How to start a business in the UK as an expat

If you want to become self-employed or start a business in the UK as a foreigner,

you’ll need to follow these steps:

1. Check that you can legally start a business

You’ll need to make sure that your immigration status allows you to set up a business.
For non-EU/EFTA nationals, this may mean ensuring that you have the necessary visa
and residence permit.

2. Write a business plan

UK entrepreneurs need a business plan. This will help you determine whether your
business ideas are likely to succeed and be sustainable.

You’ll need to research the market and prepare budget forecasts. You can download
the business plan and cash flow forecast templates from the UK government website.

3. Decide on your structure

As above, you’ll need to choose the business structure that best represents your
enterprise.

4. Choose a business name and address

If you’re a sole trader, you can just use your own name if you want. You’ll need an
address for registering your UK business for tax purposes and joining the company
register.

Only limited companies need to register their name, though others can register as a
trademark to stop anyone else from trading under the name.

If you’re setting up a limited company, you must appoint directors and a company
secretary, work out your shares and shareholders, write your memorandum and articles
of association, open a separate bank account, and register for corporation tax.

5. Register with HM Revenue and Customs

You will need to register your UK business with HMRC for tax purposes. Limited
Companies need to register with Companies House at the cost of £12 (online) or £40
(by mail).

6. Check any additional rules for your type of business

Depending on the nature of your UK business, there may be additional requirements,
such as:

 Licenses or permits (e.g., for selling food, playing music, or trading in the street)
 Insurance
 Rules to follow if you buy or sell goods abroad or store personal information

Sole trader

If you want to work as a self-employed person in the UK or run a business on your own,
you can become a sole trader.

As a sole trader, you can keep all of your business profits. You must make your own
arrangements to pay income tax and National Insurance. You are personally liable for
all business debts.

Freelancers in the UK are also classed as sole traders. To work as a freelancer in the
UK, all you need to do is to register as self-employed and make sure that you pay the
right amounts of tax and National Insurance.

https://www.expatica.com/uk/working/self-employment/how-to-start-a-business-in-the-uk-
1105218/
 US
https://www.usa-corporate.com/start-us-company-non-resident/how-to-start-business/?cn-
reloaded=1 (consultation and registration)