Guide to Opening a Company in the UK


Guide to Opening a Company in the UK

Although opening a company in the UK is extremely easy for European Union citizens, it can be difficult for those from other countries. Therefore, it is necessary to carry out long and difficult procedures completely. You can learn what you need to do to open a company in the UK in this article.
What are the types of businesses that can be established in the UK?

England is one of the countries that offers attractive opportunities for entrepreneurs. Research shows that the country is the fourth most attractive address for commercial activities. Those who want to establish a company in the country can choose four different ways of establishing a business:

           Sole Proprietorship Companies: Sole proprietorships are taxed according to their annual income. VAT is payable if annual earnings exceed £85,000. Income tax is also paid. Those who establish this type of company submit an annual declaration.
           Partnerships: At least two entrepreneurs are needed to establish a partnership. When establishing a partnership, you can share the profits and losses by making an agreement between the parties.
           Limited Company: Those who want to open a company in England can choose the limited company type. Managers are appointed to such companies by the partners. Limited companies are obliged to pay corporate tax.
           Limited Liability Partnership: In the case of a limited liability partnership, each partner has tax liability for their share of the profits. However, in such partnerships, not all partners are responsible for the debts of the business.

Establishing a Company in the UK Step by Step

The steps to follow to open a company in the UK are as follows:

            Non-EU citizens must obtain a work visa. There are start-up and Innavator visa options for entrepreneurs.
            You should prepare your business plan for both short term and long term. This way, the authorities understand whether your business plan is feasible or not.
            You must determine the type of company that is most suitable for the job you will do. When doing this, you must take legal obligations into consideration.
            The name and address of the business are determined.
            Businesses other than sole proprietorships must be registered with Companies House.
            Those who establish a limited company must prepare a contract of organization. A bank account must also be opened.
            Limited companies must register with HMRC, the national tax authority.
            It should be checked whether there are extra permits and documents that need to be obtained depending on the work to be done.

Investment funding of £50,000 is required for the innovation visa. You must have a very new business idea for this visa. You are also asked to patent your idea. You must have £1,270 in your bank account for the 28 days before applying for the visa. Additionally, £1,021 is paid as visa fee.

English level must be B2. This visa is valid for three years. However, those who meet the necessary conditions can benefit from this visa and stay in the UK for another three years.

Approval from a higher education institution is required for a start-up visa. Instead, approval can be obtained from organizations that support entrepreneurship. It is also important that the business idea is unique. Payment of £363 is due at the time of application. With this visa, you can do business in the UK for 2 years.
What is the Social Insurance Process in England?

Those who want to start a business in the UK must have business insurance. Employers' liability insurance is mandatory to fulfill workers' compensation claims. There is also public liability and professional liability insurance.
Frequently asked Questions
How long does it take to open a company in the UK?
Company opening in the UK is usually completed within 48 hours.
How much does it cost to set up a company in the UK?
The cost of setting up a company in the UK varies depending on the type of company.
Is it possible to establish an online company in the UK?
Those who meet the necessary conditions can establish an online company in the UK.

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