If you’re a non-resident with entrepreneurial aspirations, the United Kingdom offers a wealth of opportunities for you to establish and flourish in your own business. With a robust economy, diverse consumer base, and business-friendly environment, the UK is a prime destination for international entrepreneurs.
Entrepreneurs have a lot of opportunities to make their dream of owning their business in Britain a reality.
You do not need to worry about being the only one starting a business in the UK as a non-resident.
The UK has the biggest economy in the world, which is why many non-residents have started to take the opportunity to start a business in the UK.
Do not jump onto starting a business in the UK without considering a few things and taking a few steps.
This guide we have created for a non-resident of the UK looking to start a business there.
Look through and see what you have done and what you need to do to start a business in the UK as a non-resident.
Step 1: Naming and Planning the Business
Before thinking or doing anything, you will have to think about your business and what you will be naming it.
If you have already thought about what you will be the name of your business, then that is great.
However, if you have not thought or come up with a business name, then you should think about a few questions to start you off:
- What is your business about/what it does do?
- What will you be offering your customers?
- Can a single word describe your work?
Once you answer these three questions, you will have an idea and a few options for what you should name your business.
Write any and all names that come to your mind and show you, your team, family, and friends and ask for them to review it and you never know, one of them might come up with something better or perfect or might let you know which of your decided names are perfect.
If you still have not thought about a business name, you can then start working on your business plan and work backward from your business plan.
A business plan will have a summary of what your business will be about and how you will make it happen, and it will succeed.
You should have a detailed business plan and have the following details within it:
- Why your business is important or needed?
- What your business model is?
- Analysis of the market and competitors
- Financial predictions
The more comprehensive the business plan is, the easier it is to follow the path to a successful business.
Step 2: Business Address
You will need a UK address to register your business and start your business in the UK as a non-resident.
This might sound complex and annoying, especially if you do not have any plans to move to Britain after you start your business.
However, believe it or not, getting a UK address is not as hard as it sounds.
You do not necessarily need to be at the address; you only need it for correspondence and any letters.
There are two ways to get a business address.
You can use the address of your family or friends living in the UK (after their permission).
If you have no one you can trust or generally have no one you know in the UK, you can get a virtual office space.
What is a virtual office space?
It is a building that someone else owns, and companies offer it as a virtual office, where all your correspondence will get sent to you, guaranteeing you will get all your business-related posts.
Step 3: Business Legal Structure
What the legal structure of your business will be is the most crucial thing you have to consider before you start a business in the UK.
No matter if you want to start a business in the UK or in a different country, the legal structure of the company will determine how your business will operate.
Types of Business Legal Structures
- Partnership- When two or more people start a company and divide all the responsibilities and profit amongst each other.
- A Private Limited Company with a separate legal entity to the owners has to have a shareholder and a director.
- Public Limited Company (PLC)- The company’s shares are available to the public and should have two directors and a secretary.
- Unlimited Company- It is a unique business type, in which the shareholders all share the whole liability of its debts.
- Social Enterprise- The profits get given to charitable organizations or purposes.
- Unincorporated Associations- These are unincorporated organizations that are nonprofit-like community groups.
There are many types from which new businesses can choose.
However, most new businesses go for the private limited company structure.
Step 4: Registering with Companies House and HMRC
Registering a business, whether you are a resident of the UK or not, with the Companies House is the same for all.
You will not get charged for registering, and you will only have to provide some business information.
When you register with Companies House, you will have to give them the following information:
- Business Name
- Business Address
- Shareholder Information
- Documents of Formation
- Director Information
Once you register with Companies House, you will have to register with the HMRC, HM Revenue, and Customs for tax purposes; they will assign you a Unique Taxpayer Reference (UTR).
You will have to record every sale and expense your company goes through to pay the right tax amount.
If you have a yearly turnover of more than £85,000, you will have to also register for the Value Added Tax, VAT.
Other things to Think about Before Starting a Business in the UK
Once you have completed all the steps above, you can set up your business and start operating it.
However, there are a few other things you have to think about before you start like:
- Getting a business bank account or a virtual bank account in the UK.
- UK visa for traveling and working
- Data protection registrations
- Any licenses that your business might require.
The smart thing will be to take everything slow and do all the needed comprehensive research to not face failures or problems in the future.
Each business will have specific requirements. Therefore double-check everything before you start your business, ensuring you have all the right documents and legal requirements at hand.
Once all the mentioned steps are completed, you can set up and start running your business in the UK and make your entrepreneurial dreams come true.
Frequently Asked Questions
1: Can I operate my UK business remotely?
Yes, you can manage your business from abroad. However, having a reliable local contact or representative can facilitate communication and address on-ground matters.
2: How do I pay taxes as a non-resident business owner?
Non-resident business owners typically need to register for self-assessment with HMRC. You’ll need to report your business income and expenses and pay taxes accordingly.
3: Can I apply for funding or grants as a non-resident business owner?
Yes, non-residents can apply for certain funding and grants in the UK. Research available options and eligibility criteria to secure financial support for your business.
Conclusion
Starting a business in the UK as a non-resident requires thorough planning, compliance with regulations, and a strategic approach to taxation. Seek professional guidance, conduct comprehensive research, and connect with local resources to set the stage for your business’s success. With determination and a well-informed strategy, your venture can thrive in the dynamic UK business landscape.
