The United Kingdom is undoubtedly one of the most lucrative places on Earth to reside with your family. It is also a wonderful place to start a new business and makes it big. But as a foreigner, starting a business Uk does require you to have a well-developed plan, strategy and knowledge. The government has introduced recently a points-based immigration system. This means foreign nationals will have a tough time meeting the visa criteria to establish a business here.
Related Post: How to register a startup/business in UK?
Tips for starting a business UK
Being a foreign national, you need to take into consideration the following aspects.
- Consider your visa position, which again depends on your nationality. Before starting a business here, you may need a valid work visa.
- If required, apply for a valid and correct visa. You can apply in advance if a visa is not required. Within three weeks, Entrepreneur (Tier 1) visas are accepted/declined. Application time validity is for three months.
- What legal structure is your business? As soon as the UK government allows you to set up your establishment, get down to the core details. If you are aware of what to start, then first determine your legal structure.
- If required apply for business incorporation. In case, you plan to start a limited company, then you will have to register your business with Companies House. You can also hire an intermediary to carry out this task.
- The next step will be to register for taxation purposes. If incorporated, then Corporation Tax registration is essential. Hiring highly qualified candidates for complex managerial and financial tasks may be out of the question due to a lack of budget and much work. In such a case, you can consider contracting or outsourcing local accountants in london for such tasks.
Also Read: The Benefits of Being an Intrapreneur
The immigration authorities show favorable treatments to prospective entrepreneurs. However, the points-based system has been divided into several ‘tiers’. Tier 1 represents ‘entrepreneurs, investors and highly skilled workers’. It involves applicants who are eager to establish or take over a business. They will also be involved actively to run one or more number of businesses in the country.
For Tier 1, the eligibility criteria are quite strict. You should have minimum investment capital of about £50,000. Otherwise, you should have the same amount of money invested in any UK business, within twelve months before applying. In case, you have not invested before, then money should flow from the following areas:
- UK government department making funds available to initiate/expand the UK business.
- FCA registered venture capital fund.
- UK entrepreneurial seed-funding competition that is DIT endorsed.
As an alternative, you can make an Entrepreneur (Tier 1) visa application if you can invest an amount of £200,000. The money should be:
- Your own.
- Joint account with a partner/spouse and they should not make the same visa application.
- Third-party offers like spouse or investor.
Besides this, it is essential to fulfilling the general Tier 1 criterion properly. It means that you have show proof of your being an English-speaking country or have undergone an accredited language course.
Also Read: How to Become a Digital Tycoon
Perhaps, you may want to extend your existing Entrepreneur (Tier 1) permit. For this, you need to prove your eligibility and fulfill certain criteria. Also, there will be a need to invest in any UK business amounting to a minimum of £200,000. This is exclusive of the director’s loan or commercial property. In case, your initial application is supported by any approved funding source, then the minimum amount required will be £50,000.
You may register as self-employed or a director after given residence permission under the original Visa within 6 months. But this should be not over 6 month period. Also, you will be required to prove your self-employed status, working director or as a partner for 3 months before making the application. Moreover, you need to have generated a minimum of 2 full-time jobs, existing over 12 months.
Getting to know the procedure will make starting a business Uk less complicated and quick.