The business environment in London offers varied opportunities for both locals and foreigners who want to set up their companies in compliance with the local legislation. As soon as the legal business structure is chosen, entrepreneurs can decide on the plans, activities and start the incorporation process. Because the industries in UK face lots of challenges, it is recommended, first of all, to observe the local rules and regulations for business in order to avoid any business crimes that might arise.
Choosing the business structure
Foreign entrepreneurs in London can easily set up partnerships, limited liability companies, sole proprietorships, branches and subsidiaries in respect to the laws that supervise the activities of such entities and to the rules and regulations set by the registration authorities. As it is known, the UK has a reputable business climate and it is extremely respected by investors worldwide.
Opening a company as a non-UK resident
Investors from abroad can easily set up limited liability companies in UK in respect with the Companies Act 2006 and observe the rules and regulations of the Companies Houses and HMRC (Her Majesty Revenue & Customs). The incorporation procedure starts with a name verification with the Companies House in London and with the Articles of Association, the firms’ important documents which comprise information about the owners, the business address, the minimum share capital, the contribution of the owners and their responsibilities in the firm. The following steps are part of the registration process for a business in London:
- appointing the legal representative of your business in London;
- appointing the board of managers or at least one director in charge of your future operations;
- checking with the SIC (Standard Industrial Classification) for your activities;
- drafting an internal document with information about the responsibilities of the owners.
Opening a business in UK has the same rules for nationals and for foreigners, except the citizens from non-EU countries which need to apply for certain visas. Also, the registration procedure can be supervised by a company formation agent who can handle the entire process for incorporating a business in London.
As soon as your company is incorporated, a registration number will be provided which can be used for tax registration purposes in UK.
Avoiding business crimes
The prolific business opportunities that are to be found in London in varied industries allow, unfortunately, for situations in which tax fraud and corruption might intervene. Also, companies can face specific offences like conspiracy to defraud, money laundering or insider dealing cases. In UK, the business crimes are investigated by the Serious Fraud Office and by the Financial Conduct Authority. It is strongly recommended to have a complete idea about the business legislation in London before commencing any activities, this way avoiding the above-mentioned business crimes. Legal counseling from a local solicitor is in most cases a necessary support for both local and foreign entrepreneurs who want to avoid business crimes.