If you live outside the European Economic area, you must have an Entrepreneur visa to setting up a company in UK. The cost of an Entrepreneur visa depends on where you are and the manner in which you apply. With an entrepreneur visa, you can stay in the UK no longer than three years and four months. However, you can apply to stay in the UK without any time limitations, provided that you have lived in the UK for 5 years.
You must have capital of atleast £50,000 to do business in the UK. This capital must be granted by either the UK government, a UK seed funding competition or a venture capital. This capital must not include personal funds or funds from any other intermediary. This capital is necessary to be qualified for an Entrepreneur visa and you have to be atleast 16 years old. In addition to being able to maintain yourself while in the UK, there are other requirements such as passing the English Language requirement and achieving 95 points on the points-based system.
You can share your capital with another entrepreneur provided both of you meet all the conditions for applying.
You must have the ability to speak and write English Language to do business in the UK. You can prove this ability by passing an authorized English Language Test, or maybe, you have gained an educational qualification that was instructed in English. This qualification must be acknowledged by UKNARIC as being correspondent to a bachelor degree from the UK. If you are a citizen of a country where English is its first language, it won’t be necessary for you to verify that you have English Language ability.
Depending on the nature of your business, licenses are necessary for setting up a company in the UK. You can apply as a Graduate Entrepreneur or a Post Study worker.
Initially, you will need a UK address to establish a business account. Using your current account in your country, establishing a UK account in your country or in the UK are all options for setting up your business account.
National Insurance and VAT
You will need a National Insurance number to register your business in the UK. Therefore, you are expected to make payments to the National Insurance. These payments are contingent on the amount you earn. If your Gross Revenue is more than £81,000 then you must register for, and pay, VAT.