There is no legal necessity for a director of a UK corporation to live or work in the UK. They do not even have to be British citizens. The same is true for corporate secretaries, stockholders, and People with Significant Control (PSCs). However, there are specific eligibility limitations for UK company directors, as well as geographical requirements for Company Formation In UK, which we shall discuss further below.
Who may be a director of a corporation in the United Kingdom?
According to the Businesses Act of 2006, all limited companies in the United Kingdom must have at least one director who is a “natural person.” This phrase refers to an individual rather than a ‘legal person’ such as a limited corporation or similar corporate organization. A ‘natural person’ must be at least 16 years old to be eligible to be a company director:
- A person may not be appointed a director of a company until he has acquired the age of 16 years
- not be an ineligible director
- not be an unliquidated bankrupt
- not work as a corporation auditor
What are the geographical criteria for Business Formation In UK?
Address of the registered office
All corporations in the United Kingdom must be registered with Companies House. They must have a registered office address in England, Wales, Scotland, or Northern Ireland to do so.
A actual postal address where official letters can be sent must be provided for the address. In reality, a lot of firms utilize the registered office location of a company formation agency since it gives the company a professional appearance and helps to safeguard the anonymity of the persons who own and administer the company.
Bank accounts for businesses
Companies located in the UK are not required to trade using a UK bank account. However, it is strongly advised to open a UK bank account in order to ease easy business transactions with British clients and customers and to make access to credit more convenient. Trading in the UK using a non-UK bank account typically incurs a variety of transaction fees, currency translation expenses, etc.
Typically, international directors will need more than just a registered office location to obtain a UK bank account. To create a UK business bank account, at least one of the company directors must reside in the country, although various banks may have different regulations; it is wise to verify.
Even if they just spend a brief amount of time in the UK, any business directors based outside of the UK may still be required to pay income tax there. Subject to the laws against double taxation, this might be in addition to the income tax in their home country. Additionally, we suggest hiring an accountant to manage your tax matters and provide you with professional assistance.
The Companies Act of 2006 and all other UK laws do not currently contain any provisions requiring a director to maintain residence in the United Kingdom or to travel here on a regular basis for Business Formation In UK. Similar to this, whether a foreign person resides in the UK or overseas, nothing prevents them from serving as a director of a UK firm.