The United Kingdom is an industrialized region and is considered one of the world’s largest markets to open to immigrants. According to the World Bank, the country is placed as the seventh country with relaxed business laws and the first to give businesses credit in 2011. The country opened its border to immigrants, allowing people from different ethnicities to migrate to the UK. The multicultural feature can also be seen in businesses owned by expatriates and nationals.
The recent COVID-19 brought recession in most parts of the world, and the UK is trying to recover. This recession has created a gap in the economy that is left to be filled by immigrants. The country leaders are signing contracts to improve innovation and entrepreneurship. This opportunity is equally open to expatriates and citizens to start businesses. Once you have a registered company and a business plan, there are registered office services UK ready to give you a helping hand. Here are key things to know before registering your office in the UK.
Determine whether you need a UK visa
You can start working on your business plan if you’ve gotten your EU settlement permit, but if you’re a foreigner outside the EU, you’ll request a work visa from an Immigration law firm.
Get the appropriate visa
It is best to start preparing for a visa beforehand. Entrepreneur visa comes in two forms; innovator and start-up visa. The innovator visa is for those having the experience and intention to start a business in the UK. Applying for this visa means you’re innovating, scalable and viable. Get your business idea ready to present to the authority when applying for the visa.
Qualify for a visa
The Tier 1 Entrepreneur Visa is for businessmen with years of experience ready to invest money in an existing business or partner with a business owner in the UK. Applying for this visa means you have enough money to support the business for years.
Have a business plan
A business plan is a vital aspect of starting up a business in the UK. The authority will use the business plan to judge your ability to manage a business and succeed in the country. It’s best to do thorough research to develop a convincing budget projection. You can visit the UK government website to view existing samples or templates.
Choose a business structure
Your business structure is a graphical representation of your company. But before choosing a legal structure, you have to be approved by the authorized body to start a business in the country.
Pick a business name
Choose a unique name for your business. The selected name will be registered in the company name database with its address. Tax will be collected through the provided business
address.
Register your business
Some documents will be required of your office before proceeding with registration. All office registrations are done via the Companies House in the UK. If you’re considering establishing a limited company, you’ll need to possess certain documents such as:
FormIN01: this contains the office’s registration details, articles, address of the board members, report of capital and assets.
Memorandum of association: this contains names and approval of people who have agreed to join the company.
Articles of association: shows the business plan, shareholder’s privileges, and restriction of director powers.
- Cost of registration
The implemented fee is 20 GBP and 50 GBP for incorporation, while online charges 15 GBP and 30 GBP for the same day incorporation. You can only start running a business after receiving a certificate from the Registrar of Companies in the UK.
Your business tax is paid via the HMRC in the UK. After approval, you’ll have to register with the body to assist in processing your tax. The office will require some information such as business name, Address. Director information and Documents of establishment and shareholders.
Sole traders
The sole traders are in charge of their office and its debt. The sole trader is easy to start due to self-responsibilities. You can search the internet online to learn more about being a sole trader and registering. It’s easier to set up as a sole trader, but you’re personally responsible for your business’s debts. You also have some accounting responsibilities.
Limited companies
The limited company has management responsibility, but the finances are shared separately between involved parties.
Partnerships
A partnership is between two or more people ready to manage a business by sharing accounting responsibilities and business debts.
Rules for your type of business
To run an office in the UK, you’ll need to have licenses or permits, and Insurance
Where you work
Where your office is located also determine your responsibilities:
- Working remotely from home
- Renting office space for the business
There are business rates attached to renting or buying an office in the UK. However, discounts encourage small businesses, even as low as zero fees.
Conclusion
There is a couple of things to expect before applying for permission to start a business in the UK, especially as a foreigner. Remember to apply for insurance, permits, and licenses to abide by buying and selling standards. It would be best to track costs to manage the UK business better.
