The United Kingdom (UK) is one of the best places to start a business, including for foreigners. It’s a very productive economy, with a gross domestic product (GDP) of over $3 trillion and a significant percentage of high-earning individuals. It has many vibrant economic cities, including London, Bristol, Edinburgh, Manchester, etc.
This article will explain how to register a business in the UK as a foreigner. The steps include:
- Confirm Your Legal Status
Most foreigners need to apply for a work visa before launching a business in Britain. However, European Union (EU) residents who lived in Britain before January 1, 2021, may be eligible for the EU Settlement Scheme that allows them to continue residing there and start businesses.
Confirm which legal status you fall under.
- Apply For A Visa
If you need a work visa, you should apply for one early. The UK offers two types of visas for foreign entrepreneurs:
- Innovator Founder visa: A designated visa for foreigners who want to launch a business in the UK. To be eligible, you must demonstrate having an “innovative” business idea, defined as one different from anything that already exists on the market. You must also provide evidence of your business idea being scalable and having growth potential.
- Global Talent Visa: You can apply for a Global Talent visa if you are endorsed as a leader or potential leader in digital technology, academia or research, or arts and culture. The endorsement usually comes from prominent organizations that recognize scholars and outstanding personnel in the aforementioned fields.
The Innovator Founder visa has a £1,036 application fee and lasts 3 years. The Global Talent Visa has a £623 application fee and is valid for 5 years.
- Choose A Business Structure
You must choose the legal structure for the business you want to incorporate in Britain. The options include:
- Sole Trader: A one-man show. You are self-employed and personally responsible for any corporate debts and losses.
- Partnership: When two or more people agree to form a corporation and share responsibilities for managing it. The partners are equally liable for corporate debts and losses.
- Limited liability partnership: The same thing as a partnership, but the partners are only liable to the extent of capital they invested in the business.
- Limited company: The corporation assumes a distinct legal identity. The owners enjoy limited liability, meaning they aren’t personally responsible for company debts.
- Choose A Company Name and Address
You must choose a unique name for your corporation. It must be a name not already taken by another company or similar to an established brand or trademark.
You also need a registered office address to receive correspondence about corporate and legal matters. The good news is that you can rent a virtual office address at a low cost from Osome; you don’t have to spend money renting a designated office.
- Register With Companies House
You can fill out the Form IN01 incorporation application and submit it to Companies House. You can complete this form and get it processed online; you don’t have to be present in the UK.
This form requires certain documents, including valid identification for all shareholders and directors, proof of a registered office address, articles of association, etc.
Companies House will review your application and decide whether to approve it. If approved, you’ll receive a Certificate of Incorporation confirming that the government now recognizes your company.
Conclusion
We have explained how to register a business in the UK as a foreigner. Follow these steps to incorporate your company easily and quickly.
