Your Handy Guide to Starting a Business in the U.K.

Know how to start your business in U.K. The United Kingdom’s position to attract investors across the globe remains undiminished. The country enjoys a solid reputation both regarding business culture and geographical competitiveness. Moreover, its open markets and diversified economy make it one of the best places in the world to do business.

However, there are certain things that global investors must keep in mind before heading to establish their business in the U.K.

There are specific visas available for foreign investors and entrepreneurs wishing to set up their own business in the U.K. Earlier, E.U. members were not required to apply for the visa. With Brexit in place, they too are subject to visa regulations, just like non-EU members.

Establishing your business in the U.K. is possible through the below-mentioned visa options. But, before, that let’s discuss the benefits of doing business in the U.K.

Advantages of doing business in the U.K.:

U.K.’s large and dynamic marketplace opens gateways to other parts of the world. Foreign investors arriving here have experienced  plethora of advantages, including:

• A deep pool of workforce expertise;
• Outstanding transport links with different parts of the world;
• A central time zone ideally placed between Eastern and Western markets;
• A flexible and competitive location for business-minded people;
• One of the world’s global financial centers;
• No language barriers;
• Top-notch environment for research and development work;
• A vast network of Tax Treaties

How to start your business in the U.K.?

Know whether you need a visa- E.U. nationals living in the U.K. before January 1, 2021, can apply for the E.U. settlement scheme. But most foreign nationals must apply for a work visa before establishing their business.

Choose the right visa pathway- Picking up the right visa pathway is extremely important to get things right. The most popular visa options for entrepreneurs include Innovator Visa and Start-up Visa.

Assess the legal structure of your business- Once you start a business in the U.K. as a foreign investor, you must decide on the legal system of your company. There are four different business structures in the U.K.: sole trader, partnership, limited liability partnership (LLP for short), and limited company. Evaluate the pros and cons of each business structure and decide which best suits you.

Incorporate your business- You must incorporate your company if you plan to establish a limited liability company. It involves registering with the Companies House.

Register for Corporate Tax- Register for Corporate Tax once your company is incorporated, regardless of your business structure, self-employed people need to register as a Self-Assessment Tax Payer with HMRC.

 Visa Pathways available for Foreign Investors

 Eligible foreign investors have two visa options, which include:

• Innovator visa
• (Start-up visa)

Candidates applying for the visa outside the U.K. may decide on their application within three weeks of lodging the application.

Innovator Visa

The Innovator visa is an ideal option for investors looking to establish and run their own business in the U.K. The business idea should be unique and competitive and endorsed by a designated body in the U.K. Prospective investors will need to have access to at least £50,000 to invest in their business. You must also prove the source of available funds. You will also need to have an innovative, viable, and scalable business idea approved and supported by an endorsing body.

Eligibility Requirements

• be at least 18 years old
• meet the English language requirements
• Be able to prove that you have enough personal savings to support yourself while you’re in the U.K. You must have had at least £1,270 in your bank account for 28 consecutive days before you apply for, extend, or switch to this visa.
• You must have at least £50,000 in investment funds to apply for the visa

Start-up visa

The Start-up visa requires a unique business idea that’s not trending in the U.K. market.

There is no investment funding requirement. However, investors must prove at least £1,270 in their bank account for 28 consecutive days. You must also be endorsed by a designated body that’s either:

• A UK higher education institution
• a business organization with a history of supporting U.K. entrepreneurs

Investors must also prove that their business idea is:

• a new idea – you cannot join a business that is already trading
• innovative – you must have an original business idea that is different from anything else on the market
• viable – it has potential for growth

Eligibility Requirements:

• be at least 18 years old
• meet the English language requirements
• have your business idea endorsed by a designated body in the U.K.
• be able to prove that you have enough personal savings to support yourself while you’re in the UK

With the start-up visa, you can live in the U.K. for two years. After that, you can also switch to the Innovator visa.

UK Sole Representative Visa

Also known as the Representative of an Overseas Visa, the Sole Representative visa is created for non-UK nationals who want to expand their employer’s business in the United Kingdom. The visa allows representatives and employees to settle in the UK with their families. The Sole Representative visa is an ideal option for high net worth individuals, entrepreneurs, and business executives looking to permanently settle and carry out business activities in the UK.

Eligibility Requirements:

To be eligible for this visa you must:

• have enough money to support yourself in the UK without depending on public funds
• meet the English language requirements
• be recruited and employed outside the UK by an active and trading business (whose headquarters and principal place of business are, and will remain, outside the UK)
• have the skills, experience and knowledge to do the role
• have no more than 50% ownership of parent company
• hold a senior position within the business and have full authority to make key decisions
• Intend to establish the overseas business’s first commercial presence in the UK, either as a registered branch or a wholly owned subsidiary.

How Abhinav can help?

Abhinav enjoys more than two decades of experience in global immigration solutions. Our team of experts helps entrepreneurs and HNIs make the right decisions regarding their business expansion while ensuring a hassle-free immigration process. We assist you with:

• Documents checklist
• Complete application processing
• Forms, documentation & application filing
• Regular updates & follow up
• Relocation and post-landing services in UK

For More information you can contact with our immigration experts at 8595338595 or [email protected].