Setting up a company in the UK

In the main, any non-UK resident wishing to set up a company is required to have an “Innovator Visa” or a Start Up Visa.

There are, in fact, several types of visas allowing you to open a company in the UK.

1. Innovator Visa :

This visa is used for the creation of an innovative company.
To obtain this visa, you must be supported by a specialized organization: an Innovator Endorsement Body.
This visa allows you to stay in the UK for a maximum of 3 years.
It is necessary to justify a minimum investment of £50,000 (GBP) to obtain it.
A budget of £1270 (GBP) per 28-day period is also required to prove that the person has the necessary resources to live in this country.
Finally, the visa fee is £1,021 GBP.

1. Start Up Visa :

This visa is intended for entrepreneurs who wish to bring real added value to the British market by creating a business.
The project must be supported by a specialized support organization.
This visa allows you to stay in the UK for a maximum of 2 years.
The visa fee is £308 (GBP).

1. Other visas :

Alternatively, it is possible to opt for another type of visa.

1. If the person is a leader or potential leader in their field:

The person is eligible for a Global Talent visa if he/she is a leader in research, art, culture, digital technologies…
With this visa, it is possible to:
- Create a business;
- Be an employee, self-employed or director of a company; and
- Work in the UK without a job offer.
Eligibility criteria: the person must prove that he/she is a leader or potential leader by applying for an endorsement.
This visa can last up to 5 years.

It is possible to extend this visa as long as the person is eligible.

The person may be eligible to apply to move to the UK after 3 years if they are a leader or 5 years if they are a potential leader.

2. If the person sets up the first UK branch or subsidiary of their business:

The person may be eligible for a UK Expansion Worker visa (Global Business Mobility) if he/she is working for a foreign company and is planning to set up his/her first branch or subsidiary in the UK
Eligibility criteria:
- Be employed in an eligible job; and
- Receive a minimum salary (defined according to the type of work).
This visa can last up to 1 year.

It can be renewed as long as the person is eligible.

3. If the person is a graduate of an eligible university:

It is possible to apply for a High Potential Individual (HPI) visa.
Eligibility Criteria :
- Have graduated within the last five years from an eligible university; and
- Prove that the individual can read, write, speak and understand English.
This visa allows the individual to stay for up to 2 years.

If the person has the equivalent of a PhD, this visa can last for 3 years.

If the person wishes to stay longer, they will have to change their visa type.

Several steps are necessary to create such a company:

Choose the name of the company and its executive staff (CEO and secretary).
Appoint the shareholders and the guarantor.
Choose the PSC (people with significant control) who will hold more than 25% of the shares.
Draft the articles and memorandums of association.
Register the company at Companies House (have an address and a SIC code that determines the scope of the company’s activity).

Registration costs £12 Sterling (GBP) and is usually completed within 24 hours.

TAXATION:
Business profits are taxed at 19%.
Self-employed persons are subject to income tax.
A business owner must pay social security contributions of 12% for employees paid less than £4,190 per month. Above that, the rate is 2%.

Lawfirm Cabinet BRAHIN

Nicolas BRAHINI Lawyer

Master’s Degree in Banking and Financial Law

1, Rue Louis Gassin 06300 NICE (FRANCE)

Tel : +33 493 830 876 / Fax : +33 493 181 437

Legal news