The United Kingdom is the home of global trade. Success here often leads to global success, and businesses from around the world have a footing here so they can take advantage of the bustling economy. Every entrepreneur needs to start off right if they are going to succeed in a competitive marketplace, and the UK marketplace is no different. Make your start easier and increase your chances of entrepreneurial success with the information below. It covers structuring your business, registering it, and making sure you are compliant with all UK laws.
Make Financial Arrangements First
Business is all about money. As a foreign national, you may be concerned about getting your startup finances into the right place at the right time to ensure you can begin trading. Moving money around can be complicated, especially if those funds need to cross financial borders. Opening a UK business bank account for a non resident can be easy with the right help, and Silverbird has the experience and facilities you need to keep cash flowing as you start to build your new business.
To get your company started you may need to transfer large amounts of money from your resident nation to the UK, and some financers can place limits or penalties on large-scale money transfers. With Silverbird, you do not have to worry about that as they have no limits on transfers so you can quickly and easily send funds to where they need to be. Their help and support will continue as your business grows as they have plenty of resources for fledgling businesses to use to help them be successful in their marketplace.
Start The Right Type Of Business For You
Forming a business in the United Kingdom requires you to make some important decisions that will affect how you progress and develop over your first few years of trading. Foreign nationals have fewer business structures to choose from if they do not intend on taking up residence in the United Kingdom. Operating as a Sole Trader suits most first time entrepreneurs, but this type of business formation is only suitable for UK residents. If you plan on running your business from your home nation, you should form a limited company.
There are a few different types of limited company structures for you to choose from. If you are a sole operator without any other investors or shareholders then a Private Limited Company (Ltd) will suit you best. This type of arrangement insulates your private finances from the business, so you are not personally liable for any debts the company incurs. Foreign nationals that are starting a business in the United Kingdom with the help of investors or shareholders should consider starting a Public Limited Company (PLC). This will allow you to trade shares in your business publicly and work with other investors.
Working Without A VISA
If you are a business owner who intends to reside in your home nation, then you do not need a work VISA to operate in the United Kingdom. You can manage your business from abroad and earn money through company dividends, though you and your business will still have to pay taxes. Even if you own a business in the UK, you cannot work there without a valid VISA. This applies even if you are only attending a short meeting. If you are doing work in the UK, you must have permission through a VISA and be prepared to contribute to income taxes and National Insurance schemes.
There are a few different types of UK VISAs available to foreign nationals. Each has its own requirements, such as the Innovator VISA (formerly the Entrepreneur VISA) which requires the applicant to have £50,000 of investment capital. This money can come from the applicant or from a government-endorsed funding source such as a venture capital fund that is registered with the Financial Conduct Authority (FCA).
Plan For Business
The UK economy is a great place to do business, but you need to form a proper plan to get yourself going. You can do this with help from a business partner, manager, or your bank or financier, or you can put one together yourself. Starting your business up should be the first step in your plan, getting you and your business registered with UK authorities. The first step will be establishing an address in the UK for correspondence and one will be required to register your new company with HM Revenue & Customs.
Depending on the business structure you use, you may need to register your new company with Companies House before you can begin trading or accessing UK based finance. There is a nominal registration fee of £12 if registered online or £40 if registered by post. This is for Limited Companies of any kind (Ltd, PLC, or LLP) and means that your business information can be accessed by other businesses and financial institutions who may wish to do business with you in the future.
Protect Your Business
When the worst happens, insurance is vital to operating your business, and depending on the type of business you operate it may be mandatory. Any business that operates a public space such as a shop or a restaurant must have Public Liability insurance. This is compulsory to protect the public in the event of injury, but it also protects the premises from the cost of damages caused by a third party.
If you hire employees then you will also need to have Employers’ Liability insurance. This is compulsory for all businesses in the UK that hire one or more employees and provides coverage for the claims of any employee that suffers sickness or injury due to their work. Buildings and contents insurance may also be required if you have any kind of premises in the United Kingdom. This will protect you from losses incurred by theft, fire, or natural disasters.
Seek Out Support
The United Kingdom is one of the best places in the world to do business and takes many steps to encourage foreign investment here, including supporting foreign nationals to create new businesses. There is plenty of professional and governmental support available to entrepreneurs who want to trade in the UK, including financial support for some types of businesses and business owners. These resources can be used for support both in the planning stages of your business and as you operate.
There are government backed startup loans available, UK business grants, and help when formulating both your business plan and your tax allowances and which tax codes your business will use. You should tap into these resources to give your business the best chance of success and work with both local and national authorities to ensure your company is operating legally and fulfilling all its requirements with His Majesty’s Revenue & Customs.
Starting a business in the United Kingdom is easier than in many other places in the world, letting you focus on building up your company and finding the premises and staff you will need to succeed. The sooner you get the ball rolling, the sooner you will be welcoming your first profits from your UK based business.
