An entrepreneur who is not tax resident in the UK may benefit from setting up their company in another jurisdiction. This strategy can provide access to new markets, help structure an international business, or bring the company closer to its clients, partners, and investors.

But what is the best country to set up a company as a UK non-resident?

The answer depends mainly on the business activity, the country where the director is resident, the location of clients, banking requirements, and how the company will actually be managed.

Among the jurisdictions frequently considered by international entrepreneurs are the United Arab Emirates, Singapore, Hong Kong, and Cyprus. The UK itself may also remain relevant in certain circumstances.

However, the choice should not be based solely on taxation. Substance, the company’s tax residence, and banking compliance are equally important.

Being a UK Non-Resident: Why Does This Change the Choice of Jurisdiction?

An entrepreneur who lives outside the UK can perfectly well set up a company in another country.

However, two elements must be distinguished:

The entrepreneur’s tax residence

and

the company’s tax residence.

A foreign company may, in certain circumstances, be considered UK tax resident if its central management and control are exercised in the UK. HMRC specifies that a company not incorporated in the UK may be UK resident when its central management and control is located in the UK, subject in particular to the applicable treaty rules.

In other words, setting up a company abroad while continuing to manage it as a UK business from the UK is not necessarily sufficient to obtain foreign tax residence.

This distinction is fundamental for any business structure for UK non-residents.

What Is the Best Country for a UK Non-Resident?

There is no single jurisdiction that is ideal for every entrepreneur.

Jurisdiction	Suitable Profile	Main Advantage
🇦🇪 United Arab Emirates	International entrepreneurs	International environment
🇸🇬 Singapore	Tech, services and Asia	Credibility and stability
🇭🇰 Hong Kong	Trade and Asia	International platform
🇨🇾 Cyprus	European entrepreneurs	EU and international framework
🇬🇧 United Kingdom	Activities linked to the UK market	Reputation and ecosystem

The right choice depends above all on where the business is actually carried out.

United Arab Emirates: A Popular Option Among International Entrepreneurs

The United Arab Emirates are particularly considered by entrepreneurs who no longer reside in the UK and wish to establish an international base.

The UAE offers various Free Zones and an environment suited to service businesses, consulting, technology, trading, and holding companies.

Since the introduction of Corporate Tax, the general rate is 9% on the portion of taxable income exceeding AED 375,000. Certain Free Zone companies may benefit from a 0% rate on their Qualifying Income if they meet the applicable conditions.

For a UK non-resident entrepreneur, the UAE can be particularly attractive when there is a genuine presence and effective management in the country.

Suitable profiles:

• international consultants;
• digital entrepreneurs;
• holding companies;
• service companies;
• entrepreneurs who have left the UK;
• businesses with an international client base.

However, the choice of Free Zone should be made according to the business activity and applicable tax regime, rather than based solely on the promise of a 0% rate.

Singapore: A Strong Jurisdiction for International Activities

Singapore can be an excellent option for UK non-resident entrepreneurs who work with clients or partners in Asia.

The jurisdiction benefits from a strong international reputation and a well-structured regulatory environment.

The standard Corporate Income Tax rate is 17%, applicable to both local and foreign companies.

Singapore may be particularly suitable for:

• technology companies;
• consultants;
• B2B service companies;
• international trading companies;
• regional holding companies.

The main advantage of Singapore is therefore not necessarily the lowest tax rate, but rather the combination of credibility, stability, and access to the Asian ecosystem.

Hong Kong: A Solution for Entrepreneurs Focused on Asia

Hong Kong is another interesting option for an entrepreneur who is no longer UK resident and whose business is connected to Asia.

The jurisdiction is particularly well known for its international business environment and its role as a financial centre.

The Profits Tax regime provides, in particular, for a rate of 8.25% on the first HK$2 million of assessable profits, followed by 16.5% above that threshold for companies falling under the two-tiered regime.

Hong Kong may be considered for:

• international e-commerce;
• trade with Asia;
• consulting;
• B2B services;
• holding companies;
• financial or commercial activities, subject to any applicable regulatory authorisations.

For an entrepreneur who has left the UK but wishes to maintain an international business focused on Asia, Hong Kong can be an attractive alternative to a UK structure.

Cyprus: A European Option for International Entrepreneurs

Cyprus may also be considered by UK non-resident entrepreneurs who wish to maintain a presence within the European environment.

Its geographical location, international environment, and membership of the European Union can be attractive for certain activities.

The jurisdiction may in particular be considered for:

• service companies;
• holding companies;
• international activities;
• businesses working with Europe;
• entrepreneurs who are resident in another European country.

However, the suitability of Cyprus depends on the entrepreneur’s personal circumstances and the countries with which the business conducts its operations.

Should You Keep a UK Company?

Being a UK non-resident does not necessarily mean that you need to close or avoid having a UK company.

The UK may remain relevant when:

• the main clients are British;
• the business is commercially connected to the UK;
• the partners are primarily British;
• the entrepreneur wishes to maintain a British commercial image;
• the company has genuine business activity in the UK.

A UK company can therefore be perfectly suitable for an entrepreneur living abroad.

The question to ask is not simply:

“Can I set up a company outside the UK?”

but rather:

“Where should this company be established so that it reflects my actual business activity?”

Offshore Company for UK Residents: Be Careful About Tax Residence

The expression “offshore company for UK residents” is frequently searched for, but it can be misleading.

A foreign company owned by a person who is UK tax resident may be subject to various UK tax rules, including the rules relating to Controlled Foreign Companies (CFCs) in certain circumstances. HMRC defines a CFC in particular as a non-resident company controlled by one or more UK-resident persons, subject to the applicable rules.

Furthermore, a foreign company may be taxable in the UK if it carries out certain activities there or has a taxable presence. HMRC states, in particular, that a non-resident company may be subject to Corporation Tax when it carries on a business in the UK through a permanent establishment, or in certain circumstances involving UK property.

It is therefore essential to distinguish between:

UK non-resident

→ an entrepreneur who is no longer UK tax resident

and

foreign company owned by a UK resident

→ a completely different tax situation.

Which Business Structure Should You Choose?

For an international entrepreneur, several structures may be considered.

Structure 1: Single operating company

Entrepreneur → Foreign Company → Business Activity

This solution may be sufficient for a consultant, agency, or digital business.

Structure 2: Holding company + operating company

Entrepreneur → Holding Company → Operating Company

This structure may be considered when the entrepreneur owns several businesses or wishes to separate ownership from operations.

Structure 3: Holding company + international subsidiaries

Entrepreneur → International Holding Company → Subsidiary A / Subsidiary B / Subsidiary C

This structure may be relevant for a group operating in several countries.

The choice depends on the size of the project and should not be made unnecessarily complex.

How to Choose the Best Country as a UK Non-Resident

Before setting up a company, it is recommended to analyse six criteria.

1. Your Current Tax Residence

This is the first element to determine. Physically leaving the UK is not always sufficient to determine tax status.

2. Where the Business Is Managed

Where are decisions made? Where do the directors work? Where is the company’s actual management located?

3. Where Your Clients Are Located

A business working primarily with UK clients may have different requirements from a company selling exclusively in Asia or the Middle East.

4. Banking Requirements

The bank account must be consistent with the business activity, the currencies used, and the countries in which payments are made.

5. Taxation

It is necessary to analyse not only corporate tax, but also dividends, withholding taxes, capital gains, and the rules applicable to the shareholder.

6. Substance

An international structure must be consistent with the reality of the business. Simply setting up a company in a foreign jurisdiction is not necessarily sufficient to shift the company’s tax residence.

Why Get Support When Setting Up an International Company?

For a UK non-resident entrepreneur, the difficulty is generally not finding a country in which to set up a company.

The challenge is finding the jurisdiction that matches the individual’s residence, business activity, clients, banking requirements, and international strategy.

ICD Fiduciaries supports international entrepreneurs with company formation, international structuring, and the search for professional banking solutions across different jurisdictions.

The objective is to build a coherent structure rather than offer a standardised offshore company.

FAQ – Business for UK Non-Residents

What is the best country to set up a company as a UK non-resident?

The United Arab Emirates, Singapore, Hong Kong, and Cyprus may be attractive depending on the business activity and the entrepreneur’s tax residence. The UK may also remain relevant for a business that is primarily focused on the British market.

Can a UK non-resident set up a company abroad?

Yes. An entrepreneur who is not UK tax resident can set up a company in another jurisdiction, subject to complying with the rules of the chosen country and those of their country of tax residence.

Does an offshore company make it possible to avoid UK tax?

Not automatically. The company’s tax residence, its place of management, activities carried out in the UK, and the tax residence of its owners may all have tax implications.

Do you need to close your UK company after leaving the UK?

Not necessarily. A UK company may remain relevant if it has genuine business activity, clients, or partners in the UK.

What is the best jurisdiction for a British entrepreneur living abroad?

This depends on their new country of residence, business activity, and markets. The UAE may be considered for an international base, Singapore or Hong Kong for Asia, and Cyprus for certain European structures.

Conclusion

The best country to set up a company as a UK non-resident depends above all on the economic reality of the project.

The United Arab Emirates can be particularly attractive for international entrepreneurs with a genuine presence in the region. Singapore and Hong Kong are strong options for Asia-focused activities. Cyprus may be considered for certain European structures, while the United Kingdom remains relevant when the business retains a significant economic connection with the British market.

For company formation for UK non-residents, the main objective should be to build a structure that is coherent in terms of tax residence, effective management, business activity, banking, and jurisdiction.

Setting up an offshore company may form part of this strategy, but it should never be regarded as an automatic tax solution.