If you are a non-resident looking to start a business or possibly even expand your current business in the uk. In this video, I will be talking about the key things to think about when looking to start a business in the UK from an overseas country.
As an Accountant, I provide guidance to many overseas business owners looking to grow and expand their businesses in the UK and there are typically some key questions to ask if you are in the position where you have an existing business outside the uk but would like to expand here in the UK.
It’s important to bear in mind that this is not applicable to every single situation and you should always seek professional guidance depending on your current circumstances.
Broadly speaking, I would start by considering the first question which is;
- What business structure should be considered if you are looking to expand your business in the UK?
There are two main options available when doing business in the UK either to form a limited company (subsidiary) or a branch.
There is no right or wrong answer to this question and the structure chosen will depend on practical factors such as whether you wish to have a separate legal entity, visas, bank accounts etc) and the ease of interaction with other UK limited companies, as well as the scale of planned operations for the business.
- What are the compliance requirements?
The UK is a heavily regulated country and starting a business in the UK particularly as an overseas business owner definitely brings about the need to comply with certain rules and regulations.
For instance, if you have a branch of your overseas company set up in the UK, you will be required to notify companies house of any changes made within the company and you will also be required to file financial statements with companies house.
Whereas, if you have a subsidiary then the UK company must file financial statements and confirmation statements annually as well as corporation tax return.
- Do you need to have a UK bank account?
A UK bank account is not required but is usually necessary from a practical perspective although this really depends on the magnitude of business activities your company will carry out.
Although setting up a uk bank account is typically easier as a UK limited company, most overseas business owners will usually face difficulties opening a UK bank account due to the strict money laundering regulations and increased resistance from the main British banks.
These are just some questions to consider when thinking about starting a business in the UK from an overseas country. Of course, there are other considerations including what your VAT implications might be as well payroll factors to assess the best way to pay your staff whilst operating your business in the UK.
If you would like to find out more about setting up a UK operation, please do get in touch by booking a call or sending us an e-mail at hello@thestartupwallet.com
