Business in the UK forms a significant part of GDP and is considered a priority area of development. The financial and banking sectors are one of the best in the world, which certainly attracts investors from different countries and helps increase business immigration to the UK.
Entrepreneurship in the UK helps to accelerate the receipt of permanent residence and British citizenship. Immigrant family members have access to prestigious education and employment. If you are interested in starting a small business in the UK, you can use the limited company tax calculator to consider the pros and cons of this decision. In this article, we will tell how to open a business in the UK and consider the main features.
How to Start a Business in the UK
In the annual report of Doing Business, the UK ranks 7th among 190 countries and 3rd among European countries, after Denmark and Norway. Features of the UK business:
- Most British companies have a clear hierarchical structure. Despite the stimulation of individual initiatives, personal ambitions can in no way be an obstacle to achieving the overall goals of the company. Managers and executives enjoy authority and tend to be on good terms with the team.
- British entrepreneurs are quite pragmatic and rational people. Most decisions are made by the manager personally, although group discussions of the company’s goals and objectives are often practised. Corporate meetings are usually formal and rarely turn into informal conversations.
- In the UK, more often than in other European countries, partners are invited to have lunch or dinner at home. In England it is considered normal to be late by 10-20 minutes, in Wales and Scotland, it is better to arrive on time. Be sure to give the hostess a small gift, in the form of flowers or a bottle of wine.
Any foreigner can do business in the UK. Citizens of the European Union and Switzerland have equal opportunities with local businessmen. Entrepreneurs from other countries usually apply for one of the working visas that allow them to live and run a business in the UK.
Company Registration in Great Britain
You can register a company in the UK through a Companies House website online or by regular mail by submitting an IN01 application to the registration office. In the first case, the registration fee is 15 pounds, and the procedure takes 24 hours. In the second case, it will take a minimum of 8-10 days and 40 pounds. The procedure will require taking the following steps:
- Choose a unique name and British address for the company.
- Indicate at least one director and shareholder of the firm.
- Register the association memorandum and charter.
- Provide information about shareholders and shares of the new company.
- Registration with the HMRC. The company must be registered as a corporate taxpayer, and if it has a turnover of more than 82 thousand pounds – it should be registered as a VAT payer. In addition, it is necessary to make payments in the national insurance system and deduct income tax.
- Make the insurance policies for each employee in a British insurance company.
Finally, a foreigner must prove their knowledge of English and meet the qualification requirements. You can check your education diploma on the website of the British Information Center NARIC.