Registering a UK Company as a foreigner

Thinking of expanding your business to the UK as a foreigner?

It’s easier than you might think, and you don’t even need to be a UK resident. You can register a UK company as a foreign resident with the Companies House.

Moreover, once you have started the business in UK and are employing staff in the UK then you can even enter the UK on as a Skilled worker in a business that you own 100% shares (some also refer to this as UK Self-Sponsorship Visa).

This visa allows you to live and work in the UK by setting up and managing your own business.

Here’s a detailed guide to help you understand how you can get started.

So, what’s the big deal about this UK Self-Sponsorship Visa?

Well, unlike the earlier sole representative visa which did not permit majority shareholders to enter the UK as representatives of the business, if you are a majority business owner or even a sole proprietor you can now enter the UK as Skilled worker and work on the business that you have set up.

Unlike the UK innovator founder visa, you do not need to rely on endorsement from endorsing body and no checkpoints to see how your business is doing either.

• Permanent Residency: After five years of successfully running your business, you could settle in the UK and be eligible for naturalization. Big bonus if you’re planning to stay long-term!
• Family’s Welcome: Got a spouse or kids? They can come with you and live in the UK too.
• Do What You Want: Not specific to a single sector for business, you can set up a business in any field – whether it’s a retail store, a tech startup, or a consultancy—whatever floats your boat!
• No Major Investment Requirement: Unlike other visas that ask for a huge financial commitment, this one doesn’t. Plus, there’s no mandatory job creation aspect for settlement.
• More Stability: With this route, you have less to worry about in terms of visa cancellations.

It’s not a free pass—you do need to meet a few criteria:

• Business Intent: You must have a solid plan to start or acquire a business in the UK.
• Genuine vacancy: There must be a genuine role for the applicant in the business
• Funds: The business must have adequate funds to pay salaries to the migrants.
• English Proficiency: You need to prove your English is up to the mark—CEFR B1 level, to be specific.
• Experience: You should be able to show that you have the relevant skills and experience to make your business work.

You can retain the services of professional firms like The SmartMove2UK to register a company in the UK or you can visit the Companies House website and start the process yourself.

If you’re not just expanding but setting up a whole new venture in the UK, here’s what you need to know:

• Pick a Business Structure:
  This is your first big decision. Limited Company is the best – it offers your personal financial protection, as your personal and business assets stay separate.
• Name Your Business:
  This might take a while if your dream name is already taken. Use the Company Name Availability Checker to make sure your chosen name is up for grabs.
• Register a UK Company:
  You can work with specialists like The SmartMove2UK or visit the Companies House website for the process.
• Get a Bank Account:
  Once your company is registered, you’ll need to open a business bank account in the UK.
• Licenses and Permits:
  Depending on what you’re doing, you might need to get some industry-specific licenses or permits.

Here’s a handy checklist for the documents you’ll need:

1. Constitutional Documents: These outlines how your company will run.
2. Memorandum of Association (MoA): This states that you’re officially forming a company.
3. Unique Company Name: Self-explanatory, but crucial.
4. UK Address: You can use a physical or virtual office address to register your business.
5. Capital Statement: This outlines the company’s financial setup.
6. Directors’ Details: You’ll need to provide the details of the directors and anyone with significant control over the company.

Once your documents are sorted, here’s a quick rundown of what comes next:

1. Lock in Your Company Name and Address: Get a unique name and secure a UK-based address for official communications.
2. Appoint Officers: You’ll need at least one director (who may or may not be a UK resident), and while a company secretary is optional, it’s often a smart move.
3. Prepare Your Capital Statement: Detail how your company’s shares are structured and distributed.
4. Declare Significant Control: Be transparent about who has significant control over the company—this keeps things above board.
5. Get a Bank Account: A business bank account is essential for smooth financial operations.

You’re probably wondering what kind of budget you’ll need to set aside. Here’s a breakdown of potential costs:

1. Registration Fee: The fee for setting up a limited company is only £12.
2. Ongoing Costs: These will vary based on factors like location and industry:

• • Salaries: If you’re hiring, wages will be one of your biggest expenses—expect higher salaries in London.
  • Rent and Utilities: Office space can be pricey, depending on your location.
  • Marketing: Set aside a chunk of your budget for advertising and promotions.
  • Taxes: Limited companies pay Corporation Tax, while sole traders handle income tax.

The UK is a great spot for foreign businesses, and here’s why:

• Business-Friendly Environment: The UK has policies that make it easy for foreign businesses to thrive.
• Quick Setup: Registering a company in the UK is a breeze—it takes just 13 days on average.
• Tax Incentives: The government offers various tax benefits, like Entrepreneur Relief.
• Fewer Restrictions: The UK is more relaxed about what you can do compared to other countries.
• World-Class ICT Infrastructure: The UK’s robust IT network supports businesses from day one.