Britain is a beautiful country to invest in for foreign entrepreneurs to get a business off the ground. The UK has the best for entrepreneurs as it has a healthy economy, low interest rates, and a very supportive government. For people who are interested in setting up a business in the UK, we will help you to cover all the bases, from the choice of business model to the legal process and visa options.
1. Choose Your Business Structure
The first thing to do if you want to open a business in the UK is to select the right structure. These are the most frequent types of businesses:
- Sole Trader: A very basic system for those working on their own. You are the sole proprietor and you get all the revenue but you are also personally liable for any debts.
- Collaboration: A company operated by two or more people. They are partners in mutual gain and loss, and all are accountable for each other.
- Limited company (Ltd): Most used by small and medium enterprises. There is no private liability, that is, no liability of owners for debts of companies. But it comes with more paper and rules.
- Limited Liability Partnership (LLP): A cross between partnership and limited liability company. It provides very little liability protection and partners have some share of the profit and responsibility.
- Branch Office: If you have an already established company abroad, then you can open a branch office in the UK. It is part of your parent company.
- Your company needs the right business form for growth, taxation, and compliance purposes. Remember your business objectives and goals in the long run before you decide.
2. Setting Up Your Company in the UK.
After you have settled on your company structure, it is time to register your company. You register as a Limited Company or LLP at Companies House, the UK’s official company registrar. Here’s how:
- Choose a company name: Your business name needs to be distinct and in line with UK naming conventions. Don’t use constrained words such as “royal” unnecessarily.
- Hire Directors: You should have one director. A company secretary is optional.
- Choose the shareholders: If you’re forming a limited company, choose how many shares to issue and who is the shareholder.
- Register your company online: Register your company online for £50. The information you’ll need is your company name, business activity (with a Standard Industrial Classification number), and personal information of directors and shareholders.
- Get your Certificate of Incorporation: After registering you’ll be issued a Certificate of Incorporation, which means your business is registered in law.
3. Understand Legal Requirements
If you are a UK business owner, you have some legal obligations:
- Licenses: Some businesses need certain permits or licenses to work as per the industry.
- Data Protection: In case you are working with customer data you must have a General Data Protection Regulation (GDPR).
- Health and Safety: You should have UK health and safety in your workplace.
- Immigration Law: You need to be legally able to work in the UK, even if you’re employing people. Also, if you are an expat entrepreneur, you need a business visa.
- By getting a legal professional to navigate you through these regulations without paying a fine or penalty.
4. Set Up Business Banking
You’ll need a business bank account for payment, worker wages, and your taxes. To open an account:
- Choose a bank that best fits your company.
- You’ll require proof of name, office address, and incorporation.
- Open a bank account after you have come to the UK, as most banks ask for an in-person ID.
5. Manage Taxes and Accounting
Taxes and accounting, after you’ve got your company up and running:
- Register with HMRC: This is the tax department in the UK. You may also have to register for Corporation Tax, VAT, and PAYE (if you have staff) depending on your business.
- Expense Tracker: Maintain detailed track of all the transactions for six years or more.
- Take an Accountant: Your accountant can help you with taxes, and returns and also get your company compliant with the UK tax regulations.
6. Hiring Employees
Employers: You must follow the following UK employment laws if you are looking to hire people:
- Contracts of Employment: You have to offer your employees written contracts detailing their obligations and rights.
- Right to Work: Before you take a hire, check if they have a right to work in the UK.
- Salary & Perks: Make sure you’re on par with the minimum wage, working time and benefits like sick days and holidays.
- An HR professional or employment lawyer can make sure your company follows all the employment laws.
7. Explore Immigration Routes for Entrepreneurs
And if you’re a foreign businessman, you may require a visa to work and live in the UK. Here are some of the most popular pathways for entrepreneurs to migrate to:
- Global Business Mobility Route: The visa lets skilled laborers come to the UK to establish or run a business.
- Growth worker visa: For staff that is drafted into the UK to start a new branch.
- Senior/Specialized Worker Visa: For those who are moving to a UK Office.
- Graduate Trainee visa: For employees of the graduate program.
- Secondment Worker visa: If you are an employee on a valued job in the UK.
- Self-Sponsored Visa: Flexible route for entrepreneurs to establish a business and sponsor themselves for a Skilled Worker visa. This option grants permanent settlement 5 years later.
8. Create a Business Plan
You need a good business plan to get off the ground. It’s what you use to raise funds and forecast your company’s development. Your business plan should include:
- Market Analysis: Know who’s the market and who’s out there.
- Estimate Revenues, Expenses, and Profits: Calculate your revenues, costs, and profits.
- Marketing: Determine how you’ll get customers and advertise your company.
- Activation Plan: Describe how your business is going to operate every day.
The UK Company Formation Process Is Easy If You Do It The Right Way. With the correct business model, registration with the right authorities, and lawfulness you can create a successful UK business. So whether you need immigration, business registration, or legal guidance, Law and Visas is the expert to help get your business off the ground.
