Opening your own company in the UK: from incorporation to running a business
Opening a UK company is no longer the prerogative of only a few foreign entrepreneurs. If you take the process of UK company registration seriously and find your niche in the highly competitive British market, you will get not only a stable source of income but also a chance to settle in the UK and get a British passport.
It is not a walk in the park and not cheap either to establish your own business in one of the world’s financial hubs – the United Kingdom, but the money and effort you invest will pay off in the long run. You want to know why?
UK company registration: why is it a good idea?
- Robust British economy is unfailingly resistant to global crises and downfalls. Therefore, any viable business idea is bound to be successful.
- A UK-registered company is an investment in a legal business that has nothing to do with offshore schemes. It will generate more trust and respect from partners, suppliers and clients across the globe.
- UK government is very keen on supporting small- and medium-size companies as they are a source of income (read taxes). It can be either a direct support such as tax incentives, or indirect such as minimum interference, maximum simplification of processes and much more.
- Tax laws in Great Britain are not the most flexible; however, they offer many tax optimisation opportunities.
- We should not forget the variety of business structures for incorporation of UK companies, flexibility in terms of foreign residents who can become company directors as well as nominee shareholders and directors.
The above benefits combined with centuries of entrepreneurial traditions, a unique geographical position at the crossroads of trade routes and colossal markets for the sale of goods and services, create a business environment that attracts entrepreneurs from all over the world.
- Our article would not be complete if we only focus on the company’s performance and profitability and forget about other benefits for an investor doing business in the UK:
- First, a chance to move to a safe European country with a family in the status of entrepreneur or investor.
- Second, after a few years of continuously living in Great Britain, a foreign businessman can apply for settled status for themselves and their family, and then obtain a British passport.
- Third, prestigious and high-quality education for children in the best European schools, colleges and universities.
- Fourth, there are ideal conditions to preserve and multiply your personal savings. The money that you have earned before moving to the United Kingdom will be considered tax-free clean capital.
- Fifth, it is up to you where you will live in the UK – in a quiet quintessential English or Scottish town or the dynamic hustle and bustle of London, one of the world’s financial hubs.
A variety of options for UK company registration
Here is a table where we included the four business structures on the left and their key benefits on the right.
| Business structure | Advantages |
| Limited liability company (LTD or Limited) | Great solution for small and medium businesses Shareholders’ liability for company’s debts is limited to their share in its share capital Share capital can be as little as £1 A shareholder can be also a director of that company No restrictions on nationality, residency and tax status of shareholders and directors |
| Public liability company (PLC) | A more prestigious legal entity Shares can be traded on stock markets Shareholders’ liability is limited to the amount they contributed to the company’s share capital A PLC must have at least 2 shareholders and 2 directors one of which must be a natural person |
| Limited liability partnership (LLP) | No corporation tax as profit belongs to partners who must pay income tax Partners’ liability is limited by the amount they paid on registration No stamp duty on properties sold or purchased by an LLP |
| Scottish limited partnership (SLP) | No corporation tax, like LLP Only general partners are responsible for management and liable for any debts and obligations of the partnership SLPs are not required to file annual accounts when there is no activity in the UK |
Your UK business stress-free
Irrespective of the company structure, you will need professional support to operate and run your business in a most efficient manner. You will need expert advice at every stage of setting up and running a business – from incorporation to first annual accounts and beyond.
We can offer you three package solutions for start-up businessmen coming to the UK to realise their entrepreneurial dream.
Standard Package
It includes a bare minimum to start a business.
Imperial & Legal team will help you prepare all paperwork to open a UK company. You will get a certificate of incorporation and articles of association once your company is set up.
We will also provide you a 1-year registered address where you will receive post from the Companies House and HMRC related to corporation tax.
If your company’s shareholding structure or any details change, a company secretary will be able to make all necessary changes in the company’s registers and duly notify the Companies House (additional fee may apply).
Standard Plus Package
Apart from the above services, Standard Plus package includes a correspondence address for general post and an English-speaking secretary who will generate daily reports and email them to you at the end of each day.
Add-on services include a landline and a meeting room (fees apply).
Imperial Package
This is a turnkey solution for a UK business including anything your company might need. Apart from what is covered by two other packages, Imperial includes:
- A business address for VAT registration and opening a bank account.
- Assistance with opening a bank account in a UK or European bank.
- Consultations with Imperial & Legal UK business experts.
- VAT registration.
- Visa support for 2 employees.
What are the best entrepreneur visas to the UK?
To run a business in a foreign country, you must be there at least; for that, you need a permit that would give you right to live in the UK for a few years – it is called a visa or a residence permit.
Foreign entrepreneurs can apply for three main business visas: Start-up, Innovator and Representative of an Overseas Business.
Each of the visas has its own limitations. Start-up and innovators must have a clear, future-proof business plan that will inspire one of the government-approved bodies to issue them an endorsement letter.
A sole representative visa is available to a top manager of a parent company outside the UK who is not a majority shareholder. Work experience, qualifications and relevant education are what the Home Office will be especially interested in. A good level ofEnglish is a must.
All three visa categories require from entrepreneurs to dedicate all their working time to the development of business at hand. More information about these visas can be found in this article about business visas for entrepreneurs.
If you have money and ambitions to invest millions of pounds in a UK business, it is only natural that you would ask for more freedom and flexibility in return. Fortunately, there is a visa that gives such freedom – a UK investor visa.
Benefits of Tier 1 Investor visa
UK Investor visa does not take a lot of time to get, there is no need to take a language test or have any work experience and business education.
Investors have almost no limitations as to what they can do in Great Britain – they and their family can leave the country for as long as they need and come back any time. You don’t have to work only on one project – you can work anywhere, study or enjoy your time in a developed country.
Minimum investment is £2 million and it goes up all the way to £10M and higher. You must invest in a UK-registered business or businesses, your own or otherwise. There are restrictions on activities of these businesses as the government wants foreigners to invest only in the real sector of the economy.
Depending on how much you have invested, after 2 to 5 years of living in the country, you can apply for an indefinite leave to remain, or settlement, and then obtain British citizenship. If you are not keen on doing business after getting settled status, you can sell it and have your money back.
Start your business in the UK with Imperial & Legal
Want to know more about registering your company in the United Kingdom? Get in touch with business experts at Imperial & Legal. Immigration is only one aspect where we excel; we also offer a comprehensive range of services for any personal and business needs. Our specialists will not only help you set up a business in the UK and get a visa, but also ensure a smooth relocation to Great Britain (including search of accommodation and schools) and advise on tax optimisation and running a business.
