A guide for foreign citizens starting a business in the UK
There is a real buzz about the UK when it comes to start-up companies and the promotion of entrepreneurship. The UK is widely regarded as one of the best places in the world to open up a business, or to relocate and establish a business presence from another country. Getting this process right is important, and this is where expert immigration lawyers with the knowledge of business immigration law can help a foreign citizen and business owner to have a smooth process when starting a business in the UK.
When looking to start a business in the UK you’ll find a range of business types. Before committing to anything, you should consider the pros and cons of each structure and what applies to your situation and the business you are opening. From sole traders through partnerships, limited companies, and limited liability partnerships, it is vital that you make the correct choice when opening a business.
What are the steps to starting a business in the UK?
There are a few steps you need to take as a foreigner before starting a business in the UK.
- Check your legal status – to work in the UK as a foreign national you will need to apply for a work visa. This is a vital step before establishing a business in the country. Any EU citizens who were living in the UK prior to January 1st, 2021, may be eligible for the EU Settlement Scheme.
- Apply for a visa – make sure to leave plenty of time when applying for a work visa. There are different types of work visa, which we will go into later on, including the innovator visa and the start-up visa.
- Have a solid business plan – any entrepreneur looking to start a new business in the UK must have a solid business plan with a clear plan of action. This helps to showcase that your idea is viable for the long-term success of a company.
- Choose the correct structure – as previously mentioned, there are a few different types of business structures to choose from, each with its own pros and cons.
- Company name and location – Sole traders can use their personal name, but larger companies should have a name and an idea of branding before opening. Your choice of location is important too, even if only to have a physical address to register as a UK business for tax purposes to begin with.
- Register with HMRC – register with HM Revenue and Customs, and with Companies House if you are setting up a limited company.
- Check out licenses and permits – some businesses will require extra licenses or permits in order to function. Double check with your business immigration lawyers about what you need to get started.
Different business visas in the UK
In order to work and live in the UK as a foreign national you’ll need a working visa. Below are the different types of visas.
- An Innovator Visa
This is a visa for people looking to establish a business in the UK. You will need to demonstrate that your business idea is unique and that you have a minimum of £50,000 in funding. You will also be required to show that you’ve had at least £1,270 in your bank account for 28 days, and that you can communicate in English. The cost of the visa is £1,021 and last for three years before a renewal is required.
- Start-up Visa
You can apply for a start-up visa if you have an endorsement from an organisation that assists UK entrepreneurs or from a higher education institution in the UK. The application fees start at £363. This visa gives you two years in the UK, and it cannot be extended. Within that period though, you can switch to another working visa.
- Global Talent Visa
This is the visa for leaders in academia, research, digital technology, the arts, culture, and other areas. The cost of the application is £600, and the visa allows you to work in the UK for up to five years in total.
Starting a business in the UK as a foreign citizen takes patience. There are a few different steps that must be taken, as you can see above. At every single step along the journey, it is important to have the correct support alongside you. Understanding business immigration law might not be in your wheelhouse, so ensure that you have immigration solicitors to support you. This will help to minimise delays, to keep you informed of proceedings, and ensure that the process of setting up a business in the UK is as smooth and painless as possible. There are some great benefits to working in the UK, and you could soon experience them as a business owner.
