The Ultimate Step-by-Step Guide to Starting a Business in the UK

Are you curious about how to start a business in UK? This guide will take you through the steps to start a business in the UK while you are planning to enter the UK business market via the UK self-sponsorship visa route. 

Here is what you need to know:

1. Find your business idea:

The initial journey about how to start a business in the UK starts with having research around the idea for your business. You must conduct a research about your ideal customers, your look a like business owners, and demand in the market. 

These are the questions you ask yourself:

• Does your product or service solve the issues of your ideal customers?
• Who is your ideal customer?
• How is your product or service different from what your competitors offer? 

You can get help for this from tools available like Google Trends, Statista, and the industry-based reports that give you the exact insights for the business model you have selected. If you are thinking of going via the UK self-sponsorship route, you must make sure your business idea is in line with the regulations and guidelines set by the Home Office for business owners.

2. Choose the structure of your business:

The UK provides various business structures that you can opt for namely:

• Sole Tradership
• Partnership
• Limited Company
• Social Enterprise

If you are choosing the UK self-sponsorship visa then taking the option of a limited company would be the best option for you as it is perfectly in line with the visa requirements and provides credibility. 

3. Create a business plan:

A well-created business plan comes out as a roadmap for your business and is important for getting funding. You can include the following things in the business plan:

• An executive summary
• Description of your business
• Analysis of the market
• Strategy for marketing your business
• Projections of the finances
• Your operations plan

The business plan should clearly show your goals, strategy, and financial planning. If you are applying for the UK self-sponsorship visa route, you must demonstrate that in the future you would contribute to the growth of the UK economy and create jobs in the UK. 

4. Getting your business registered:

When you are prepared with your plan, you can start with registering your business. The process might differ depending on the business structure you have opted for:

When you are following this process, you also need to choose your business name. Make sure your name is unique and doesn’t conflict with the trademarks that are existing in the UK. 

5. Create a business bank account

Differing your personal and business bank account is important while you set up a business in the UK. You can open a business bank account with the UK’s reputable banks. The bank needs the following documents:

• Your identity proof
• Your address proof
• Registration of business documents

Various banks provide customised packages for new businesses, so you can compare features like the funds needed, online banking and customer support services. 

6. Get required licences and permits

On the basis of your industry, you require specific licences and permits to run the business legally. For example: if you are planning to start a food business you will need health and safety inspection for which you will need certificates. If you are starting a construction company, you will need compliance with building regulations and certifications. If you are going for a retail business, you may need licences and certifications for selling specific products like Alcohol.

You can go to the UK Government’s website for the detailed information on various licences and certifications for the industry that you have chosen. 

7. Tax registrations: 

Make sure you are compliant with the UK tax regulations by getting yourself registered with HMRC. Some important taxes include: 

Corporation tax: for companies

Value-added tax: Applicable for certain amount of turnover

Pay as you earn: Need for employees

You can visit the HMRC’s portal for detailed information

8. Get funding:

If you are starting your business then it’s necessary to procure funding, you can look  out for the following funding options:

• Your savings
• Loan from a bank
• Venture capital
• Grant from the Government
• Crowdfunding

For individuals planning to go via the UK self-sponsorship visa route, showing that you are financially stable is important. It is crucial to include the evidence of funds in the application for your visa to demonstrate that you are able to provide financial support to your business. 

9. Be compliant and adaptive

Running a business comes with fulfilling responsibilities and abiding by the rules. You must take care of the following while running your business. It includes the following:

Annual filing of your accounts with companies house

Regularly paying the taxes

Renewal of licences and permits

In addition to the above, you need to stay adaptable. You also need to keep track of new rules and regulations set up by the government and also keep a track of new policies that the government has introduced.

The video below provides valuable insights on this topic.

More information if you are going through the self-sponsorship visa route UK:

The UK self-sponsorship visa route is well-planned and designed for entrepreneurs like you. It is not the actual visa type but a combination of a Sponsor Licence and a skilled worker visa under which you employ in your own UK company through sponsor license and skilled worker visa. 

Especially if you are an overseas entrepreneur who is planning to start a business in the UK, this route is the best option for you. Here is the process in short:

1. Forming a company in the UK: You can follow the above steps to start a company in the UK
2. Getting a sponsor licence: you should apply for sponsor licence to sponsor yourself as a skilled worker visa.
3. Apply for a skilled worker visa: after you have obtained a sponsor licence, you must apply for skilled worker visa to live and work in the UK.

This route lets you establish and operate your business while also contributing to the UK economy by creating more jobs in the UK by establishing your business in the UK.