What do you need to start a business in Great Britain?

What do you need to start a business in Great Britain? - Legal help

One ​​of the key tasks that an entrepreneur must solve is choosing the appropriate type of company to register in Great Britain. This will minimize costs, accelerate revenue generation, and integrate more easily into the new business environment. It is often difficult to do this on your own without the help of qualified legal experts who understand all the nuances of the country's legislation. That is why it is advisable to seek advice from competent lawyers if you plan to register a company in England.

Types of business structures in the United Kingdom

The type of commercial organization in England determines how it will interact with the tax authorities and other government authorities, what reports will be submitted at the end of the accounting period, how labor relations with employees will be organized and other issues. The intended scope of the company's activity and your personal preferences are also important.

A commercial entity in the UK can be corporate, such as a limited company, or unincorporated, such as a sole proprietorship or partnership. Let's consider each of these options separately.

Individual entrepreneur (Sole Trader)

In the status of an individual entrepreneur, you can work for yourself and be an employee at the same time. Doing business in this status is quite simple, as individual entrepreneurs do not have complex document flow and reporting.

Self-employed (ie not employed) citizens and permanent residents of the United Kingdom can register as an individual entrepreneur. Official registration should be considered for those Englishmen whose commercial activities bring in more than £1,000 per year.

Unfortunately, the responsibility of individual entrepreneurs in England is not separated from their business. If the commercial activity of such an entrepreneur is not successful, the resulting debts will have to be repaid from their own funds.

Particulars of the company registration process in Great Britain

In recent years, it has become much easier for foreign citizens to open their own company in England. Thanks to experienced registration agents, you will be able to do this remotely, without leaving your own office. Conventionally, the process of business registration in Great Britain can be divided into 5 short stages:

• Search, check and approve the original name for the future company The key word here is "original". Your company name should not repeat or be similar to business structures already registered in the country. You may also not use words similar to copyrighted trademarks, as well as obscene, offensive or unreasonable words and phrases.
• Determining the business structure At this stage, the following parameters are determined: Size of the company's authorized capital; Number of shares and their nominal value; Founders and shareholders, their shares in the authorized capital and role in business management; Decision-making procedure in the company; Distribution of dividends.
• Office rent, appointment of directors and corporate secretary According to the new rules, it is no longer possible to use a subscriber's box as the registration address of an English company. The British authorities want even international companies that do not have an economic presence in the country to indicate a physical office as their legal address. Ideally, there should be a representative of the company in the office at the address of registration, who will promptly respond to all official correspondence. In most cases, interaction with authorities and administration is handled by a corporate secretary located in England.
• Preparation of constituent documents For the most common forms of doing business in England - limited liability companies - the founding documents are the charter and memorandum (constitutional agreement).
• Official registration After our specialists have checked and approved the company name, discussed with the client and recorded the structure and management of the company in the founding documents, an application for registration is submitted.

After registering an English company

If you did not open a "dormant company", your obligations do not end after receiving the certificate of registration. For settlements with partners and clients of the British company, it is necessary to open a bank account. If your business has a significant turnover, you should register for VAT. Those foreign entrepreneurs who plan to hire British workers are registered separately with the tax service.

The format of the short publication does not allow for a detailed consideration of the issue of tax optimization. After all, the corporate and tax legislation of Great Britain has many hidden opportunities to reduce the tax burden on business.

These tasks and many others are successfully solved by our company's specialists both as part of our standard complex business solutions and individually.

Current questions answered

Legal analysis of the situation

In order to successfully open a business in Great Britain, it is necessary to carry out a comprehensive legal analysis of the situation, which includes a legal analysis of available forms of business structures, preparation of constituent documents, a legal audit of registration requirements and tax obligations, as well as legal analysis of labor relations, if hiring employees is planned. A regular legal audit of the corporate structure will ensure compliance with the law and business efficiency, allowing to avoid legal problems and ensure the proper functioning of the company.