Opening a company in the United Kingdom

VISA:

Any non-UK resident wishing to set up a company is mostly required to have an Innovator Visa or a Start Up Visa.

There are, in fact, several types of visa allowing to open a company in the United Kingdom.

A)Innovator Visa:

This is the appropriate visa for the creation of an innovative company.
To obtain this visa, the applicant must be endorsed by an Innovator Endorsement Body.
This visa can last for up to 3 years.
The applicant needs to justify a minimum investment of £50,000 (GBP).
The applicant must prove that they have a budget of £1270 Pound Sterling (GBP) per 28 days (to prove that they have the necessary funds to live in this country).
Lastly, the visa fee is £1,021 GBP.

Start Up Visa:

This is the appropriate visa for applicants who wish to bring a real added value to the British market by creating businesses which are different from anything else on the market.
The business must be endorsed by an endorsing body.
This visa can last for up to 2 years.
The visa fee is £308 (GBP).

Other types of visa:

Otherwise, it is possible to opt for another types of visa.

If the applicant is a leader or potential leader in their field:

The applicant must be eligible for the Global Talent visa if they are leaders or potential leaders in academia or research, arts or culture, or digital technology.
With this visa, it is possible to:
- Start a business;
- Be an employee, self-employed, or directed of a company; and
- Work in the United Kingdom without a job offer.

Eligibility criteria: prove the status of leader or potential leader by applying for an ‘endorsement’.
This visa can last for up to 5 years.

It can be extended as long as the applicant is still eligible.

The applicant may be able to settle permanently in the United Kingdom after 3 years if they are leaders or after 5 years if they are potential leaders.

If the applicant is setting up their company’s first UK branch or subsidiary:

The applicant must be eligible for a UK Expansion Worker visa (Global Business Mobility) if they work for an overseas company and are planning to set up their first UK branch or subsidiary.
Eligibility criteria:
- Working in an eligible job; and
- Being paid a minimum salary (how much depends on the type of work).

This visa can last for up to 1 year.

It can be extended as long as the applicant’s is still eligible.

If the applicant has a qualification from an eligible university:

The applicant may be eligible for a High Potential Individual (HPI) visa.
Eligibility criteria:
- Having been awarded a qualification by an eligible university in the last 5 years; and
- Proving that the applicant can read, write, speak, and understand English.

This visa can last for 2 years.

If the applicant has a PhD or another doctoral qualification, this visa will last for 3 years.

If the applicant wants to stay longer, they must switch to another type of visa.

STARTING A LLC (LIMITED LIABILITY COMPANY):

Several steps are necessary to start such a company:

Choose the company’s name and its management 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 (it is required to have an address and a SIC code that determines the scope of the company’s activity);

Registration costs £12 (GBP) and is usually done within 24 hours; and

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 Avocat

Master’s Degree in Banking and Financial Law

Email : nicolas.brahin@brahin-avocats.com

1, Rue Louis Gassin

06300 NICE (FRANCE)

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

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