According to official government data, the United Kingdom has over six million private sector businesses. This shows that the UK is one of the most attractive destinations for those looking to start a business abroad. Of course, navigating the business landscape in an unfamiliar location can be challenging. In this article, we will briefly cover some of the details of starting your own business in the UK as an immigrant.
First, before you begin planning, here are some important things you should note about starting a business in the UK:
It Is not Compulsory to Have a Business Account
It is not a legal requirement for an immigrant to have a business account registered in the UK. But you should get one to save you from transfer fees and the stress of moving your money from a local account to an international account since banks often charge extra fees for international transfers. That is why it is advisable to get a business account although it is not a criterion to start a business.
You Will Pay Tax on Every Income
Unless you have a work visa as an immigrant, you are not entitled to a self-employed personal allowance grant. So, for every penny you earn on your business, you have to pay an income tax.
You Will Need an Insurance Set up after Starting the Business
Getting your business insured is essential to protect your business from the turbulent business landscape in the UK.
How then can you start a business in the UK as an immigrant?
Confirm that You Can Legally Start a Business
For an immigrant, you need to check if your immigration status allows you to start up a business. Most times, immigrants are advised to apply for a work visa or other forms of residence permits before they can start a business, so you will need to apply for an ITIN (Individual Taxpayer Identification Number).
You Need to Have Adequate Information
Before you can start a business, you must be well-informed about the legal requirements, documents, rules, and regulations guiding business establishment and operations in the UK. You may be able to navigate many of these things on your own, but it is best to speak to a legal practitioner like the great Croydon lawyer team to help you out. This will save you from all the stress and also help avoid costly errors.
Write a Business Plan
A business plan is what determines the success of your business ideas. It is important that before you start up a business, you need to construct a business plan, research the market, and get to know whether your idea will be a viable one. You may also need your business plan during the process of registering your business.
Check Your Business Structure
After preparing your business plan, the next thing is to determine the type of business structure you would like to run. There are three main categories of business structures in the UK; the sole trader (this involves only one person handling the business, there is no difference between the owner and the business), partnership (it involves more than one person managing the business), and the limited company.
Choose a Business Name and Address
If you are a sole trader, you can choose the business name on your own. You will also need an address to register your UK business for tax purposes. The partnership or limited companies with more than one party involved may need to register the board of directors and work out their share structures and other details for the shareholders involved.
Open a Business Account
As stated above, opening a business account is not mandatory, but it is strongly suggested, so you need to open a business account once you set up a business to make your business transactions more seamless. The United Kingdom does not have restrictions that will prevent immigrants from opening a business account, so you are free to get one.
The complexity of planning and starting your own business in the UK depends largely on the type of business you are starting and the type of structure you intend to run. Be sure to do your due diligence with research and ensure that you get all the needed licenses, permits, taxes, insurance, and other vital documentation to avoid problems in the future.