Limited Company With a Foreign Partner

Limited Company With a Foreign Partner

What you need to look out for if one of your directors is based abroad.

By Marcia Smith

The nature of a limited company means that its directors are personally accountable for any debts or liabilities that it incurs. Therefore, the main consideration when setting up a limited company in the UK with a foreign partner is what will happen should the unthinkable occur and the company goes bust.

If your business partner becomes unreachable, the sole responsibility for any liabilities could fall on your shoulders. Trust is key for any business partnership, so you should be able to feel you can fully rely on your partner even if they’re overseas.

Before entering into any partnerships with foreign investors, you should always seek legal advice from a firm that’s experienced in commercial law.