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Setting up a company in the UK

Posted on July 12, 2022
  • VISA :

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.

  • CREATE AN LLC (LIMITED LIABILITY COMPANY) :

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.

  • Register as a future Corporate Tax payer on the HMRC (Her Majesty’s Revenue and Customs) website.
  • 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

nicolas.brahin@brahin-avocats.com

1, Rue Louis Gassin 06300 NICE (FRANCE)

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

www.brahin-avocats.com

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