Set up a company in the UK
If you’re planning to set up a company in the UK, one of the first things you need to do is choose the right structure for your business. There are several options available, each with its own advantages and disadvantages. How to open a company in the UK? Here are some of the most common forms in which people choose to conduct their business in the UK.
Choose the right structure for creating a company in the UK
- Individual entrepreneur. If you’re planning to start a small business in the UK on your own, you might consider registering as an individual entrepreneur. This is the simplest and most straightforward option, as you’ll be the sole owner and have complete control over the business
- Cooperation. A cooperative is a type of business that’s owned and run by its members. Each member has an equal say in how the created business is run, and profits are shared among all members. This can be a good option if you’re starting a business with a group of like-minded individuals who want to work together towards a common goal.
- Private Limited Liability Company (Ltd). A private limited company is a separate legal entity from its owners, which means that the business can enter into contracts, own assets, and incur liabilities in its own name. This is a popular option for small and medium-sized businesses, as it provides a degree of protection for the owners’ personal assets.
- Company or Limited Liability Partnership (LLP). An LLP is similar to a private limited company, but with some key differences. One of the main advantages of an LLP is that it provides more flexibility in terms of how profits are distributed among the owners.
- Subsidiary in England and Wales. You might consider setting up a branch in England and Wales. This will allow you to take advantage of the UK market and infrastructure, without having to open a business in the UK.
Legal Requirements to start a company in UK
- Choose a name. You’ll need to choose a unique name for your company that’s not already taken, and also to create a legal entity
- Register with Companies House. You’ll need to register your company with Companies House, which is the UK government’s official register of companies.
- Obtain a registered office address. You’ll need to provide a registered office address for your company, which is the official address where all legal correspondence will be sent.
- Set up a bank account. You’ll need to set up business in a UK bank account for your company, which will allow you to manage your finances and receive payments from customers and clients.
- Register for taxes. You’ll need to register for various taxes, such as VAT and corporation tax, depending on the nature of your business.
- Obtain any necessary licenses and permits. Depending on the nature of your business, you may need to obtain certain licenses and permits, such as a business license or a food hygiene certificate.
- Comply with employment laws. If you’re planning to hire employees, you’ll need to comply with UK employment laws, such as providing a written employment contract and paying the national minimum wage. If you want to hire employees from outside the UK, you also need to obtain a Sponsorship Licence.
- Financing options. There are several financing options available for UK companies, including loans, grants, and investments. Banks and other financial institutions offer a range of loan products that can help you to finance your business, while grants may be available from the government or other organizations.
- Tax requirements. As a UK company, you’ll be subject to various tax requirements, including corporation tax, VAT, and PAYE. You’ll need to register for these taxes and ensure that you comply with all the relevant rules and regulations.
- Banking options. You’ll need to choose a bank that meets your business needs and offers the services and support that you require, such as business loans, overdraft facilities, and merchant services.
- Managing cash flow. You’ll need to create a budget, monitor your cash flow regularly, and take steps to improve your cash flow if necessary, such as by negotiating better payment terms with suppliers or reducing your overheads.
What other issues should be considered when creating a business?
- Business management. If you want to start a company in the UK, you’ll need to establish effective business management practices to ensure that your company operates efficiently and effectively.
- Working with employees. If you plan to hire employees from outside the UK, you’ll need to comply with immigration laws and obtain the necessary visas and work permits.
- Purchase or lease of business premises. It’s important to seek professional advice to ensure that you fully understand the legal and financial implications of any property transaction.
- Intellectual property. It’s important to work with a legal professional who specialises in intellectual property to ensure that you fully understand your rights and obligations.
How can we help?
If you’re looking to set up a business in the UK, Sterling Law can provide expert legal advice and support.
Sterling Law has extensive experience advising foreign clients on setting up and doing business in the UK across a wide range of sectors, including technology, manufacturing, and professional services. Our team of experienced lawyers can provide tailored advice and support to help you establish and grow your business in the UK.
Some of the advantages of working with Sterling Law include:
- Expertise. Our lawyers have extensive knowledge of UK business law and can provide expert advice on all aspects of setting up and running a business in the UK.
- Tailored advice. We provide tailored advice and support to help you achieve your goals.
- Cost-effective solutions. We offer cost-effective solutions to help you manage your legal costs.
- Multilingual support. We are fluent in a range of languages, including Russian, Ukrainian, Polish, and Lithuanian, which can be particularly helpful for foreign clients.
- Comprehensive service. We provide a range of legal services, including company formation, commercial contracts, employment law, and intellectual property.