How to Open a Business in the UK as an Expat: Step-by-Step Guide
The UK is one of the world’s top destinations for entrepreneurs, offering a strong economy, global market access, and a straightforward company registration process. If you’re an expat looking to start a business in the UK, here’s a detailed guide to help you move from idea to launch.
Step 1: Check Your Visa and Immigration Status
Before anything else, ensure that you are legally allowed to start a business in the UK.
- UK citizens and settled residents: Free to open a business.
- Expats from outside the UK: You may need a visa that permits business activity. Common options include:
- Innovator Founder Visa (for innovative, viable, scalable business ideas).
- Skilled Worker Visa (if sponsored by a UK employer, though not for self-employment).
- Global Talent Visa (for leaders in fields such as tech, science, or arts).
- Start-up Visa (being phased out, replaced by Innovator Founder Visa).
✅ Tip: Always consult the UK government website or an immigration lawyer before applying.
Step 2: Choose a Business Structure
The UK has several options depending on how you want to operate:
- Sole Trader: Easiest option, ideal for freelancers and small businesses. You pay income tax and National Insurance on profits.
- Partnership: Shared ownership between two or more people.
- Limited Company (Ltd): More professional, separates your personal and business finances, and can provide tax advantages. Registered with Companies House.
- Overseas Company Branch: If you’re expanding an existing foreign company into the UK.
Step 3: Register Your Business
Once you’ve chosen a structure, you’ll need to register:
- Sole traders: Register with HMRC for self-assessment.
- Limited companies: Register with Companies House (online in 24 hours). You’ll need:
- A company name
- Registered office address (UK address required)
- At least one director
- Shareholder details
- Standard Industrial Classification (SIC) code (business activity)
Cost: Around £12–£40 online.
Step 4: Open a UK Business Bank Account
Most banks require:
- Proof of identity (passport, visa, BRP)
- Proof of UK address (utility bill, tenancy agreement)
- Company registration documents (if Ltd)
Some digital banks like Wise, Monzo, Revolut Business, Tide are easier for expats to set up compared to traditional banks like Barclays or HSBC.
Step 5: Understand UK Tax Obligations
- Sole traders: Pay Income Tax and Class 2 & 4 National Insurance Contributions (NICs).
- Limited companies: Pay Corporation Tax (currently 25%) and file annual accounts. Directors also pay personal tax on salaries/dividends.
- VAT: If turnover exceeds £90,000/year (2025 threshold), you must register for VAT.
✅ Tip: Hire an accountant early to avoid tax mistakes.
Step 6: Set Up Business Operations
- Accounting & Bookkeeping: Use tools like QuickBooks, Xero, or FreeAgent.
- Business Insurance: Consider public liability, professional indemnity, and employer’s liability insurance.
- Marketing: Build a website, set up social media, and consider local networking events.
- Hiring Staff: Register as an employer with HMRC and follow UK employment law.
Step 7: Comply With Legal and Regulatory Requirements
Depending on your industry, you may need specific licenses:
- Food & hospitality → Food business registration.
- Financial services → FCA regulation.
- Transport/logistics → Operator’s licence.
Check with your local council or GOV.UK for industry-specific requirements.
Step 8: Grow and Scale Your Business
- Look for funding options: UK government grants, startup loans, or venture capital.
- Join business networks like Chambers of Commerce or expat entrepreneur groups.
- Consider international trade opportunities—UK is a hub for global business.
Quick Checklist for Expats Starting a UK Business
✔ Confirm visa/work rights
✔ Choose a business structure
✔ Register with HMRC / Companies House
✔ Open a UK bank account
✔ Understand tax obligations
✔ Get insurance & licenses
✔ Launch operations & hire staff if needed
✔ Plan for growth and scaling
