Setting up a company in the UK takes a lot of work. Suppose you are an overseas businessman who intends to establish or expand a business presence in the country; then, you need to consider the intricacies of regulations. This article will help you understand how to set up your company without a hitch.

Step 1: Business Structure Selection

The most important thing you need to do before incorporating a company in the UK is to select a business structure. Some of the commonly followed structures are:

• Sole Trader: This is the basic structure to choose when you plan to run your business alone and personally assume all the responsibilities for incurred debts.
• Partnership: This company structure is similar to a sole trader but can be formed between two or more people sharing responsibility and profits.
• Limited Company: This will help an individual to create an incorporated legal entity separate from the business and its owners, with limited liability protection benefits. Forming a limited company is the most popular choice for many in the UK.

Most overseas entrepreneurs choose a private limited company structure because it offers limited liability, credibility, and probable tax advantages.

Step 2: Your Company Name

First, think about a unique company name. Ensure your desired name hasn't been taken or is too similar to another company's.

Step 3: Register Your Company

• Companies House registration: You can register your company directly from its website. You must fill in all the details, such as the company's name, the registered office's location, and all the details of directors and shareholders.
• Memorandum and Article of Association: These legal documents include the company's structure and rules. Templates are available on the Companies House website.
• Corporation Tax Registration: As soon as your company is registered, you must register for Corporation Tax within three months of the business commences.

Step 4: Open a Business Bank Account

It is critical for you to open a business bank account for your company's bookkeeping purposes. If you are opening a business bank account, ensure you have all your documents, such as your company registration number, proof of identity and address.

Step 5: Legal Compliance

If you hire employees, you will be required to comply with UK employment laws. These include:

Employer's Liability Insurance

This pays employees compensation for work-related injuries or illnesses. Where you, as an Employer, need to register: You must inform HMRC and establish PAYE or Pay As You Earn, the scheme that deals with the money deducted from employees' wages for tax and National Insurance.

Data Protection

If your business deals with personal data, then you will have to comply with UK GDPR. Your business has to implement steps to maintain the privacy of the data, and you must report any data breaches to the Information Commissioner's Office.

Step 6: Getting Permits And Licences

Certain licenses and permits are needed to execute specific business operations, such as registering as a food business in the case of restaurants and getting a license to sell alcohol. You need to consult the local authority about what you require.

Step 7: Plan and provide an accounting system

It is essential to your business to have proper financial management. You can use an accountancy tool to monitor your business's income, expenditure, and profit. You would employ an accountant on your payroll to oversee it. You must keep proper records of your transactions. You would need them while filing annual accounts and taxes.

Step 8: VAT Registration

If your annual business turnover exceeds £85,000, the VAT threshold, you should register for value-added tax without an option. You can also register if you consider this best for your business, even though the turnover is below that. You can claim this against your business expenditure when you make evaluated tax payments.

Self-Sponsorship Route

This route helps you expand or establish a company in the UK as an entrepreneur to pave the way for a UK Sponsorship Visa. You can sponsor yourself and spread your business footprint in the UK. That route would involve setting up a UK entity, obtaining a sponsor licence, and then, in turn, sponsoring its owner or key personnel to a work visa.

Apply for the UK Sponsorship Visa

To apply for the UK Sponsorship Visa under the self-sponsorship route, one must: 

• Secure a Sponsor Licence: This is the first step; one applies to the Home Office with the wish to obtain a sponsor licence. The one desiring this must meet some criteria: the business has to be genuine and have an appropriate HR system in place.
• Allocation of CoS: Apply first for the sponsor licence and then provide yourself or the person you are willing to sponsor with CoS.
• Work Visa Application: You can apply against this CoS for a work visa for yourself, such as a Skilled Worker visa.

Conclusion

Setting up a company in the UK involves selecting the right form of business structure, registration with the Companies House, and meeting all legal requirements. The UK Sponsorship Visa helps international entrepreneurs relocate to the UK with self-sponsorship options to either set up or develop a business.

While the process may seem simple, expert legal advice will help avoid much pain from falling foul of UK business and immigration laws. Experts at A Y J Solicitors will be able to guide you through the process to ensure your company is set up correctly and you meet all of the legal requirements. Self-sponsorship is not a visa category but a strategic route for your business to expand or establish in the UK. Therefore, you need knowledgeable professionals by your side.

If adequately prepared with professional advice, you can set up a company in the United Kingdom that offers unlimited growth and opportunities for success.