company submit?


Every company must annually submit a financial statement to Companies House (within 9 months of the end of the accounting year) and an annual report (‘confirmation statement’). Companies conducting business must also file a tax return with HM Revenue and Customs (HMRC).


Companies registered as employers must submit payroll declarations with each payment, typically before or on the day of payment to an employee/director.


Can I open a company bank account without travelling to the UK?

The easiest way to open a bank account for a UK company is to use a fintech service like Revolut or Wise. Opening an account with a traditional bank usually requires an in-person visit.


Can I open a bank account in another country for a UK company?


Some banks in other countries offer the option to open an account for a foreign company. To do so, you’ll typically need a certificate confirming the right of representation and an apostille, a document issued by the UK Foreign Office verifying that the document is valid for use internationally. We can assist in obtaining these documents.


ORDER THE CERTIFIED AND LEGALIZED (APOSTILLE) DOCUMENT HERE.


Can my company have a VAT number if I am based overseas?


Typically, the country responsible for VAT registration is where the sale takes place, which is usually the location of the business activity. This may differ from the company’s registration or headquarters location. Thus, if sales occur in another country, VAT registration is generally required there. You cannot normally register for VAT in the UK for a company that does not conduct business there, even if it is incorporated and registered with Companies House.


However, VAT registration in the UK may be required, for example, in cases such as:


  • Selling goods or electronic services to customers in the UK
  • Providing land-related services, e.g., construction services, in the UK

Does a company director need a National Insurance Number?


A company director does not need a National Insurance Number (NIN) to perform their role or be employed by the company.


An NIN is required to have an individual pension account in the UK, to gain pension rights, and, in practice, to obtain an A1 certificate or exemption from insurance contributions if employed outside the UK.


How much is the tax-free allowance in the UK?


The tax-free allowance changes annually. For the 2025/26 tax year, it is £12,570 per year. There is also a National Insurance contribution-free allowance, currently also £12,570. This means a company director earning below this amount pays no taxes or contributions. However, the company may still have to pay, as its tax-free allowance is lower – £5,000 per year in the 2025/26 tax year. If the company employs more than one person, it is usually eligible for the ‘Employment Allowance’.


What is Employment Allowance?


Employment Allowance is a tax relief for small employers. It cancels the first £10,500 of National Insurance contributions from the employer’s side. In practice, this means the employer only deducts income tax and 8% NI from the employee/director’s salary above the tax-free threshold.


Can I register as self-employed in the UK while living in another country?


You can register as self-employed in the UK if the work is actually performed there. In practice, this means you must travel to the UK to provide services. If you also conduct business in another country, you may be subject to social insurance in that country, unless only a minor part of your activity is performed there.


Which is more beneficial – a limited company or self-employment?


For UK tax residents, from a purely tax perspective, self-employment is currently more beneficial.

However, a limited company offers advantages that self-employment does not, such as separate legal personality and owners’ liability limited to the amount of share capital.

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