Starting a Business in the UK as a Foreigner: Visas, Costs and Legal Steps

Starting a business in the UK as a foreigner is legally possible, even if the founder does not live in Britain and is not a British citizen.

A non-UK resident can own 100% of a UK limited company, become its director and incorporate it without needing a British business partner. UK company directors do not have to live in the UK, although the company itself must have an appropriate UK registered office address.

However, there is an important distinction that foreign entrepreneurs need to understand:

Owning a UK business does not automatically give someone permission to live or work in the UK.

Company law, immigration law and tax law are separate systems. A founder may be perfectly entitled to own a British company from India, the UAE, the United States or another country while still needing an appropriate immigration status before physically moving to Britain and working there.

As of 9 September 2026, foreign founders also need to consider Companies House identity verification, UK tax, VAT, banking, customs, EORI registration and—where physical products are involved—import and fulfilment rules.

Why Do Foreign Founders Choose the UK?

The UK remains attractive because incorporating a standard private limited company is comparatively straightforward, there is no general requirement for the director to be UK resident, and foreign shareholders can own the entire company.

That does not automatically make Britain the best jurisdiction for every entrepreneur.

Founders deciding where to incorporate should compare the country where customers are located, where the company will actually be managed, where its founders live, its banking requirements, fundraising plans, VAT position and the tax rules of every relevant jurisdiction.

Ireland’s Revenue currently states that the standard rate on trading income is 12.5%, while the Companies Registration Office confirms the EEA-director requirement and available exceptions. Estonia’s Tax and Customs Board confirms that undistributed profits are generally not taxed until distribution and that the current distributed-profit calculation is 22/78.

The UAE Federal Tax Authority and US Internal Revenue Service likewise confirm their respective general corporate tax frameworks.

These headline rates should not be used on their own to choose where a business is incorporated. A company registered in one jurisdiction but effectively managed, staffed or operated from another can create additional residence, permanent-establishment, payroll, VAT and reporting questions.

Can a Foreigner Start a Business in the UK?

Yes.

A foreign national can generally:

• own some or all of the shares in a UK limited company
• act as a company director
• establish a UK subsidiary of an overseas company
• register a UK establishment for an existing overseas company
• operate as a sole trader if their immigration status allows self-employment
• invest in a UK company without personally moving to Britain

There is no requirement for a private company’s shareholders or directors to be British citizens.

For a private limited company, at least one director is required. Directors do not have to live in the UK.

The company does, however, need an appropriate registered office address in the part of the UK in which it is incorporated. A company registered in England and Wales, for example, needs an address there. A simple PO Box cannot be used.

Does Starting a UK Company Give a Foreigner a Visa?

No.

Registering a company and obtaining immigration permission are completely separate processes.

Someone living abroad can establish and own a British company without obtaining a UK work visa if they continue running the company from overseas.

The situation changes when that person wants to come to Britain and personally perform work.

A Standard Visitor can undertake certain permitted business activities, including attending meetings, negotiating and signing contracts, visiting trade fairs and carrying out site visits. However, visitors cannot normally work for a UK company or work as a self-employed person in Britain.

Being listed as a director at Companies House therefore does not override immigration restrictions.

What About EU, EEA and Swiss Founders After Brexit?

EU, EEA or Swiss citizenship no longer creates a general right to move to Britain and start working in a business.

Freedom of movement ended on 31 December 2020. Someone who is protected by the EU Settlement Scheme may have existing rights, but a new EU founder moving to Britain will generally need appropriate UK immigration permission in the same way as other foreign nationals.

Irish citizens are the major exception under Common Travel Area arrangements and generally do not need permission to live and work in the UK.

This distinction is important because older business guides sometimes continue to discuss EU citizenship as though it creates an entrepreneur route in its own right.

Which UK Visa Can a Foreign Entrepreneur Use?

There is no single universal “business owner visa”.

The appropriate route depends on the founder’s circumstances, skills, existing business, proposed UK operation and current immigration status.

Innovator Founder Visa

The Innovator Founder visa is the UK’s main dedicated immigration route for founders establishing qualifying innovative businesses.

It can allow the applicant to:

• establish one or several businesseshttps://www.gov.uk/innovator-founder-visa?utm_source=chatgpt.com
• work for those businesses
• work as a company director
• undertake qualifying outside employment
• bring eligible dependants
• potentially apply for settlement after three years if the relevant requirements are met

The business proposal must meet the route’s requirements and receive endorsement from an approved endorsing body.

As of September 2026, the visa application costs £1,357 when applying from outside the UK or £1,693 when applying to extend or switch from an eligible status inside Britain.

There is also a £1,000 endorsement fee, plus at least two mandatory contact-point meetings costing £500 each. The Immigration Health Surcharge is separate.

The old Start-up visa is closed to new applications, so articles presenting Start-up as the normal new-founder route are outdated.

There is also an important switching restriction: someone currently in Britain as a visitor cannot switch directly from a visit visa to the Innovator Founder route. They would normally need to leave Britain and make the appropriate application from abroad.

Global Talent Visa

The Global Talent route deserves particular attention from founders working in digital technology, academia and research, or arts and culture.

It is not a general entrepreneur visa. The applicant must be recognised as a leader or potential leader in an eligible field, normally through an endorsement process unless they hold a qualifying prestigious prize.

For qualifying founders, however, it can be considerably more flexible than a route centred on a particular start-up proposal.

For example, qualifying digital technology Global Talent holders can be employed, self-employed and act as company directors. They do not need a job offer and there is no general minimum salary requirement under the route. The technology category includes fields such as fintech, artificial intelligence, gaming and cyber security.

Equivalent flexibility applies within qualifying academia/research and arts-and-culture Global Talent categories. Depending on the basis of the visa and field, settlement may potentially become available after three or five years.

This can make Global Talent particularly relevant to an accomplished technology entrepreneur, researcher, product leader or creative-sector founder who already has a substantial professional track record.

It should not, however, be treated as an easier substitute for Innovator Founder simply because someone wishes to launch a business.

UK Expansion Worker Visa

The UK Expansion Worker route is designed for an existing overseas company that wants to establish its first UK presence.

The applicant must already work for the overseas business as a senior manager or specialist employee, and the overseas employer must sponsor the UK role.

It is therefore quite different from forming a completely new independent start-up.

The overseas business must not already be trading in Britain under this route. Current eligibility also includes qualifying occupation and salary requirements.

The current application fee is £340, with the Immigration Health Surcharge and maintenance requirements applying separately.

Other Immigration Statuses

Other statuses may already allow business activity or self-employment.

Examples can include some Global Talent, Graduate and family-route permissions, although the exact conditions must always be checked.

Student and sponsored-worker conditions can be significantly more restrictive. Anyone considering freelance work or another business while holding a visa should check the conditions applying to that particular immigration route. The rules around side hustles for UK visa holders are especially important where the individual already has sponsored employment or student status.

Never assume that forming a limited company makes otherwise prohibited self-employment lawful.

Which Business Structure Is Best for a Foreign Founder?

The most appropriate structure depends on whether the founder is moving to the UK, remaining abroad, already owns an overseas company, expects outside investment or wants limited liability.

For most independent foreign entrepreneurs starting a normal UK venture, a private company limited by shares is usually the structure considered first.

A PLC is normally unnecessary unless there is a genuine reason to operate within the public-company framework.

Similarly, putting an offshore company above a UK operation is not a shortcut around British law or tax. A UK subsidiary or establishment can still have UK Corporation Tax, VAT, payroll and Companies House obligations, while the overseas parent may create another layer of tax and reporting requirements.

Can a Foreigner Operate as a Sole Trader?

Potentially, but the person’s immigration status must permit self-employment if the work is being carried out in Britain.

A sole trader and the business are legally the same person. The owner is personally responsible for business debts and normally reports profits through Self Assessment.

Anyone uncertain about the terminology should first understand whether a sole trader is the same as self-employed.

A person will normally need to register with HMRC where their gross qualifying trading income exceeds the applicable threshold. Detailed steps for registering as a sole trader in the UK explain the Self Assessment process, UTR and registration deadlines.

A foreign founder remaining overseas should obtain cross-border tax advice before simply registering as a UK sole trader, because the correct tax position depends on residence, where the business is carried on and any applicable double-taxation agreement.

How Does a Foreigner Register a UK Limited Company?

1. Check the Immigration Position

First decide whether the founder will remain abroad or physically work in Britain.

If they will work from the UK, confirm that their immigration status permits the intended activity.

2. Choose the Company Name

The proposed name must comply with Companies House rules and should also be checked against existing trade marks.

3. Arrange a UK Registered Office

Every company needs an appropriate physical registered office address in the jurisdiction where it is incorporated.

Foreign founders often use an accountant, solicitor or professional registered-office service where they do not have their own British premises.

The address will normally appear on the public register.

4. Appoint the Director or Directors

A private limited company must have at least one director.

The director does not need to live in Britain, but remains legally responsible for the company’s statutory obligations.

5. Decide Whether to Appoint a Company Secretary

A private limited company is not required to have a company secretary.

Some businesses voluntarily appoint one to assist with administration and governance.

A company secretary can also be a director, but cannot simultaneously be the company’s statutory auditor. Importantly, appointing a secretary does not transfer the directors’ ultimate legal responsibilities to that person. official company secretary rules

6. Identify the Shareholders and PSCs

A company limited by shares needs at least one shareholder.

Companies House also requires identification of people with significant control. This commonly includes anyone holding more than 25% of the shares or voting rights.

A foreign founder can be the sole director, sole shareholder and PSC where the structure permits it.

7. Complete Identity Verification

This is one of the most important changes missing from older guides.

Mandatory Companies House identity verification began on 18 November 2025.

New directors now need to verify their identities in connection with incorporation or appointment, while existing directors and PSCs are being brought into the system during the transition arrangements.

Verification can be carried out through GOV.UK One Login or through an eligible Authorised Corporate Service Provider. Once verified, the individual receives a Companies House personal code.

The rule applies to foreign directors as well as UK residents.

8. Select the SIC Code and Formation Documents

The incorporation requires the appropriate SIC code describing the company’s activities.

A standard company also needs documents such as its memorandum and articles of association and statement of capital.

9. Register With Companies House

The official online incorporation service currently costs £100.

A paper IN01 application currently costs £124 and generally takes longer.

After incorporation, Companies House issues a certificate of incorporation and company number.

Should a Foreign Founder Use a Formation Agent or Register Directly?

A formation agent is optional.

For a straightforward company, registering directly through Companies House can be perfectly adequate.

Companies House publishes information on authorised agents, also called Authorised Corporate Service Providers (ACSPs). These providers must meet the applicable registration and anti-money-laundering supervision requirements before providing regulated Companies House identity-verification services.

For a non-resident founder, paying for a professional registered office, mail handling or assistance with Companies House filings may be convenient.

But an agent does not remove the legal responsibilities of directors, guarantee a visa, guarantee VAT treatment or turn an unsuitable corporate structure into a suitable one.

What If the Founder Already Has a Foreign Company?

There are generally two relevant approaches.

Form a UK Subsidiary

The foreign company can own shares in a new UK limited company.

That creates a separate British legal entity.

This is often useful where the group wants separate UK accounts, contracts, employees and liabilities.

Register a UK Establishment

An overseas company opening a physical place of business in Britain may instead need to register the establishment with Companies House.

Form OS IN01 is used for this process and currently carries a £124 registration fee. Companies House says registration is generally required where an overseas company sets up a place of business or normally carries on business from somewhere in the UK.

A UK establishment is not a new legal company separate from its overseas parent.

Companies House identity-verification requirements also apply to directors of overseas companies with registered UK establishments.

How Much Does It Cost to Start a UK Business as a Foreigner?

There is no single cost because the total depends heavily on immigration, business structure, office requirements and professional support.

For many foreign entrepreneurs, immigration and professional-advice costs will be significantly greater than the company-formation fee itself.

Can a Non-Resident Open a UK Business Bank Account?

Opening the company is often easier than opening its bank account.

A Companies House certificate does not guarantee that a particular bank will accept a non-resident director.

Providers perform their own Know Your Customer, anti-money-laundering, sanctions, business-model and source-of-funds checks.

Commonly requested information can include:

• passport or government-issued identification
• residential address evidence
• certificate of incorporation
• Companies House details
• details of directors and beneficial owners
• nature of the business
• expected transaction volumes
• source of funds
• countries where money will be received or sent
• contracts, invoices or evidence of trading

Which Banks and FinTech’s Can Foreign Founders Consider?

Current eligibility pages confirm that Monzo and Starling should not simply be described as universally “non-resident friendly”. Their conditions are substantially UK-resident focused.

NatWest and HSBC also impose eligibility criteria that can create difficulties for a founder who has no UK-resident applicant or UK tax-resident business.

Wise Business and Airwallex can be useful cross-border alternatives for eligible businesses, particularly where international collections or multiple currencies are important. However, they should not automatically be treated as identical to having a conventional UK bank account.

A founder should therefore check each provider’s current eligibility criteria before incorporating solely because an agent has advertised “UK banking included”.

What If the Foreign Founder Imports or Sells Physical Goods?

This is one of the biggest differences between establishing a service company and establishing an e-commerce business.

A foreign founder importing stock into Britain may have to deal with:

1. an EORI number
2. customs declarations
3. commodity codes and Customs Duty
4. import VAT
5. postponed VAT accounting
6. UK VAT registration
7. online marketplace VAT rules
8. fulfilment-house requirements
9. platform-specific requirements such as Amazon FBA

Does the Business Need an EORI Number?

A business importing goods into England, Scotland or Wales will normally need a GB EORI number.

Different arrangements can apply to movements involving Northern Ireland, where an XI EORI may be relevant.

The government recommends checking the EORI requirement before attempting to move commercial goods because it may be needed for customs processes.

Even businesses that are not established in Britain can sometimes obtain an EORI when their UK customs activity requires one.

Who Makes the Customs Declaration?

Imported goods normally need a customs declaration.

The business can potentially manage customs itself, but many small overseas sellers appoint a customs agent, freight forwarder or courier to handle declarations.

The correct commodity code affects Customs Duty and other import requirements, so it should not simply be guessed from a product description.

How Does Import VAT Work?

Import VAT is a separate consideration from Customs Duty.

A VAT-registered business may be able to use postponed VAT accounting, which allows eligible import VAT to be accounted for through the VAT Return instead of being paid upfront at the border.

HMRC states that approval is not normally required to use postponed VAT accounting, but the correct VAT registration details need to be included in the customs declaration.

This can materially improve cash flow for an importer, although the business needs the records required to support its VAT return and input-tax recovery.

Does the £90,000 VAT Threshold Always Protect an Overseas Seller?

No.

The ordinary UK VAT registration threshold is currently £90,000 of taxable turnover.

However, this threshold must not be applied blindly to a foreign business.

HMRC’s rules for non-established taxable persons (NETPs) provide that a business without a UK establishment can be required to register when it makes taxable supplies of any value in the UK. The normal £90,000 registration threshold does not apply to those NETPs.

A registered office, serviced office or virtual office alone is also not necessarily sufficient to create a genuine UK business establishment for VAT purposes. HMRC looks at factors such as central administration or a permanent physical presence with suitable human and technical resources.

That makes VAT one of the areas where a foreign entrepreneur should obtain advice based on the actual supply chain rather than relying only on where the company was incorporated.

What About Amazon FBA in the UK?

Foreign founders using Fulfilment by Amazon (FBA) need to distinguish between Amazon’s platform requirements and HMRC’s tax/customs requirements.

When stock is imported and physically stored in UK fulfilment centres, the seller needs to consider:

• who is the importer of record
• GB EORI registration
• Customs Duty
• import VAT
• whether postponed VAT accounting is available
• UK VAT registration
• where the goods are located at the point of sale
• whether Amazon is treated as the deemed supplier for VAT on a particular transaction
• fulfilment-house compliance
• Amazon’s own seller verification process

Amazon’s current seller-registration process can require government identification, evidence that the business is legitimate, address verification, bank details and other verification documents. Amazon UK seller registration requirements

HMRC has separate rules governing goods sold through online marketplaces by overseas sellers. The VAT result depends on matters including where the goods are located at the point of sale, whether the seller is established in the UK, whether an online marketplace facilitates the transaction and, in some cases, the consignment value.

A founder should therefore avoid assuming that “Amazon collects all the VAT” or that “the business is below £90,000 so no VAT registration is needed”.

Neither statement is reliable without looking at the actual transaction structure.

Does a UK Fulfilment Warehouse Need to Be Approved?

Where an overseas seller uses a UK fulfilment business to store imported goods, the Fulfilment House Due Diligence Scheme (FHDDS) can also become relevant to the fulfilment provider.

HMRC maintains a current list of registered fulfilment businesses. A foreign seller can check whether the provider it intends to use appears on the appropriate register.

What Taxes Does a Foreign-Owned UK Company Pay?

Foreign ownership does not exempt a British company from UK business taxes.

Corporation Tax

For the financial year beginning 1 April 2026, the Corporation Tax rates remain:

The thresholds can be reduced where there are associated companies and other rules can affect the calculation.

A UK-incorporated company can also create tax obligations in the country where its foreign founder lives or actually manages the business. Cross-border residence and double-taxation questions therefore deserve specialist attention.

Sole Trader Income Tax

A sole trader generally pays Income Tax and relevant National Insurance based on their taxable business profits rather than Corporation Tax.

Where the person lives outside Britain, however, their residence and the location of the trade become important.

Salary and Dividends

A company owner may potentially receive salary, dividends or both.

The tax outcome depends on the company’s profits, the founder’s residence, UK tax rules and the laws of their country of residence.

Foreign founders should not assume that a dividend paid from a UK company is automatically tax-free in their home country.

When Must a Foreign Business Register for VAT?

For an ordinary UK-established business, compulsory VAT registration generally applies when taxable turnover exceeds the current £90,000 threshold or is expected to exceed it within the relevant forward-looking period.

For a genuine non-established taxable person, the normal threshold may not apply at all.

This distinction is particularly important for overseas consultants, online sellers and international companies that create a British registration address without establishing genuine management or operational resources here.

The place-of-supply rules must also be considered. For some B2B services supplied by an overseas business, for example, the reverse-charge mechanism may affect whether UK VAT registration is required.

Does Making Tax Digital Apply to Foreign Entrepreneurs?

It can.

Making Tax Digital for Income Tax began its mandatory rollout on 6 April 2026.

HMRC’s current timetable is:

Qualifying income is based on gross income from self-employment and property before expenses rather than simply taxable profit.

Those within the regime need compatible software to keep relevant digital records and submit quarterly updates, as well as complete the required end-of-year tax process.

The detailed rules and preparation steps for Making Tax Digital for self-employed people are particularly relevant to foreign founders operating personally as UK sole traders.

MTD for Income Tax should not be confused with MTD for VAT or the accounting and Corporation Tax obligations of a limited company.

Does the Business Need Any Licences?

Possibly.

Incorporation does not automatically authorise every commercial activity.

Depending on the industry, licences or regulatory permissions may be required for businesses such as:

• food businesses
• alcohol sellers
• financial services
• transport operations
• care providers
• recruitment businesses
• gambling businesses
• security services
• waste carriers
• property businesses
• certain importers and exporters

Regulated sectors should be checked before trading begins rather than after the company has already taken customer money.

Does a Foreign-Owned Company Need ICO Registration?

A business processing personal data must consider the UK GDPR and Data Protection Act requirements.

Depending on the organisation’s activities, it may need to pay the data-protection fee to the Information Commissioner’s Office.

A company should not assume that being foreign-owned removes these duties if it processes UK customer, employee or supplier information.

What Insurance May Be Required?

Insurance depends on the business.

Employers’ Liability insurance will normally become particularly important when the company employs staff, subject to the statutory rules and exemptions.

Other useful or industry-specific policies can include:

• public liability
• professional indemnity
• product liability
• cyber insurance
• commercial property cover
• goods-in-transit cover

An e-commerce importer should pay particular attention to product liability and whether overseas manufacturer insurance actually protects the UK seller.

What Happens When the Company Employs UK Staff?

A foreign-owned company employing people in Britain may need to:

• register as an employer with HMRC
• operate PAYE
• deduct applicable Income Tax and National Insurance
• comply with workplace pension duties
• hold appropriate Employers’ Liability insurance
• meet National Minimum Wage requirements
• comply with employment law
• conduct right-to-work checks

If overseas staff are temporarily sent to Britain, additional immigration, PAYE and National Insurance rules can apply.

What Records Must the Business Keep?

Good record-keeping is particularly important for a foreign-owned business because information may be needed for more than one jurisdiction.

Records may include:

• sales invoices
• purchase invoices
• bank statements
• expense evidence
• payroll records
• VAT records
• customs declarations
• EORI information
• import VAT statements
• supplier and shipping documents
• Companies House records
• shareholder and PSC information
• contracts
• stock records
• marketplace transaction reports

E-commerce businesses should retain customs and marketplace records in a way that allows transactions to be reconciled with VAT returns and accounting records.

How Does This Work in Real Life?

Example 1: An Indian Founder Selling Through Amazon UK

Priya lives in India and wants to sell her fashion products to British consumers.

She incorporates a UK private limited company and remains in India.

She does not receive a UK visa simply because she is now a director and shareholder. If she continues managing the business from India, UK immigration permission is not automatically required merely to own the company.

However, because physical goods are being imported into Britain and stored through Amazon FBA, she may need a GB EORI number, customs declarations and import VAT arrangements.

VAT also needs specific analysis. She should not assume the ordinary £90,000 threshold automatically applies simply because the company has a UK registered office. The location of the stock, the company’s actual establishment, marketplace rules and who makes the taxable supply all matter.

She must separately complete Amazon’s seller verification requirements and should check the fulfilment, customs and tax setup before shipping the first inventory batch.

Example 2: A Dubai-Based SaaS Founder Serving UK Customers

Omar lives in Dubai and runs a software company.

He can potentially incorporate a UK subsidiary or establish an independent UK company while continuing to live in the UAE.

Owning the British company does not give him permission to relocate to London and work there.

He should also ask whether a UK company is commercially necessary in the first place. A foreign SaaS company can often sell to British customers without establishing an entirely new British company, although VAT place-of-supply, customer requirements and potential UK permanent-establishment issues need consideration.

If he does create a UK company, he needs to consider UK Corporation Tax alongside UAE tax-residence and cross-border management questions.

He should also check banking eligibility before assuming that every UK digital bank will accept a director living solely in the UAE.

Example 3: A US Consultant Visiting London to Explore a Start-up

Daniel is a US consultant who visits London to meet prospective partners and negotiate contracts.

Those types of business meetings can potentially fall within Standard Visitor permitted activities.

But he cannot simply incorporate a UK company and then begin working for it in Britain as a self-employed founder while remaining a visitor.

Nor can he switch from visitor status to an Innovator Founder visa while remaining inside the UK. The current rules expressly prevent that switch.

If his proposed business genuinely meets the Innovator Founder requirements, he would normally need to make the appropriate application from outside Britain.

And if the proposal is simply a conventional consultancy, it should not automatically be assumed to satisfy the Innovator Founder requirements relating to an innovative, viable and scalable business.

If Daniel has an exceptional track record in an eligible technology, research or creative field, Global Talent might separately deserve investigation—but qualification depends on his credentials rather than merely his intention to start a company.

What Are the Most Common Mistakes Foreign Founders Make?

Assuming Company Ownership Gives Immigration Permission

It does not.

Companies House registration and UK immigration status are separate.

Arriving as a Visitor and Starting Work

Visitors can conduct defined business activities, but ordinary paid or unpaid work for a UK company and normal self-employment are generally prohibited.

Assuming an EU Passport Still Provides Automatic Business Rights

Except where existing status or other special arrangements apply, post-Brexit EU nationality alone does not provide a general right to move to Britain and work.

Using a Virtual Address and Assuming the Business Is Fully UK-Established for VAT

HMRC’s VAT establishment test looks beyond incorporation and the registered-office address.

This can materially affect the VAT threshold available to an overseas business.

Ignoring EORI and Customs Until Goods Reach the Border

This can lead to delays, extra charges and stock being held while missing information is obtained.

Treating Amazon’s VAT Collection as the Seller’s Entire VAT Position

Marketplace VAT rules are transaction-specific.

Import VAT, customs, registration and input-tax recovery can still remain the seller’s responsibility.

Choosing a Bank After Incorporating

A foreign founder should investigate provider eligibility before assuming a particular UK bank account will be available.

Paying a Formation Agent Without Understanding What Is Included

A cheap formation package may not include all registered-office, mail, accounting, tax or identity-verification services.

Creating an Offshore Holding Company Solely to “Avoid UK Tax”

Cross-border structures can increase rather than reduce compliance if there is no genuine commercial reason for them.

Ignoring Tax in the Founder’s Home Country

A UK company can coexist with tax obligations where the owner lives or manages it.

Using Outdated VAT or Corporation Tax Figures

The UK VAT registration threshold is currently £90,000 for businesses entitled to use the normal threshold, while Corporation Tax is no longer a flat 20%.

Practical Checklist for Starting a Business in the UK as a Foreigner

Before trading, a foreign founder should normally work through the following:

1. Decide whether the business actually needs a UK entity.
2. Decide whether the founder will remain abroad or work physically in Britain.
3. Check immigration permission before carrying out work in the UK.
4. Compare sole trader, private limited company, subsidiary and UK-establishment structures.
5. Arrange an appropriate UK registered office if forming a company.
6. Choose the directors, shareholders and PSCs.
7. Complete Companies House identity verification.
8. Decide whether to register directly or use a formation agent.
9. Incorporate the company.
10. Set up appropriate accounting and Corporation Tax records.
11. Check bank and fintech eligibility.
12. Review UK VAT registration.
13. If importing goods, obtain the correct EORI and customs setup.
14. Decide how import VAT will be handled.
15. Check marketplace and fulfilment requirements where selling online.
16. Register for PAYE if employing staff.
17. Check licences, ICO requirements and insurance.
18. Determine whether MTD applies.
19. Review tax exposure in the founder’s country of residence.
20. Keep UK company, tax, customs and banking records organised from the first transaction.

Final Answer

Yes, a foreigner can start and own a business in the UK.

A non-resident can generally own 100% of a British private limited company and act as its director without having a British business partner or personally living in Britain.

What the founder cannot do is treat company incorporation as immigration permission.

Anyone intending to physically work in the UK must separately ensure their immigration status permits the activity.

Foreign founders should also look beyond Companies House registration. A modern UK business setup can involve Corporation Tax, VAT, banking, identity verification, payroll, licences and—for e-commerce businesses—EORI registration, customs declarations, import VAT and marketplace rules.

For an entrepreneur remaining abroad, the biggest risks are often not forming the company incorrectly. They are choosing the wrong tax structure, assuming a bank will accept non-resident directors, overlooking UK VAT rules or importing goods before the customs setup is ready.

Professional tax or immigration advice can be particularly valuable where the founder is moving to Britain, operating from multiple countries, importing goods, using Amazon FBA, employing UK staff or creating a group involving both UK and overseas companies.

Frequently Asked Questions

Can a Foreigner Own 100% of a UK Company?

Yes. A UK private limited company can generally be entirely foreign-owned.

Does a UK Limited Company Need a British Director?

No. Directors do not have to live in the UK. The company must, however, have an appropriate UK registered office address.

Does a Foreign Founder Need a British Business Partner?

No. There is no general requirement to appoint a British shareholder or partner simply because the founder lives abroad.

Can Someone Register a UK Company While Living Abroad?

Yes. Company incorporation and immigration status are separate matters.

Does Opening a UK Company Provide a Visa?

No. Companies House does not grant immigration permission.

Can a Visitor Start Running Their UK Company While in Britain?

A visitor can undertake certain permitted business activities, but cannot normally work for a UK company or work as a self-employed person in Britain.

Can a Visitor Switch to an Innovator Founder Visa in the UK?

No. Current rules specifically prevent someone on a visit visa from switching to Innovator Founder from inside Britain.

Is the Old UK Start-up Visa Still Available?

No. The Start-up route is closed to new applications.

Is There a Minimum Investment for the Innovator Founder Visa?

There is no single fixed minimum investment amount applying to every Innovator Founder application. The business must instead meet the route’s requirements and obtain the necessary endorsement.

Can an EU Citizen Start a Business in the UK After Brexit?

Yes, but EU citizenship alone does not generally give a new arrival the right to live and work in Britain. Relevant immigration permission may be required. EU Settlement Scheme status and Irish citizenship are important exceptions or separate cases.

Is a Company Secretary Compulsory?

Not for a private limited company. A secretary may be appointed voluntarily, can also be a director, but cannot be the company’s auditor. Directors remain legally responsible.

Does a Foreign Founder Need a UK Bank Account?

A particular UK bank account is not what legally creates the company, but an appropriate business banking or payment arrangement is normally necessary for practical trading. Individual providers have their own residency and compliance criteria.

Does a Foreign Business Get the £90,000 Vat Threshold?

Not automatically. Non-established taxable persons making taxable supplies in Britain can be required to register regardless of turnover.

Does an Online Seller Need an Eori Number?

If commercial goods are being imported into Great Britain, a GB EORI will normally be required for the relevant customs processes. Different rules may apply to Northern Ireland movements.

Can a Foreigner Sell Through Amazon Fba UK?

Yes, subject to Amazon’s seller requirements and applicable UK customs, VAT, import and marketplace rules. Keeping stock in UK fulfilment centres can create tax and customs obligations that do not arise for a purely overseas service business.

Is a Formation Agent Compulsory?

No. A straightforward private limited company can be registered directly through Companies House.

Is a PLC Better for an Overseas Founder?

Usually not for an ordinary new business. A private limited company is generally simpler unless there is a genuine commercial reason to use the public-company regime.

Can an Offshore Company Own a UK Company?

Yes, depending on the structure. But overseas ownership does not remove the UK subsidiary’s Companies House, tax, VAT or other legal obligations and can introduce additional international tax complexity.

Does a Foreign Entrepreneur Need an Accountant?

Not always, but professional help becomes increasingly useful where there is international tax residence, VAT, imported stock, Amazon FBA, employees, multiple companies or significant transactions.

Does Making Tax Digital Apply to Foreign Sole Traders?

It can if the person falls within the UK MTD for Income Tax rules. Mandatory rollout began in April 2026 for qualifying sole traders and landlords above the applicable income threshold.

About Sophia Bennett

An experienced editor with a passion for transforming complex subjects into clear, engaging, and accessible content. Focused on maintaining high editorial standards while ensuring readers receive practical, trustworthy, and timely information.

View all stories by Sophia Bennett

More in Starting a Business

Starting a Business

Sophia Bennett|Aug 27, 2026

What Must an Entrepreneur Do After Creating a Business Plan? 12 Next Steps

After creating a business plan, an entrepreneur must turn the assumptions in the plan into measurable actions. That normally means validating customer demand, checking the financial forecasts, deciding how much funding is actually required, setting up the business legally, organising finances and operations, preparing marketing, launching the product or service and comparing real performance with […]

Starting a Business

William Carter|Jul 25, 2026

Costa Coffee Franchise Cost UK: Investment, Fees and Requirements

The Costa Coffee franchise cost is not publicly confirmed as a single fixed amount. Costa Coffee does not publish a standard UK franchise fee, royalty percentage, minimum personal investment or complete shop-opening package on its public website. Independent UK franchise platforms commonly estimate that opening a Costa Coffee location could require approximately £250,000 to £800,000, […]