Your business is doing well, and you think it is time to expand your company. But where to? Where do you take your business where it can truly thrive?
You have probably heard that expanding a business internationally can be lucrative, and you have heard right. What’s more, entrepreneurs from all over the world seem to have their eyes on the UK. Are you one of them?
If you want to expand your business in that direction, there are a few things you will have to do to get it right. Everything from how to acquire business loans to operational laws in a foreign country can be confusing. If you need a little guidance, you have come to right place.
RELATED ARTICLE: WHY YOU NEED A CHANGE MANAGEMENT CONSULTANT
Are You Ready to Expand Your Company to the UK?
Expanding your company to the UK does not have to be a grueling or confusing experience. You just need a little guidance. While the UK is one of the most coveted locations for international business expansions, it can be challenging to set up in.
For example, you will need to register your business and ensure you comply with certain regulations. Let’s look at what you need to do.
Indicate the Type of Legal Entity You Will Operate
When you expand your business to the UK, you will need to indicate what type of legal business entity you will be operating. In the UK, the most common options include a limited company, a branch office, a limited liability partnership, a sole trader, and a partnership.
Register and Set up the Company
Before you expand your company to the UK, you will need to register your company with Companies House. The registration only takes 48 hours. However, you will be required to provide certain supporting documents based on the nature of your business.
It is best to check directly with Companies House to learn what is required. Thereafter, you will need to register with the HMRC for corporation tax. This has to be done within the first three months of trading.
Register for Bank Accounts and Apply for Business Loans
Now you need to think about how you will manage your finances after you expand your company to the UK.
Before you can do any trading, you will need to have a UK bank account registered and opened. The bank will check to ensure that your company is credible. This can be a lengthy process due to anti-money laundering processes. For example, sometimes it can take as long as six months.
It is easier if your chosen home bank has a branch in the UK. Look into this first before you start any processes.
Once you expand your company to the UK, you’ll find that business loans in the UK work similarly to those in most countries. You can opt for an unsecured business loan to start up your business, receive an amount between £1,000 and £500,000, and the amount will be in your business bank account (based in the UK) within 24 hours.
To apply for unsecured business loans in the UK, you must meet with simple criteria. You must have already registered your business in the UK and been trading for a minimum of six months. Also, you must be turning over at least £5,000 a month, and you must be older than 18 years of age.
Ensure You Are up to Date with Regulatory Requirements
The UK trading space is one that operates openly and transparently. You will find that trading is made simple and as convenient as possible when you expand your company to the UK. The country focuses on making business easy for its people.
That being said, there are strict regulations in place that all businesses must be aware of and adhere to. These relate to industrial emissions, pollution control and handling, waste disposal, and employment.
Register for Tax Management and VAT When You Expand Your Company to the UK
When you expand your company to the UK, you will be exposed to tax. Tax can be tricky if you don’t understand it. However, the UK taxation system is easy to understand.
If you have a presence in the UK and are making a profit, you are liable for tax. If your business turnover is more than £85,000 in a 12-month period, you must be registered for VAT. It’s a good idea to get some clarity on UK taxation, VAT, corporate income tax, and employment tax.
Oh, and One Last Thing Before You Expand Your Company to the UK
Expanding your company to the UK will be exciting and offer lucrative opportunities. You just need to make sure to take the right steps when you’re making the expansion a reality.
The UK marketplace awaits. The next step is up to you.