Start a Hospitality Business in the UK as a Foreigner in 2025

Perhaps the most fantastic thing with the hospitality business is how relevant it can be anywhere in the world, making it a very attractive global opportunity. Generally speaking, establishing a hospitality business in the UK as a foreigner may be a venture that is often rewarding and challenging in its different ways.

The UK has one of the busiest hospitality sectors in the world, receiving many kinds of visitors from every part of the globe. Be it a hotel, a bed and breakfast, a restaurant, or a tour company-the UK has ample opportunities.

It is very important to seek proper advice for non-residents seeking to invest in an overseas business venture, as that can otherwise be pretty daunting.

We are here to guide you through every step of the way.

Before you plunge into starting a business in the UK hospitality industry, there is every reason to understand the market and the entry barriers to foreign nationals. The UK is among the most favoured destinations by both tourists and business travellers, thereby making the hospitality industry thrive.

The UK Hospitality sector was reported to have contributed 25 billion GBP to the economy alone in 2023. However, it is a highly competitive market, with so many established brands and already flourishing local businesses. The key here, therefore, is finding a demanding niche and pocket-effective immigration pathways with the right marketing strategy.

The first step is naturally to identify the market gaps your business can fill. For example, if you are opening up a restaurant, ask what your target area lacks in terms of cuisine. Similarly, in accommodation, you might want to consider what kind of unique experience you can offer that sets you apart from commercial hotels. The more you understand your target market and what they like, the better positioned your venture is.

A solid business plan is more than just numbers on a page, it is your roadmap to success. Your plan should outline your target market, operational strategy, and revenue streams. It should also detail your marketing approach in terms of not only attracting but retaining customers. Once you have chosen the right market to enter and the road map leading to it, move on to incorporating the company with Companies House and untangling the legal and immigration steps.

For instance, one of our beloved clients set up the restaurant- ‘Colonel Saab’ in Covent Garden to bring the essence of Indian cuisine to the heart of London. Today, the chain has expanded to another branch right in the middle of Trafalgar Square and continues to be a hit.

Setting up a business in the UK can be very cumbersome, especially within the hospitality industry due to the legal and regulatory requirements that one has to meet. To this end, you would have to register with Companies House and decide on an appropriate business structure as you begin working, which in most probability would pertain to a limited company.

If you are setting up a restaurant or hotel, for instance, you will have to apply for licences including food safety and alcohol licences. Compliance with health and safety is paramount in hospitality, so make sure you understand the rules you will have to comply with. That said, it is recommended you consult with a local advisor who can take you through the process and help you avoid any pitfalls.

As a foreign entrepreneur, securing the right visa is one of your first steps as it can prove detrimental to your business if you fail to get the permission to enter and remain in the UK. The UK offers several visa options for entrepreneurs, including the UK Innovator Founder Visa and the UK Self Sponsorship Visa route. The former requires an endorsement from a recognized body, and the latter provides entrepreneurs the opportunity to personally go to the UK and set up a new business without excessive restrictions. For hotels and restaurants already in business and wanting to expand globally, the UK Expansion Worker Visa is an excellent option.

The immigration system in the UK is extremely intricate, and it is of real help to work with an immigration advisor. They will take you through what is required, assist you in the collection of documents, and ensure your visa application is successfully done. More specifically, getting the right visa is essential at the start of the business but also at keeping one in business.

Marketing is essential for attracting guests and building your brand. In the digital age, online presence is critical. Ensure your website is user-friendly, mobile-responsive, and showcases what makes your business unique. High-quality photos, guest testimonials, and clear information about your offerings are must-haves.

Social media is a powerful tool for reaching potential customers. Share engaging content, such as behind-the-scenes looks at your business, guest stories, and local attractions. Collaborating with influencers or partnering with local businesses can also help you reach a wider audience.

As your business grows, the journey of compliance with UK regulations, along with adapting to the market changes, will be an inseparable part of it. Make sure to regularly review your business practices so that you meet all the legal requirements of the case. This is highly important in areas such as health and safety, employment law, and tax obligations.

The hospitality sector keeps changing, and new ways such as sustainable tourism, wellness travel, and tech-driven guest experiences are on the rise. Stay informed about such trends and get ready for changes in your offerings to match the new expectations of customers. Flexibility thus becomes paramount in keeping competitive and providing experiences being sought by guests.