In 2024, the UK remains a top destination for global entrepreneurs, business people, and consultants who want to open a new company in a new and thriving marketplace. Not only does the UK offer a vibrant business environment, access to international markets, and robust legal protections, but doing business here could not be easier. Whether you want to start a new company in the UK or expand your existing overseas business into the UK market, this guide is for you. Here, we will explain the essential elements of opening a company in the UK as a foreigner, the visa requirements, including the self-sponsorship route, company formation process, company types, and other considerations such as tax and banking.

Why open a company in the UK as a foreigner?

The UK offers a strategically advantageous location for those looking to open a business in a new country. As the world’s 6th largest economy, business people can be extremely successful here. Not only is the economy large, but it is extremely stable. Add to this the transparent legal system and the simple and favourable tax environment, and it is easy to see why the UK is such a popular business destination.

Other reasons to consider the UK if you are considering setting up a business in a new jurisdiction include our well-established physical and digital infrastructures, strong stock market, skilled workforce, excellent education, robust intellectual property protection laws, and fair competition rules. All of these make the UK an extremely attractive base for international business operations, especially for businesses looking to penetrate the European and global markets post-Brexit. The UK’s access to a wide network of trade agreements and financial hubs, including London, one of the world’s leading financial centres, provides overseas business people with unparalleled opportunities for growth and expansion.

The new Labour government, which came into power earlier in 2024, is adding to the stability of the UK from an economic, political and social standpoint, making the UK an increasingly popular destination for direct overseas investment. To get a true understanding of the attractiveness of the UK to overseas investors and business people, it is useful to look at the levels of foreign direct investment (FDI). According to top four accounting firm EY,

“Europe as a whole recorded a 4% year-on-year decline with a total of 5,694 [foreign direct investment] projects recorded in 2023”. At the same time, “The UK’s share of all European FDI projects grew to 17.3% in 2023, an increase on the 15.6% seen in 2022”. EY also report that “The UK has secured the largest number of new projects for the last five years, and in 2023, it secured 173 more projects than Germany”.

Can I Open a Company in the UK as an Overseas Business Person?

As an overseas business person, it is extremely easy to open a company in the UK, whether as a standalone venture or as an expansion of your existing operations. The UK government allows non-residents to own and manage companies, making it an attractive option for foreign entrepreneurs. You do not need to be a UK citizen or resident to set up a company here. However, you must ensure that your business complies with UK regulations, including tax laws and company registration requirements.

What Are the Visa Requirements if I Want to Open a Company in the UK?

If you plan to move to the UK to run your business, you will first need to obtain a visa. The two most relevant visa options for entrepreneurs are:

A) Innovator Founder Visa

The Innovator Founder visa is ideal for experienced entrepreneurs who want to establish an innovative business in the UK. To qualify, you must have a business idea that is endorsed by an approved UK endorsing body. Your business must be viable, scalable, and innovative. Additionally, you need to demonstrate that you have sufficient funds to support yourself and your business in the UK.

One of the benefits of this visa is that you can gain permanent settlement in the UK after just 3 years. It normally takes 5 years to apply for Indefinite Leave to Remain.

B) Global Business Mobility Route

The Global Business Mobility Route is for overseas businesses looking to expand into the UK. It allows foreign companies to send senior managers, specialists, or entrepreneurs to the UK to set up a branch or subsidiary. This visa is part of the UK’s broader strategy to attract international businesses and facilitate cross-border trade.

To understand your visa options based on your unique circumstances, we recommend speaking to one of our immigration Solicitors, who can advise you. Not only will we explain the options and help you choose the most suitable route for you and your family, but we will also handle the application process on your behalf.

C) Self-Sponsored route

Another option to consider is the self-sponsorship route. The self-sponsorship route allows overseas business people to relocate to the UK without the need for a UK employer to sponsor them. Instead, applicants establish their own business in the UK, apply for a sponsor licence under that business, and then sponsor themselves for a visa. This pathway enables foreigners to live and work in the UK, with the opportunity to settle permanently after a certain period of continuous residence (5 years on the Skilled Worker route). Following this, they can apply for British citizenship after an additional 12 months.

At A Y & J Solicitors, we specialise in UK immigration self-sponsorship. We can assess whether this route is suitable for you and your family, assist in preparing your application, collect the necessary evidence, submit your case, and address any inquiries from the Home Office.

Can I bring my family members to the UK?

Yes, most UK business visas, including the Innovator Founder Visa and Global Business Mobility Visa, allow holders to bring family members to the UK. Eligible family members include your spouse or partner and any children under 18. You can also bring your children if they are over 18 as long as they are financially dependent on you and not living an independent life. Your spouse and/or children will need to apply for a dependent visa, and you must demonstrate that you have sufficient funds to support them without accessing public funds.

What Are the Types of Companies in the UK?

The UK offers several business structures, each with its own advantages and disadvantages:

Sole Trader

As a sole trader, you run your business as an individual. This does not need to be registered with Companies House, and the administrative requirements are minimal. This is the simplest form of business structure, but you will be personally responsible for any business debts.

Partnership

A partnership involves two or more individuals sharing ownership of a business. While it is simpler to set up and manage than a limited company, partners are also personally liable for the business’s debts.

Private Limited Company (Ltd)

This is the most common type of business structure in the UK. It offers limited liability protection, meaning your personal assets are protected if the company faces financial difficulties. However, there are strict compliance requirements, including annual filings and corporate taxes.

Public Limited Company (PLC)

A PLC can offer shares to the public and is often used by larger businesses seeking to raise capital. While it provides access to a broader pool of investors, it comes with strict regulatory requirements.

How can I register my company in the UK?

Registering a UK Company

To register a company in the UK, you need to go through Companies House, the official registrar of companies. The key steps are as follows:

Registering an existing overseas business

If you wish to expand your existing overseas company into the UK and have a base here, it must be registered with Companies House. This involves providing details about your company, such as its legal form, governing law, and country of incorporation. You must also submit certified copies of constitutional documents and, if necessary, a translation into English.

You will need to complete and submit form OS IN01 and send it to Companies House within one month of opening for business in the UK.

Other Key Considerations

When setting up a company in the UK as a foreigner, you should also consider the following:

Final Words

Opening a company in the UK offers boundless opportunities for commercial success, but it requires careful planning and compliance with the UK’s legal requirements. Engaging an experienced UK-based immigration Solicitor will ensure that your immigration and visa needs can be met while you focus on setting up your business here.