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Doing Business in the UK


Despite economic and constitutional change, a diverse range of overseas companies and entrepreneurs continue to identify the United Kingdom as an attractive place to conduct their operations.

15+


Years in Business

200


Assisted Clients
every year

35+


Business Partners Worldwide
Which Legal and Corporate issues do I need to consider when operating in the UK?

Legal and commercial issues, which need to be considered, by companies or individuals when entering a specific market as the UK are the following:

  1. The Corporate Structure;
  2. Tax Regime and Tax Exemptions;
  3. Intellectual property rights and data protection;
  4. Immigration rules after Brexit;
  5. Employment PAYE regulations;
  6. Trading Law and regulation (Fintech Service are usually heavily regulated);
  7. Property Law;
  8. Accounting Requirements;
  9. VAT Rules;
  10. Audit Requirements.
Mentorship
FAQ

WHICH TYPES OF COMPANIES YOU CAN INCORPORATE IN THE UK?

There are several types of entities that can be incorporated in the UK. The three most common are:

  • LIMITED COMPANY;
  • LIMITED LIABILITY PARTNERSHIP (LLP);
  • UK ESTABLISHMENT (a branch or a place of business).

HOW DOES THE BRITISH TAX SYSTEM WORK?

Regarding to the chosen corporate structure, the company, establishment or LLP must register with Her Majesty’s.

Revenue & Customs (HMRC) to pay all of the business’s tax liabilities.

  • General Corporate Tax rate is 19% (by the 1 April 2021), the tax rate can be reduced to 10% when the taxable profits can be attributed to the exploitation of patents, a lower effective rate of tax applies;
  • Value Added Tax (VAT) rate is 20% is a form of indirect tax and it is charged on the provision of most goods and services provided in the UK.
 

% of VAT

What the rate applies to

Standard rate

20%

Most goods and services

Reduced rate

5%

Some goods and services, eg children's car seats and home energy

Zero rate

0%

Zero-rated goods and services, eg most food and children's clothes

 

  • Income Tax (Pay as you earn - PAYE) rate is deducted from an employee’s salary on a monthly basis. An employer must automatically pay these taxes to HMRC.

HOW DO I SET UP MY FIRST PAYROLL AND REGISTER FOR PAYE?

If you decide to run payroll yourself, you need to complete certain tasks to pay your employees for the first time. You can choose when and how often to pay your employees.

  1. Register as an employer with HMRC and get a login for PAYE Online;
  2. Choose payroll software to record employee’s details, calculate pay and deductions, and report to HMRC;
  3. Collect and keep records;
  4. Tell HMRC about your employees;
  5. Record pay, make deductions and report to HMRC on or before the first payday;
  6. Pay HMRC the tax and National Insurance you owe.

Most employees in the UK are eligible for a personal allowance of tax-free income. There are varying levels of income tax rates in the UK:

Band

Taxable income

Tax rate

Personal Allowance

Up to £12,570

0%

Basic rate

£12,571 to £50,270

20%

Higher rate

£50,271 to £150,000

40%

Additional rate

over £150,000

45%

WHAT IS THE EMPLOYMENT LAW IN THE UK?

The UK employment law is derived from common law, domestic legislation and European law. The last one is the source of a number of employee protections within the UK, while also safeguarding an employer’s interests and keeping the relationship between the two fair.

The UK law grants employees a range of protections that create obligations and potential risks for employers. Although these are generally less stringent than in other European countries, you will nonetheless need to be aware of them:

  • a general duty to provide a safe place of work, safe access and safe work systems;
  • a requirement to provide a written statement of terms and conditions of employment to employees within two months of commencement of employment;
  • an obligation not to discriminate against employees;
  • an obligation to pay employees at least the national minimum wage;
  • various benefits in connection with giving birth, adoption and other family situations;
  • a requirement not to allow a worker to work beyond 48 hours per week;
  • a duty to give each employee a minimum amount of 28 days paid holiday each year;
  • various rights for employees to protect them in the event of termination of employment.

It is beneficial for an employer to make a comprehensive contract of employment to each employee. This can include all of the terms and conditions of employment, covering the rights described above, and in addition protect the employer’s business interest.

WHAT ARE INTELLECTUAL PROPERTY RIGHTS IN THE UK?

The UK is highly ranked for offering businesses a developed regime for the protection and monetisation of intellectual property rights (IPR). The main types of IPR in the UK are:

  • TRADE MARKS, BOTH REGISTERED AND UNREGISTERED;
  • PATENTS;
  • DESIGNS, BOTH REGISTERED AND UNREGISTERED;
  • COPYRIGHT;
  • TRADE SECRETS.

The best way to manage your intellectual property (IP) is to take stock of your IP assets regularly.

WHAT IS THE NEW LAW FOR IMMIGRATION IN THE UK?

The new immigration point-based immigration system applies to both EU citizens and non-EU citizens. It gives a priority to high-skilled workers, skilled workers, students and a range of other specialist work routes including routes for global leaders and innovators.

Under the points-based immigration system, anyone coming to the UK for work must meet a specific set of requirements for which they will score points (at least 70 points). New system provides flexible arrangements for UK employers to recruit skilled workers from around the world.

As an entrepreneur it is possible to apply for a special type of visa, as a:

  • Start-up visa (for those who wants to set up an innovative business in the UK - it must be something that’s different from anything else on the market)
  • Innovator visa (for those who wants to set up an innovative business in the UK - it must be something that’s different from anything else on the market, furthermore your business or business idea should be endorsed by an approved endorsing body

• Investor visa (you need to  invest £2,000,000 or more in the UK)

WHAT ARE THE UK FINTECH SPECIALISMS?

The UK FinTech ecosystem is known as a second highest ranking globally. It has the world’s highest concentration of financial and professional services firms and it increases up to 21% year by year.

The UK’s FinTechs involve 25 different specialisms, which can be accumulated into 8 broad categories – banking, RegTech, InsurTech, WealthTech (including PFM and cryptocurrencies),  lending, payments, quote aggregators and accounting, auditing and cashflow management.

HOW TO SET UP AN OFFICE IN THE UK?

When you decide to incorporate a business in the UK you need a space for your company. The UK provides a number of different options in which to do business, depending from its needs, flexibility, location and cost. The four main models of office space available for companies are:

  • Freehold or long-term leasehold spaces;
  • Serviced office locations (usually short-term);
  • Co-working spaces (need to get a license to occupy);
  • In-house at various accelerator and incubators (need to get a license to occupy).

The property right that a company acquires will depend on the type of office space chosen.

WHAT ACCOUNTING STANDARDS DOES UK USE?

After 1 January 2021 companies need to use UK-adopted International Accounting Standards (IAS) instead of EU-adopted IAS, regarding to the guidance. UK companies will also need to appoint a UK-registered audit firm to sign any audit reports on their behalf. These changes will effect a small number of companies operating in the UK.

DOES MY UK SUBSIDIARY NEED AN AUDIT?

By the UK law all companies based in the UK require an audit. However, there are several exceptional cases from this rule, based in the size of the company or group. Your company should be a Private Limited Company and has at least 2 of the following:

  • an annual turnover of no more than £10.2 million;
  • assets worth no more than £5.1 million;
  • 50 or fewer employees on average.

Your company must have an audit if at any time in the financial year it’s been one of the following:

  • a public company;
  • a subsidiary company;
  • an authorized insurance company;
  • carrying out insurance market activity;
  • involved in banking;
  • an issuer of electronic money;
  • a Markets in Financial Instruments Directive (MiFID) investment firm;
  • an Undertakings for Collective Investment in Transferable Securities (UCITS) management company;
  • a corporate body and its shares have been traded on a regulated market;
  • a funder of a master trust pensions scheme;
  • a special register body;
  • a pensions or labour relations body.

Average Professional Fees:

Usually the full package to incorporate your business in UK includes:

  1. Formation of Company;
  2. Company registered address;
  3. Virtual Office set up;
  4. Mail Forwarding Service.

The cost involved starts at: $1.600

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uk

EXTRA SERVICES YOU MAY CONSIDER TO EVALUATE:

  1. Local Nominee Director;
  2. Bank Account Introducing Service;
  3. Bookeeping Service;
  4. Accounting Service;
  5. Audit Service;
  6. FCA Licence;
  7. Real Estate Brokerage;
  8. Recruitment Service;
  9. Immigration and Visa Service;
  10. Taxes Regime Service.
How Can I Help you?

Unlike lawyers and accountants who focus on theory, I’ve done most of the stuff for myself and I know what works – and what doesn’t – especially in the UK as I have been operating for the last 15 years and I am an FCA Approved Person for more than 5 years.

Working as CEO of Astorts Group, my team and I have received many inquiries and helped hundreds of clients to find a cost effective way to operate in the UK, to have all corporate and legal issues sorted, to file their accounts with CH and HMRC, to relocate their business to the UK, to buy properties or emigrate to the UK, to apply for FCA Licence like SPI, API, EMI, SEMI, Credit Broker, Investment Advisor and many more.

My main focus is all about getting you across the “finish line” as easily as possible, so you will leverage my network and my experience to successfully get where you wanted.

Companies Support
Consulting

During the Call we will:

  • Get acquainted, analyse your situation;
  • Evaluate how to incorporate your business in UK;
  • Let you have a clear idea about tax system and main corporate Issues in the UK after Brexit;
  • Evaluate the possibilities you have to emigrate to UK;
  • Develop a strategy to let you succeed in UK;
  • Have a clear idea about your obligations in UK;
  • Draw up an action plan for you or your business to relocate to the UK.

If you already know the service you will need, book a call back with one of our Team Members and we will get you a bespoke quote.

    If you are not sure about which service to enquiry, but you are sure that the UK is the best choice for you, book a BASIC consulting call.

    doing business in UK

    Basic


    60 minutes one-to-one with Alex on line session to clarify your doubts about the options you already have and to advise you how best to assist you or your business in the UK. You will have a final idea and an email about how to implement it step by step.
    $490
    Now only $245!

    Buy now
    If you are not sure about which service to enquiry, and you are not sure that the UK is the best choice for you and you want to explore other jurisdictions, book a PREMIUM consulting call.

    Book Alex

    Premium


    90 minutes one-to-one with Alex on line session to evaluate your business idea or your personal issue and consider which jurisdiction and which structure will be the most appropriate for you. You will have a final idea and an email about the best solution for you and how to implement it step by step.
    $680
    Now only $340!

    Buy now

    Take your chance to learn from who have done most of the stuff he is talking about for himself and he knows what works – and what doesn’t – in the real world.

    limited offer
    Discount 50% off

    Why to entrust Alex?


    Alex is an entrepreneur, fintecher, investor, blogger and author based in London and operating mainly in Europe, Asia and Oceania.

    London Sydney New York
    Alex is an UK FCA (Financial Conduct Authority) and NZ FSPR (Financial Service Provider Register) Approved Person and has great experience as director of regulated companies.
    Alex uses to dedicate part of his life to inspire others and help them achieve the most out of their lives.

    Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech.

    Alex is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco.