Buying a business in the UK

It is a common belief that it is harder for foreigners to succeed in business in an alien environment because they need to learn local business customs, culture and speak the language. And it is always a matter of how much money one can earn abroad, whether it will be enough to live and not less than the current income. What can bring you more money, opening a new business or buying an existing one? There is no straight answer as there is more than one aspect to it.

Who shall buy a business and who should not?

Acquiring an existing business is an excellent springboard for the future. You are getting a working system that can generate profit right from the start. You are benefitting from somebody else’s experience and expertise; it helps save you from mistakes of developing a new niche. Those who have a business already can get extra income with minimum time and money investment. However, the owners can be losing money and decide to sell their business; therefore, you must be extra careful when choosing your next venture.

How to buy a business

Start by asking the owner why they are selling – they might be relocating, buying a property, etc. No matter what they say, double check. Do your homework, check the number of clients, business performance parameters and how long they have been trading. It would also be a good idea to seek profession advice and get experts do necessary checks as they would know better all risks and pitfalls.

Why United Kingdom

The UK is home to the biggest market players in various fields, especially in high-tech. Great Britain is great in innovations; there are over 100 accelerators, incubators, technological parks. Intellectual property is protected, and entrepreneurs receive government support. The UK is known for one of the fastest Internet in Europe, transparent tax and legal systems. Fantastic, to start with, isn’t it? Domestic market is 65 million people. The UK is rated 7th by the World Bank for the ease of running a business.

Which business to buy

The UK has a strong small and medium-size business sector. If an owner wants to sell, they would do normally a marketing analysis and a business plan for the upcoming period. You can always buy an unkempt business, but be prepared to invest in its growth and development. Besides, apart from the business itself, you can buy shares and securities.

Legal support

Our experts at Imperial & Legal will prepare and conduct such deals for you; they will draft sale agreements, prepare and check title transfer documents, paperwork for the transfer of lease and freehold agreements. Our specialists will also help you choose a business, retail or financial firm. Bear in mind that not every business will work if your ultimate goal is to get permanent residence and British passport.

Taxes for business buyers

When buying a business, you can always select which assets and property to acquire. The final value will determine the amount of stamp duty you have to pay; the more expensive is the buy, the more you will be charged. If you choose a going concern, you can save on VAT. When buying shares, there will be a change of director, shareholder and beneficial owner – the business will still belong to the owners. If such buy exceeds £1,000, stamp duty will be 0.5% of the purchase amount.