Governing a UK Entity from abroad has become increasingly feasible over the last five years, as many professionals decided that office life just doesn’t cut it for them. During this same period, remote collaboration gained widespread acceptance as a legitimate way to interact with business partners, colleagues, and clients. All of a sudden, sitting on a beach in Bali with a laptop became a real possibility rather than just an escapist fantasy.
Those cocktails on the beach taste even better if you are the boss, running your own UK business while residing abroad. On the other hand, you need to be prepared for some unexpected challenges in the legal, financial, and organisational sphere.
Legal Requirements for Running a Business from a Foreign Country
If you decide to move to a picturesque country like Indonesia and keep running an existing UK entity, you first must ensure you are in possession of proper work authorisation. Special digital nomad visa are available for numerous nations, and getting one shouldn’t be a problem for a successful small business owner with a steady income. However, when Governing a UK Entity from abroad, securing a long-term visa is hardly just a formality.
The next big issue is where you are going to pay taxes. Despite the company being subject to taxation in the UK, a long term stay abroad could quality you as a tax resident of another country. That’s why you need to think hard and long how to organise things and avoid having to pay the taxes twice.
In case your company owns any properties in the United Kingdom, you must have your ownership verified by a registered agent and reported to the Register of Overseas Entities. This should shield you from restrictions that may be imposed on foreigners controlling British assets.
Managing Communications Across Time Zones
Having all stakeholders in lockstep is no joke when your work hours don’t match the UK standard. Modern technology makes this practically feasible, but it’s up to you to adopt new workflows and communication procedures that support your virtual presence. Successfully Governing a UK Entity from abroad requires discipline and consistent adherence to those processes.
Since it can be difficult to get all team members and clients to adhere to your clock, it’s likely you will end up being the one staying up long into the night to attend a key meeting. That might leave you too tired to hit the beach in the morning, but that’s the cost of being a high-end digital nomad.
Keeping the Money Flowing Across Borders
Things get sensitive whenever money is involved, especially if you are moving large sums across national borders. While you may use a UK bank account to manage your cash flows for a short while, at some point it may become prudent to switch to local banking options.
To do that, you might need to prove that you are a legitimate business owner and that your money doesn’t originate from any suspicious activity. Presenting documents such as Certificate of Incorporation or VAT Registration Certificate should do the trick, although they must be translated into local language and confirmed by a UK apostille company. Proper documentation is a crucial part of Governing a UK Entity from abroad, even if it involves a significant amount of paperwork.
How Practical Is It to Run a UK Company from Afar?
Despite all the hoops to jump through, numerous business owners managed to move to a place like Bali and continue earning without skipping a beat. How realistic such a thing is for you ultimately comes down to the type of work you are doing and how comfortable you are dealing with the unknown.
In professions where physical presence in the workplace is optional, agile and adaptable nomads are usually able to run things smoothly from anywhere on the planet. Still, Governing a UK Entity from abroad requires considerable effort, creativity, and realistic expectations — it won’t always be all sun and waves.
