The UK is a vibrant hub for entrepreneurs, consistently ranking among the top destinations for launching a business. In fact, the United Kingdom clinches the impressive fourth spot on the US News & World Report’s Best Countries for Entrepreneurs list! While starting a business in the UK can present its challenges—especially for non-resident—don’t worry! Here, we’ll explore everything you need to know about turning your business dreams into reality in the UK.
Procedure to start a company in the UK
In the UK, there are multiple processes involved in starting a business. To help you get started, here is a condensed guide:
1. Select the Business Structure
Select a legal framework for your business. The most popular choices are:
Sole Proprietorship: You are in charge of all debts and manage the company alone.
Limited Companies: A limited company is a distinct legal entity, so the funds of the business and your finances are kept apart.
Partnership: A partnership is when two or more persons share management of a business.
Because of its advantages in terms of liability protection and tax benefits, the majority of new firms choose to form a Limited Company.
2. Select a Name for Your Company
Your company name needs to be original and adhere to UK naming conventions. Search the Companies House registry to see if it’s available.
3. Register Your Business
You must register with Companies House, the UK’s official business registrar if you decide to form a limited company. For a cost, this can be completed online (typically £12). You will require:
The name of the business; the registered office address in the United Kingdom; and the information about the directors and shareholders.
A memorandum and articles of organization, which are common documents that describe the constitution of your company
4. Open a Business Bank Account
Create a business bank account in the name of your organization. Banks usually require documentation proving your company’s registration.
Read also: How to Open UK Business Bank Account as Non-Resident
5.Register for Taxes with HMRC
– All businesses must register for Corporation Tax within three months of opening for business.
– You have to register for VAT if your company’s annual revenue is above £85,000. If it helps you, you can also freely register.
– You must register for PAYE and set up a payroll if you have employees.
Read also: How to Register For VAT in UK & Stay Tax Compliant
6. Apply for Necessary Licenses and Permits
Depending on your industry, you may need additional business licenses or permits. For example:
- Food businesses require health and safety permits.
- Financial businesses may need FCA (Financial Conduct Authority) approval.
7. Consider a UK Business Visa (If Needed)
If you plan to relocate or work in the UK, you may need a visa. Common options include:
- Innovator Founder Visa (for entrepreneurs with an endorsed business idea)
- UK Expansion Worker Visa (for those expanding an existing business)
- Self-Sponsorship Route (set up your own UK business and sponsor yourself)
In conclusion, registering a company in the UK from India involves choosing the right business structure, appointing directors and shareholders, and submitting documentation to Companies House. Ensuring tax compliance, opening a business bank account, and seeking expert advice will boost your success and global opportunities.
Moreover, you require any kind of guidance related to company formation in UK, Please feel free to contact us at 8881-069-069.
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