Have you ever wanted to start a business in the UK? It may seem daunting at first if you’re a foreign person who wishes to do business in the UK, but it’s not so bad.
Globally, the United Kingdom is ranked as the sixth-largest economy.
It has always been an attractive country to start a business because it provides growth opportunities for everyone – no matter where they’re from or how much money they make.
With an economically sound, fully established legal infrastructure, and a wide-reaching consumer base, every aspiring entrepreneur longs to open up a business in the UK.
Various new changes have been occurring in the UK, making it difficult to open a business here.
But foreigners can own enterprises there now, with an appropriate plan and enough sense of optimism.
One of the difficulties immigrants face in the UK is the immigration system; changes to this system have resulted in people being unable to acquire the proper documentation needed to start a business there.
In this article, you will learn what it takes to set up a company in the UK for foreigners.
Let’s explore the process of acquiring a limited company, learn what it takes for foreign entrepreneurs to migrate here, and discuss all things that international business owners might find helpful.
Now, let’s discuss it in detail.
Is it possible for a non-resident individual to start a business in the UK?
Yes. It may seem like a shock to some, but international entrepreneurs can start businesses in the UK just as quickly as those who live here.
The only requirement is that they register their company to an address in the United Kingdom; this isn’t because of legitimacy purposes. It’s for accountability purposes and correspondence purposes.
Foreign nationals can easily find an address to register.
This can be anything from a purchased or rented property, a family member, a friend’s property, anyone who agrees to have your business registered to their address, or even a virtual office.
Can I make money through my UK company without a work visa?
A work visa gives you access to the UK job market. It allows you to earn money as employed by the UK job market. At the same time, you are enjoying all the perks that come with it.
You must have the proper visa – which is different from starting a business in the UK yet earns its rewards! There are many ways you can go about this.
First, you could start a company in the UK as an outsider, trading goods with them while maintaining your residence in another country.
For instance, let’s say you live in India and sell clothing – this could work well for you!
You can quickly start a business in the UK and register with Companies House, trading under your British brand.
The benefit of this company is that since you have an actual presence inside the country – even if it is just an address – any partnerships or negotiations will be done face-to-face rather than through digital correspondence.
Your registered UK business does not make it easier to trade within the UK because you can already sell to UK consumers from a company registered anywhere.
You are not just a foreigner doing business in a foreign country. You are an international businessman trading through the UK, increasing your domestic sales potential.
Another option would be to hire employees from within the United Kingdom who will earn wages through your company’s operations here in the UK.
You will share an equal percentage of their earnings which you could use for reinvestment or withdraw as profit.
As an employer, you cannot perform any duties about your company, but they can.
You will only be taxed on their earnings as any other business would, and corporations’ tax on business income. However, you will not be able to take a salary until revenue has been deducted.
Understand your Business Structure and What you Should do?
Before starting your business in the United Kingdom as a foreigner, you must find out what kind of businesses thrive after that, understanding the visa requirements.
Check out the legal requirements for each type of company and how taxes are paid.
When obtaining a visa for the UK, one must first go through the process of legally establishing a company. To do this, there are four main types of businesses in which one can establish:
- Sole trader
- Limited liability partnership (LP)
- Limited company
- Sole trader
Sole traders are the simplest type of business in the UK. There is no difference between yourself and your company when you are a sole trader. To start an enterprise as a sole trader in the UK, one must first register with HMRC before the end of the year.
A partnership business requires two or more people to manage it. It requires registration with the HMRC, and both parties need to be involved in registering the company.
- Limited liability partnership (LP)
Limited Liability Partnerships are partnerships where all partners share a degree of responsibility for the partnership’s liabilities. Limited Liability Partnerships allow for more than one individual to manage the business.
- Limited company
Limited companies are a type of general incorporation that limit the amount of liability undertaken by company shareholders. Limited liability means that company members or subscribers can’t go bankrupt no matter how much they invest in or commit to it.
Register and open a new business bank account!
The main point of opening a bank account as an immigrant is to optimize cross-border transactions and maximize efficiency in your business ventures in the United Kingdom.
Registering a UK company banking account for immigrants can be tedious but necessary.
There are no limitations on the banks that may stop foreigners from opening up banking accounts here, yet, there are policies against money laundering that lengthens the overall process.
After registering your business, you are all set.
Are there Agencies that can help me get Registered In the UK?
Yes, the answer to your question is yes. Many agencies can allow you to register as a foreign company in the UK. Let’s look at a few, so you can decide which one works for you.
1. Your Company Formation
Your Company Formation is the agency that can quickly help you register your business while guiding you to fulfill all legal requirements. They have no hidden charges, 100 years of experience, speedy and trusted service, simplicity, and privacy with different plans.
Phone: +44(0) 207 689 7888
Address: 128 City Road, London, EC1V 2NX
2. Seed Formation
Seed Formation specializes in registering foreign entities operating out of the United Kingdom. They handle all your address needs, including- company registration address, trading address, and director service address – plus, their helpful staff ensures that you get access to a great-looking website and professional emails! You are guaranteed personalized assistance and flawless execution at every turn – £89.99.
Address: 2 Frederick Street, London, WC1X 0ND
3. London Registrars
London Registrars can provide comprehensive compliance support for these firms, beginning with the need of Companies House for a certified copy of the company’s constitutional documents, accompanied by a certified translation into English. A recent set of accounts is also needed with a certified translation into English. The London Registrars’ office can assist you with this by obtaining a quote for the translations from within the UK. Other services include advice and assistance with filling out and submitting an application form (19 pages) and supporting documents needed for registration. London Registrars also make the cost payable upfront before they ensure the business has a registered office address for one year after opening the shop.
Phone:020 7608 0011
Address: Suite A, 6 Honduras Street, London EC1Y 0TH.
Many people find it difficult to open a business in the UK. With some careful planning and research ahead of time, it might not be long before your aspirations for running a successful company are realized!
However, while starting up a company there may seem intimidating at first glance, it is worth remembering that there are many upsides – namely, being able to take advantage of an international market without having all the hassles you would experience at home.