The short answer
Yes, you can be a director and shareholder of a UK limited company while living abroad, and there is no residency requirement. The company still files accounts and pays UK Corporation Tax, but your personal tax depends on where you are resident. Management and control, banking, VAT and treaty rules all need care.
Checked 26 October 2026. Rates for 2026/27.Key facts
| Fact | Detail |
|---|---|
| Allowed? | Yes, no UK residency needed |
| Company tax | UK Corporation Tax on UK-resident company |
| Personal tax | Based on your residence |
| Registered office | Must be UK address |
| Verification | Companies House ID check needed |
Can a non-resident run a UK company?
Yes. UK company law does not require directors or shareholders to live in the UK. Anyone aged 16 or over, who is not disqualified, can be a director, and shareholders can be of any nationality or residence. However, the company must have a UK registered office address and at least one director who is a natural person. Companies House also requires directors to verify their identity, which overseas directors can do online or through an authorised agent. The main complications arise from tax, banking and compliance rather than from forming the company.
Where is the company resident for tax?
A company incorporated in the UK is generally UK tax resident, so it pays Corporation Tax on worldwide profits. A company incorporated elsewhere can also be treated as UK resident if its central management and control is exercised here. If you run a UK company from abroad, the company is still a UK company for Corporation Tax purposes, but a double tax treaty or local rules may create tax liabilities in the country where you live. There is also a risk of creating a taxable presence abroad, called a permanent establishment, so get advice if you work from another country.
Your personal tax as an overseas director
Your personal tax position depends on your residence status under the Statutory Residence Test and the rules of the country you live in. A non-UK resident is normally taxed in the UK only on UK-source income, and UK directors fees may be taxable in the UK even for overseas directors. Dividends from a UK company paid to a non-resident are not usually subject to UK withholding tax, but they may be taxable in your country of residence, subject to treaty relief. Always check both sides, because a tax saving in the UK can become a bill abroad.
Registered office and address requirements
Every UK company needs a registered office in the UK, which is where official post is sent and which appears on the public register. If you live abroad, you can use an accountant or registered office service. Your own directors service address can also be used instead of your home address, protecting your privacy. Make sure someone reliably monitors post from Companies House and HMRC, because missed notices can lead to penalties or strike-off. A trading address may be different from the registered office.
Opening a UK business bank account from abroad
Banking is often the hardest part. Traditional banks may require UK residence, a UK address or an in-person visit, while many online and fintech providers can onboard non-residents remotely using identity documents and proof of address. Expect questions about business activity, expected turnover and the source of funds. Having a clear business description, a website and evidence of customers helps approval. Consider multi-currency accounts if you invoice clients in other currencies, to reduce conversion costs.
VAT for overseas-run UK companies
A UK company must register for VAT if its taxable turnover exceeds the threshold, currently £90,000, regardless of where the director lives. Where services are supplied to clients abroad, the place of supply rules decide whether UK VAT applies. Selling goods across borders adds customs and import VAT considerations. A non-UK business without a UK company may have to register from the first sale in some cases. Seek advice on place of supply before pricing your services.
Payroll and salary decisions
If a non-resident director is paid a salary, the company may need to operate PAYE depending on where the work is done and the director’s status. Paying only dividends avoids payroll but may not be tax-efficient in your country of residence. Some directors take no UK salary and rely on treaty provisions, while others pay a small salary to remain within UK rules. Because outcomes differ by country, your accountant should model both UK and local taxes together.
Filing duties that do not change
Whether you live in London or Lisbon, the company must file annual accounts, a Corporation Tax return and a confirmation statement on time. Late filing penalties apply regardless of location. You also need to keep statutory registers, record dividends and maintain proper bookkeeping. Time zone and post delays are no excuse, so set reminders and use digital filing wherever possible.
Common risks to avoid
Frequent problems include creating a taxable presence abroad without realising, using a virtual address without monitoring post, failing to report dividends in the local country, and assuming no UK tax applies because the director is abroad. Others include poor documentation of where decisions are made and not keeping records in English or in a retrievable form. Treat the company as a real UK entity with real compliance duties, wherever you sit.
Practical steps to get started
Begin by confirming your tax residence and the treaty between the UK and your country. Then choose a UK registered office and a service address, complete Companies House identity verification and form the company with suitable articles. Appoint an accountant who understands cross-border issues, open a bank account that supports your currencies, and set up bookkeeping software that your advisers can access remotely. Document where key decisions are taken so the company’s position on residence is clear. Finally, diarise every deadline in UK time.
Employing people and contractors abroad
If you hire staff or contractors in other countries, local employment, tax and social security rules may apply, and your company could create a taxable presence there. Contractors are usually simpler but must be genuinely self-employed under local rules. Keep contracts clear, use local advisers where necessary and consider whether an overseas subsidiary or an employer-of-record service is more suitable than direct employment.
Winding down or moving the company
If you later return to the UK or move to another country, your tax position may change quickly. Leaving the UK can trigger exit rules, while returning may bring dividends into UK tax again. Consider striking off, selling or restructuring the company before a move, and take advice well in advance of changing residence.
Keeping records and evidence of control
Overseas directors should keep clear records showing where key decisions are made, including board minutes, travel logs and correspondence. These records help demonstrate the company’s tax position to HMRC and local tax authorities if questions arise. Store accounting records securely in a form that can be produced in the UK on request, and keep them for at least six years.
The bottom line
Yes, you can be a director and shareholder of a UK limited company while living abroad, and there is no residency requirement. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.
Frequently asked questions
Do I need to live in the UK to be a director?
No. UK company law has no residency requirement for directors or shareholders, though you must provide a UK registered office address.
Does a UK company pay UK tax if the director lives abroad?
Yes. A UK-incorporated company is normally UK tax resident and pays Corporation Tax on its profits, regardless of where the director lives.
Can I use my overseas address for Companies House?
Directors can use an overseas residential address, but the company must have a UK registered office. A service address can protect your home address privacy.
Will I pay UK tax on dividends if I am non-resident?
UK does not normally withhold tax on dividends paid to non-residents, but your country of residence may tax them. Check any double tax treaty.
Can I get a UK bank account without visiting?
Often yes with online business banks and fintech providers, though traditional banks may require UK presence or documents.
Can I use a UK virtual office as my registered office?
Yes, provided it is a real address where post can be received and the provider passes on official letters promptly.
This article is general information, not personal tax or financial advice. Rules and rates change, so check GOV.UK or speak to an accountant about your circumstances. Rates shown are for 2026/27, last checked November 2026.