How to Start a Company in the UK While Living in Spain

Starting a company in UK from Spain is becoming an increasingly popular option among professionals, entrepreneurs, and freelancers who are looking to expand or take advantage of a more agile business environment. Although it may initially seem complicated due to not residing in the country, the process is actually relatively straightforward, accessible, and in many cases can be managed entirely online.

In this article, we’ll walk you through the steps required to register your company in the UK, the type of company that best suits your situation, and the legal aspects you need to consider if you live in Spain.

Why Start a Company in UK from Spain?

The main reason is that the UK offers a business-friendly environment. In this article we explain the advantages of setting up a company in the UK. Some notable benefits include:

• Fast and simple procedures: Registration is done online and can be completed in less than 24 hours.

• Competitive taxation: The corporate tax rate is 25%, with some exceptions and reduced tiers.

• Professional image: A registered LTD company conveys seriousness and trust on an international level.

• Access to global markets: Operating from the UK opens doors to clients and partners worldwide.

What Type of Company Can You Register?

The most common — and generally most suitable — option if you’re living outside the UK is a Private Limited Company (LTD), a limited company by shares.

This type of business has its own legal personality, meaning financial obligations fall on the company itself, not you personally. Additionally, you can be both the sole director and the sole shareholder, giving you full control without the need for partners. In this article we explain everything you need to know about the LTD structure.

What Do You Need to Create an LTD from Spain?

Even if you live outside the UK, you can start an LTD as long as you meet the following basic requirements:

• A unique company name that is not already registered.

• A registered address in the UK (can be provided by a formation agency or professional office).

• At least one director (you can be the director).

• At least one shareholder (again, you can be the shareholder).

• Founding documents, such as the Memorandum and Articles of Association.

You don’t need a UK National Insurance number or a physical UK bank account to begin the process.

Steps to Start a Company in the UK While Living in Spain

1. Choose a Company Name

It must be unique and comply with Companies House regulations. You can check availability on the official website.

2. Get a Registered Address in the UK

Since you don’t reside in the UK, you are required to have a UK postal address. There are professional services that provide legal business addresses, and often include accounting support.

3. Register with Companies House

The process is fast, affordable (around £12 if done online), and can be completed by you or via an agent. Once approved, you’ll receive the Certificate of Incorporation, which certifies the legal existence of your company.

4. Apply for Your UTR Number

This is your company’s tax identification number, needed for submitting tax returns. HMRC (UK tax authority) sends it automatically by post after your company is formed.

5. Consider Opening a Business Bank Account

Although it’s not mandatory to open an account with a UK bank, you do need a business account to receive payments. Many fintech platforms — such as Wise Business, Revolut Business, or Payoneer — allow you to open multi-currency accounts valid for international operations.

Tax and Accounting Obligations

Once your company is set up, you’ll have certain legal obligations with HMRC and Companies House, including:

• Submitting annual Corporation Tax returns.

• Filing annual accounts for the company.

• Submitting the Confirmation Statement (a basic data update) every 12 months.

• Registering for VAT if your annual turnover exceeds the current threshold (currently £90,000).

It’s highly recommended to work with an accountant who specializes in UK taxation, especially if you’re operating from abroad. This will help you stay compliant and optimize your financial management.

Conclusion

Starting a company in the UK while living in Spain is not only possible, but it can offer many advantages if you’re looking to operate with a professional, streamlined, and globally connected business structure. With a well-formed LTD and the right support, you can start invoicing internationally, attract new clients, and manage your operations more efficiently.

You can also consult your business proposal with advisors specialized in international taxation and corporate law. We recommend this website where you can get guidance and support on how to create your company in the UK. Having a solid structure from the beginning can make a significant difference in the success of your project.