How to open a UK company without mistakes and hassle-free

The United Kingdom has been one of the most economically and politically stable countries in Europe. Do you think stability can be boring? Not really. If you decide to start a business in Great Britain, you will become part of a rich social and cultural environment, benefit from developed transport infrastructure, high-quality healthcare and education. However, if apart from registering a company in the UK, you are planning to set up an office, you should be aware of certain pitfall that could make your life harder.

Types of business addresses in the UK

British government is very flexible and welcoming when it comes to foreign nationals that want to do business on their territory. Therefore, if you have an ambitious and promising business idea, and in some cases enough money, you can either buy an existing company or production facility or start your own business from scratch. It is also very common for top managers of overseas companies to get a representative visa and become director of a UK subsidiary.

Registered and trading address of a UK company

Any business in the United Kingdom must have a registered address. It does not have to be your own office if you don’t plan to employ people or invite clients there. This is possible – in this case no physical presence is required, and company’s registered address can be your registering agent’s address.

However, if you do need an office, talk to expert advisers that have been incorporating and managing companies in the UK to save yourself time and money.

How to avoid mistakes while opening a UK company

Starting your own business is an exciting venture and you should do your best to minimise errors and issue that could cost you money. We have compiled for you the most common mistakes that you shall be aware of.

Incorrect type of the company

This applies to representative visa purposes as well. There are several main types of companies in the UK, limited liability company, public liability company, limited liability partnership and Scottish limited liability partnership. Each of them determines the requirements for opening an office in the United Kingdom which are not so obvious to a foreign entrepreneur that have been doing business in other jurisdictions.

Account opened in a wrong bank

It is theoretically and legally possible to run a business in Great Britain without opening a bank account at all, but it is not practical. A bank account is necessary. You will find that there are retail and private banks in the UK and making the right choice is vital. Consult competent lawyers because they have been dealing with banks and will help you make that choice. After all, a European bank might be your only option.

Poor business plan

Before opening a UK office, you must have a valid business plan of where your company will be going, what it will be spending and profiting, how you are going to employ and train your staff and much more. If you fail to prepare a good business plan, you might incur unforeseen losses in the first months of trading.

No market research done

Check and analyse your competitors for their strengths and weaknesses, do necessary research in order to minimise risks and mistakes.

Bad tax planning

Do not even think of starting a business in the United Kingdom without understating its tax laws even if you have been a tax pro in another country.

Late tax payments

This is a serious offence that could lead to penalties or even imprisonment.

Bad choice of an office location

Don’t expect much from a beauty parlour in a tiny countryside village or a real estate agent in non-residential areas.

We don’t want to scare or put you off; it is absolutely normal to make mistakes if you are new to the country. But you should try and minimise them, including by contacting an expert that has been opening companies and offices for many years. A knowledgeable and experienced lawyer would know everything from company incorporation to setting up an office, employing people and paying taxes.