Start a Company in the UK as an Australian Resident

Registering your UK company with Companies House

Once you’ve chosen your business structure, the next step is registering your UK limited company with Companies House. This process involves providing key details about your company and its management. Let’s break down what you’ll need.

Required information for registration

To register your company, you’ll need to provide the following company details:

• Company name
• Registered office address (must be in the UK)
• Director details (at least one director, who can be an Australian resident)
• Shareholder details
• Articles of Association

Appointing directors and shareholders

As an Australian resident, you can serve as both a director and shareholder of your UK company. You’ll need to provide personal information for each director and shareholder, including their name, date of birth, and contact details.

It’s important to choose directors and shareholders carefully, as they’ll have significant control over the company’s operations and decision-making.

Submitting your application

With all the required information gathered, you can submit your application to Companies House online. The registration process typically takes around 24 hours, and you’ll receive a certificate of incorporation once your company is registered.

Make sure to double-check all the details before submitting, as errors can delay the registration process. If you have any questions or concerns, don’t hesitate to seek guidance from Companies House or a professional advisor.

Setting up a UK business bank account as an Australian Resident

With your UK limited company registered, the next crucial step is opening a UK business bank account. This will allow you to manage your company’s finances, receive payments, and pay expenses. Here’s what you need to know.

Choosing a UK Bank

As an Australian resident, you have several options for opening a UK business bank account. Many major banks, such as Barclays, HSBC, Lloyds, and NatWest, offer accounts for international businesses.

When choosing a bank, consider factors like fees, online banking capabilities, and international transfer options. Some banks may require you to visit a branch in person, while others allow you to apply online.

Required documentation

To open a UK business bank account, you’ll typically need to provide:

• Proof of identity (such as a passport)
• Proof of address (such as a utility bill)
• Company documentation (certificate of incorporation, articles of association)
  Personal and business information for directors and shareholders

Requirements may vary between banks, so it’s best to check with your chosen institution for their specific list.

Opening your account

The process of opening a UK business bank account can take several weeks, as banks need to conduct due diligence checks. You may need to provide additional information or documentation during the application process.

Be prepared to answer questions about your business, its purpose, and your role as an Australian resident. Clear communication and thorough record-keeping can help streamline the process.

Managing your account from Australia

Once your UK business bank account is open, you can manage it online from Australia. Most UK banks offer comprehensive online banking platforms and mobile apps, allowing you to view transactions, make payments, and transfer funds internationally.

Keep in mind that you may face fees for international transfers and currency conversions. Consider these costs when budgeting and planning your company’s finances.

Navigating UK tax requirements for your company

As an Australian resident running a UK limited company, it’s crucial to understand and comply with UK tax requirements. Failing to do so can result in penalties and legal issues. Let’s look at the key taxes you’ll need to navigate.

Corporation tax

All UK companies are subject to Corporation Tax on their profits. The current rate is 19%, and you’ll need to register for Corporation Tax within three months of starting business activities.

To stay compliant, you’ll need to keep accurate accounting records, prepare annual accounts, and file a Company Tax Return with HM Revenue and Customs (HMRC). Consider working with a UK accountant to ensure you meet all requirements.

Value Added Tax (VAT)

If your company’s annual turnover exceeds £90,000, you’ll need to register for Value Added Tax (VAT). VAT is a consumption tax charged on most goods and services in the UK, with a standard rate of 20%. A new VAT threshold came into effect in the UK from 1st May 2024. 

Once registered, you’ll need to charge VAT on your sales, file VAT returns, and pay any VAT owed to HMRC. This can be a complex process, so seeking guidance from a tax professional is advisable.

PAYE and National Insurance Contributions

If your company employs staff in the UK, you’ll need to operate a Pay As You Earn (PAYE) system and make National Insurance Contributions. PAYE involves deducting Income Tax and National Insurance from your employees‘ salaries and paying it to HMRC.

As an employer, you’ll also need to make an employer’s National Insurance Contributions. The rates and thresholds for these contributions can change, so it’s important to stay up-to-date with the latest information.

Filing tax returns

Running a UK company involves filing various tax returns, including:

Company Tax Return (for Corporation Tax)
VAT returns (if registered for VAT)
PAYE returns (if employing staff)

Keeping accurate records and submitting tax returns on time is essential to avoid penalties. A UK accountant can help ensure you meet all deadlines and requirements.
As an Australian resident, you may also need to declare any income earned from your UK company on your Australian tax return. Seek advice from a tax professional to understand your obligations in both countries.

Establishing a registered office address in the UK

When setting up a UK company as an Australian resident, one of the key requirements is establishing a registered office address.

This is the official address where all legal correspondence from Companies House and HMRC will be sent. It’s important to note that this must be a physical address located within the UK – a PO Box simply won’t cut it.

But what if you don’t have a physical presence in the UK? That’s where virtual office services come in handy. These providers offer a legitimate UK address that you can use as your company’s registered office, along with mail forwarding and other handy services.

It’s a smart solution for international business owners who want to maintain a professional UK presence without the overhead of a physical office.

Legal requirements

The registered office address is a legal requirement for all UK companies, as outlined in the Companies Act 2006. It’s the official address where important documents like annual accounts and confirmation statements must be sent. Failing to provide a valid registered office address can result in penalties and even the striking off of your company from the register.

Using a virtual office

For Australian residents setting up a UK company, using a virtual office service is often the most practical and cost-effective option. Providers like Your Virtual Office London and Regus offer UK address services, along with additional perks like meeting room access and telephone answering.

When choosing a virtual office provider, look for one with a reputable business address in a location that aligns with your company’s image.

Changing your registered office address

If you need to change your company’s registered office address down the line, it’s a relatively straightforward process. You’ll need to notify Companies House of the change within 14 days, which can be done online through the Companies House website.

Just be sure to update your company’s stationery, website, and any other materials that list your registered office address to avoid any confusion.

Complying with UK Company Law and Regulations

While the thought of navigating a foreign country’s corporate laws may seem daunting, with a bit of research and the right professional guidance, you can ensure your company remains compliant.

One of the key obligations for UK companies is filing annual accounts and confirmation statements with Companies House. These documents provide a snapshot of your company’s financial health and ensure that the public record is up to date.

Failing to file these documents on time can result in penalties and even legal action against your company or its directors.

Annual accounts and confirmation statements

All UK companies must file annual accounts with Companies House, regardless of whether they are trading or dormant. These accounts include a balance sheet, profit and loss statement, and notes to the accounts.

The specific requirements vary depending on your company’s size and structure, but most small companies can file abbreviated accounts. In addition to annual accounts, UK companies must also file a confirmation statement (formerly known as an annual return) at least once every 12 months.

This document confirms that the information held by Companies House about your company is accurate and up to date. It’s a relatively simple process that can be completed online through the Companies House website.

Record keeping

Proper record keeping is essential for staying compliant with UK company law. You must keep accurate records of your company’s financial transactions, including invoices, receipts, and bank statements. These records must be kept for at least six years, and failure to maintain adequate records can result in penalties and legal action.

It’s also important to keep minutes of board meetings and resolutions, as well as a register of directors and shareholders. These records demonstrate that your company is being run properly and in accordance with its articles of association.

Changes to company details

Whenever there are changes to your company’s details, such as the registered office address, directors, or shareholders, you must notify Companies House within 14 days. Most changes can be reported online through the Companies House website, and failure to report changes promptly can result in penalties.

As an Australian resident, it’s particularly important to stay on top of changes to your company’s details, as you may not be as readily available to sign documents or attend meetings in person. Consider appointing a UK-based company secretary or using a professional service to help manage these administrative tasks.

Growing your UK business as an Australian resident

Once you’ve successfully navigated the process of setting up and registering your UK company, it’s time to focus on growth. As an Australian resident, you may face some unique challenges when it comes to expanding your business in the UK market, but with the right strategies in place, you can thrive.

One of the keys to success is developing a deep understanding of the UK market and tailoring your approach accordingly. This means conducting thorough market research, identifying your target customers, and adapting your products or services to meet their specific needs and preferences.

Marketing strategies

To reach and engage with your target audience in the UK, you’ll need to develop a comprehensive marketing strategy.

This may include a mix of online and offline tactics, such as social media marketing, content marketing, email campaigns, and even traditional print or broadcast advertising.
One effective approach is to partner with local influencers or thought leaders in your industry.

These individuals can help you gain credibility and exposure within the UK market, and their endorsement can be a powerful way to attract new customers. Attending industry events and trade shows can also be a great way to network and showcase your offerings to potential clients.

Building a UK customer base

Building a strong customer base is essential for the long-term success of your UK business. This means not only attracting new customers but also retaining and delighting existing ones.

Focus on providing exceptional customer service, gathering feedback, and continuously improving your products or services based on customer needs and preferences.

One effective way to build customer loyalty is through personalised communication and targeted offers. Use customer data and insights to segment your audience and deliver relevant, tailored messages that resonate with their specific interests and needs.

Implementing a customer loyalty program can also be a powerful way to incentivize repeat business and encourage word-of-mouth referrals.

Expanding your team

As your UK business grows, you may need to expand your team to keep up with increasing demand. While you can certainly manage some aspects of your business remotely from Australia, having a local presence can be invaluable for building relationships and providing on-the-ground support.

Consider hiring UK-based employees or contractors to help with various aspects of your business, such as sales, marketing, customer service, and operations. When building your team, look for individuals who not only have the necessary skills and experience but also align with your company’s culture and values.

As an Australian resident, it’s important to familiarise yourself with UK employment laws and regulations to ensure compliance. This includes understanding requirements around contracts, minimum wage, holiday entitlements, and pension contributions. Working with a local HR consultant or legal professional can help you navigate these complexities and avoid any potential pitfalls.