In today’s article, we are going to talk about how to start a business in UK as a foreigner and what to look out for. You may know that in many countries, you might have to take very different steps to start a business but in the UK is not as difficult as it seems. In our next topic, we will talk about the details of the procedures needed to start a business in UK.
Start A Business in UK
The United Kingdom has the sixth-largest economy in the world, so starting a new business in the UK can lead to many opportunities. Before Brexit, other countries affiliated with the European Union could start a business in UK without needing multiple visas. After Brexit, this privilege has been removed for EU countries. But for European Union countries who want to start a business in UK, there is no issue. You might only need couple of visas. In short, it is certainly not impossible for a foreigner to start a business in UK.
The first step should be to find out about the visa requirements.
If you are an entrepreneur, you will need to apply for a start-up visa and an innovator visa. UK visas usually result in a granted or rejected outcome within 3 weeks.
On January 1, 2021, the points-based immigration system put into effect. It has been announced that the country with the points-based immigration system will have priority in attracting highly skilled and talented people. Therefore entrepreneurial candidates can benefit from this system. To qualify for the Entrepreneurs Tier 1 visa, you must have an investment budget of €50,000 or have invested €50,000 in the past. If you didn’t make such an investment in the past,
- FCA registered a venture capital firm.
- The UK’s finance department for start-ups and business owners.
- The money should come from the UK funding competition that entrepreneurs can use.
After this step, you need to make sure that your business is compatible with the law.
Once you have established that you are eligible for a visa, you’ll need to ensure that you can put your plan into action in the UK. Each business structure has its own requirements. You should have information about your business’ legal status and tax payments after doing some research on the subject.
In the United Kingdom, there are four types of business structures:
- Sole Trader
- Limited Company
- Limited Liability Partnership (LP)
Open a Bank Account
The third step to start a business in UK as a foreigner is to open a bank account. This step is necessary step for non-residents in UK. There is no special policy for opening a business bank account for non-UK resident immigrants, but the British anti-money laundering policy can lengthen the process.
There are three ways to open a business bank account for foreigners:
- Residency: if you live in the UK, and you have demonstrated the following requirements, you may qualify for this option: You have been resident in the UK for at least six months, have residential property and your office address must be different from your residence.
In addition, the bank will ask you for an electricity bill to verify your property. If you cannot meet any of these conditions, you can look at other options.
- Multi-currency account: This is a method you can use for international banking transactions. For more: How to Start a Business in the UK for Foreigners?- Wise
- International Banking: This method allows you to open a bank account with a valid passport, residential address, or ID card. Many banks in the UK permit immigrants to open a business bank account.
The final step to start a business in UK is to register your business with the tax corporation. Her Majesty’s Revenue and Customs (HMRC) is the agency responsible for administering the National Business Register. Once you have completed your tax registration, HMRC will ask you for the company registration number of the Company, the start date of the business and the end date for which accounts should be prepared.
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