When does a company becomes non-UK resident?

Here’s a good rule of thumb to follow: a company is resident where it is incorporated, irrespective of where it is operating from currently. So, for example, let’s say a company is incorporated somewhere in Asia, such as Hong Kong or Singapore. But if it has its central management and control operated from another region – the UK, for instance – it will be considered a resident in the UK and be liable to tax in the same.

Therefore, the key point to remember when determining whether a company is non-UK resident is where its central management and control is operated from.

Are there other ways to determine when a company becomes non-UK resident?

Well, at the moment, no.

Central management and control is considered as the absolute highest level for determining the above, as that is where the board sits and holds meetings. With that said, however, this test or measure is not conclusive in its own right.

If your company is considered a UK tax resident, it is still liable to CT (Corporation Tax) in the UK but on its global income and gains. On the other hand, if your company is not resident in the UK, it is liable to CT on the profits and gains realised within the UK only.

For the most part, UK incorporated companies are treated as UK tax resident. There is one exception to this general rule, however:

Companies resident in the UK under domestic law but treated as resident in another region or country under the latter’s DTT with the UK – are not to be treated as UK tax resident for the sake of UK domestic tax law.

In addition, and subject to the exception above, companies incorporated outside the UK are also treated as UK resident if their central management and control is within the same – just to reiterate what we stated earlier.

The Government is currently considering introducing rules which would make it possible for companies incorporated outside the UK to re-domicile to the UK.

Can a non-UK resident set up a company in the UK? Simple answer is Yes

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Another useful link from HMRC  https://www.gov.uk/guidance/register-a-non-resident-company-for-corporation-tax