HomeNewsUK offshore and onshore companies.Which Is Best for Non-Residents?

UK offshore and onshore companies.Which Is Best for Non-Residents?

Originally published in October 2013. Updated December 2025 for accuracy and relevance.

UK Offshore or Onshore Company Formation: Which Is Best for Non-Residents?

If you’re a non-resident considering setting up a business in the United Kingdom, you’ve likely come across terms like UK offshore company, UK onshore company, or non-resident company formation. These concepts can be confusing — especially because the UK does not offer a classic “offshore regime” like many island jurisdictions.

In this guide, we break down the differences between UK onshore company formation and what is often (incorrectly) referred to as “UK offshore”, helping you choose the structure that best aligns with your goals.

UK Onshore Company Formation (UK Limited Company – LTD)

A UK Limited Company is the most common structure used by both residents and non-residents. Here’s what it involves:

The company is registered in the UK and governed by UK company law.
Corporate information (directors, shareholders, registered office) is publicly available through Companies House.
Profits are generally subject to UK Corporation Tax.
It is not an offshore company — but it remains extremely popular among non-resident entrepreneurs.

Why non-residents choose a UK onshore company:

Strong international credibility
Access to UK banking and fintech accounts
Excellent jurisdiction for e-commerce, consulting, SaaS, and digital services
Fast and affordable incorporation

👉 Learn how we can help:
UK Company Formation

So, What Is Considered “Offshore” in the UK Context?

The UK does not provide an official “offshore company” structure like the BVI, Seychelles, Cayman Islands, or Belize.
However, a UK company may be treated as non-resident for tax purposes, depending on management and control.

This is where many people—especially non-residents—get confused.

Below are the key areas to understand:

1. Tax Residency Rules (Management & Control)

In the UK, tax residency depends on where the company is managed and controlled — not just where it is registered.

This means:

If a UK company is genuinely managed from outside the UK, and
its income is generated outside the UK,
then it may not be subject to UK corporation tax.

This is sometimes described as a kind of “offshore treatment,” though it is not a formal offshore regime.

⚠️ IMPORTANT:
Tax residency rules are complex, and incorrect structure may result in double taxation or penalties.
Always obtain advice from a qualified tax professional.

2. UK Non-Domiciled (Non-Dom) Status

Non-dom individuals can benefit from the remittance basis, meaning:

They are only taxed on income brought into the UK
Foreign income kept outside the UK may remain untaxed

This can be strategically used when operating a UK company with profits generated abroad.

However, rules on non-dom status change frequently, so professional planning is essential.

3. Using a UK LLP as a Hybrid “Offshore-Style” Structure

A UK Limited Liability Partnership (LLP) can, in some cases, operate similarly to an offshore pass-through entity.

If:

All partners are non-residents, and
The LLP’s operations are conducted outside the UK,

then the LLP may not be subject to UK tax on its profits.

This structure is often used for international trading, consulting, or holding income from overseas operations.

⚠️ However:
LLP structures require careful planning to avoid creating accidental tax residency.

👉 Learn more:
UK LLP Formation

Key Considerations for Non-Residents

No matter whether you choose a UK LTD or LLP, consider the following:

✔ Tax implications

You must understand how the structure will be taxed in both:

The United Kingdom
Your own country of tax residence

👉 Professional tax planning is essential for legally minimising liabilities.

✔ Substance & Economic Presence

Depending on your structure and tax residency goals, you may need to demonstrate:

A real operational presence
A UK address
Local staff
Business activity in the UK

Lack of substance may lead to reclassification of tax residency.

👉 Need a registered address?
UK Registered Office Service

✔ Compliance Requirements

UK companies must adhere to strict regulations, including:

Annual accounts
Confirmation statements
AML/KYC compliance
Record-keeping obligations

Failure to meet UK compliance rules can result in penalties or company dissolution.

👉 We can assist with:
Company Secretarial & Compliance Services

Which Option Is Best for You — UK Offshore or Onshore Company Formation?

The answer depends entirely on your:

Tax residency
Business activities
Target markets
Preferred level of privacy
Banking requirements
Country-of-residence tax rules

✔ Choose UK Onshore (LTD) if you want:

UK banking access
International credibility
Transparent structure
Easy incorporation

✔ Consider UK LLP (Hybrid Approach) if you want:

Pass-through taxation
No UK tax (if structured correctly and non-resident)
Flexibility for international clients

✔ “UK offshore” is NOT an official structure

…but certain tax-residency-based setups can function similarly, with proper planning.

Final Thoughts

Deciding between UK offshore or onshore company formation as a non-resident requires understanding your business model, tax obligations, and long-term goals. While the UK does not offer a typical offshore regime, several legal structures can optimise tax efficiency and maintain credibility — if implemented correctly.

To ensure compliance and avoid costly mistakes, always seek professional guidance.

At Bris Group, we specialise in:

✔ UK company formation
✔ UK LLP incorporation
✔ Non-resident structures
✔ International tax planning
✔ Virtual office services
✔ Corporate compliance & annual filings

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If you wish to register the UK offshore company our team will be happy to help you there and provide you with more detailed information, you can contact us at [email protected]

UK offshore

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