Starting a business in the UK is an exciting opportunity for international entrepreneurs. The UK is known for its strong economy, supportive business environment, skilled workforce, and modern infrastructure. Whether you’re thinking about opening a new business in 2024 or beyond, this guide will help you understand how to start a business in the UK, the right business structure for you, and how to get a UK business visa. If you need more details on business visas, you can always reach out to Law and Visas for expert advice.
Business Culture in the UK
The UK’s business culture has become more relaxed, especially with many professionals now working from home. However, punctuality, professionalism, and good communication are still very important. The UK values creativity and innovation, which makes it a great place for new businesses.
Who Can Start a Business in the UK?
Anyone from around the world can start a business in the UK, as long as they meet certain requirements:
- You need to have a valid UK business visa.
- You must meet the eligibility criteria for the visa.
- You need to be of “good character.”
If you have a unique, viable business idea, the Innovator Founder Visa might be the right option for you. If you already have a business abroad, the Global Business Mobility Expansion Worker Visa allows you to expand your business into the UK.
Types of Business Structures in the UK
When setting up a business in the UK, one of the first decisions you need to make is which type of legal structure to choose. Here are some common options:
- Sole Trader – The simplest structure. You run the business yourself and keep all the profits, but you are personally responsible for any debts.
- Partnership – Two or more people share responsibility for the business and its profits and losses.
- Limited Liability Partnership (LLP) – A partnership where partners have limited liability for the business’s debts.
- Private Limited Company (Ltd) – A popular option. The company is separate from its owners and offers limited liability.
- Public Limited Company (PLC) – A company that can offer shares to the public, but with stricter rules.
- Social Enterprise – A business focused on social or environmental goals. Profits are reinvested into these causes.
- Offshore Company – A company registered outside the UK but can operate in the UK, often offering tax benefits.
It’s a good idea to talk to an accountant or business advisor to choose the best structure for your business.
Steps to Start a Business in the UK as an Expat
Starting a business in the UK is straightforward. Here are the main steps:
- Create a Business Plan – This should outline your business goals, strategies, and financial projections. A good business plan is essential for securing funding and a business visa.
- Check Your Visa Eligibility – Make sure you qualify for a business visa. Law and Visas can help you find the right visa for your situation.
- Apply for Your Business Visa – You will need to apply for a business visa before starting your business.
- Choose Your Business Structure – Select the right legal structure for your business.
- Pick a Business Name and Address – Your business name must be unique and comply with UK rules. You also need a UK business address.
- Register with HMRC – You need to register your business with HMRC for tax purposes. If you’re starting a limited company, you also need to register with Companies House.
- Check for Special Requirements – Some businesses need specific licenses or must follow certain regulations.
If you want to start a non-profit business, you’ll need to register with the Charity Commission and meet additional regulations.
How to Get a Business Visa in the UK
To start a business in the UK, you need a valid business visa. Here are some common options:
Innovator Founder Visa
This visa is for entrepreneurs who want to set up a new and innovative business in the UK. To apply, you need:
- A business idea that is unique, viable, and endorsed by an approved body.
- A business plan that details your idea.
- The necessary documents and application fees.
Self-Sponsorship Route
This allows you to start a business in the UK and sponsor yourself for a work visa. The steps are:
- Set up your business in the UK.
- Apply for a sponsor licence.
- Sponsor yourself for a Skilled Worker visa.
Global Business Mobility Expansion Worker Visa
If you already own a business abroad and want to open a branch or subsidiary in the UK, this visa is for you. The steps are:
- Get a Certificate of Sponsorship from your business.
- Apply for the visa and pay the fee.
Managing Your Business in the UK
Once your business is up and running, there are a few key things to consider:
- Business Banking – Open a business bank account in the UK. It’s best to do this once you arrive in the UK to provide proof of identity and address.
- Taxes – Make sure you understand UK business taxes, such as VAT, corporation tax, and payroll taxes.
- Insurance – Get the right business insurance, including employer’s liability and public liability insurance.
- Hiring Staff – If you employ people, you need to follow UK employment laws, including contracts, wages, and taxes.
Getting Support and Advice
There are many resources in the UK to help new businesses, such as:
- GOV.UK – The UK government’s official website for business information.
- HM Revenue and Customs (HMRC) – For tax and registration details.
- Companies House – For company registration.
- British Chambers of Commerce – Offers networking and support for businesses.
- The King’s Trust – Helps young overseas entrepreneurs.
Starting a business in the UK is a rewarding opportunity with proper planning. By understanding the business culture, choosing the right legal structure, and securing a business visa, you can set up your business successfully. If you need assistance, reach out to Law and Visas for guidance on the best visa options and the legal steps for starting your business in the UK.
