Open a Business in the UK as a Foreigner

Those who open a business in the UK as foreigners enjoy a welcoming business climate and a low number of procedures related to business creation. This article discusses the main advantages for foreign entrepreneurs in Great Britain. If you are interested in the main set up processes, you can read this informative article presented by our lawyer in London.

Quick Facts
Entry requirements for EEA citizens	Travel for short trips without a visa
Entry requirements for non-EEA citizens	Required according to nationality
Mandatory residency required to open a company in the UK as a foreigner	Not applicable
Residency by investment scheme available (Yes/No)	Options for residency under the Innovator Founder Visa, for example. Conditions apply.
Minimum investment amount for residency by investment (if applicable)	No specific minimum investment, but proof of sufficient funds for doing business in the UK is required.
Relocation with family members for foreign investor residence permit holders	Separate applications for family members are submitted.
Types of companies available to foreign investors	Private and public limited companies are commonly used.
Full foreign ownership permitted (Yes/No)	Yes
Operation costs in the UK	Corporate taxes, utilities, insurance, and others (see below for some examples)
Payroll costs in the UK	The salary owed to the employees and the employer’s portion of the national insurance contribution (NIC). NIC payments vary on a yearly basis.
Accounting costs (approx.)	Prices vary according to business size, number of employees and monthly transactions and entrepreneurs can expect to pay at least £150 per month for bookkeeping.
Employment costs (minimum salary)	The 2025 minimum wage is £12.21 per hour (for employees aged 21 and over).
Office rental costs (approx.)	Office rental costs are higher in London. Entrepreneurs can expect to pay more than £400 per month for an economical office space.
Number of companies incorporated each year (approx.)	890,684 company incorporations in the financial year ending in 2024.
Regulatory environment makes it easy to open a business in the UK as a foreigner (Yes/No)	Yes

Main advantages for foreigners who set up a business in the UK

The United Kingdom offers a stable, robust global market, with notable advantages in terms of ease of doing business and the general business climate, especially in London.

Below, our lawyer in the UK lists some of the most important reasons why opening a UK business is advantageous for foreign investors:

• There are no language barriers for foreign entrepreneurs who speak English;
• London is one of the top business and financial centres in the world. It also offers strategic advantages in terms of its central time zone and great infrastructure;
• Business owners have access to a pool of skilled workforce;
• Investors and entrepreneurs benefit from funding and financial schemes that offer tax relief to investors and funding in the early stages of business development, subject to conditions.

Ease of doing business in the UK

Starting a business in the United Kingdom is perceived as an easy task. This is true for the overall steps to complete the procedure as well as for subsequent issues that may be encountered by foreign investors.

The Doing Business score, as presented by the World Bank Group, offers us useful insight into the general advantages for those who open a business in the UK as a foreigner. We summarise below the advantages related to the business set up procedures:

• The time to complete the application form for the registration with the Companies House is less than 1 day;
• The easy registration, along with the fact that other processes are streamlined (such as VAT registration), puts the UK at an 82.4 score out of 100 for ease of handling the setup procedures;
• The UK’s score in terms of time for setting up a business is 96 out of 100. The country scores maximum points for the low costs and the fact that no paid-in minimum capital is required.

Administrative and running costs for UK-based businesses

The decision to start a business in London or in another UK city should be well planned and backed by a sound business plan, with clear knowledge of the intended market and possibilities for expansion.

Running a business in the UK is not burdensome and many of the registration procedures, along with the subsequent mandatory submissions and filings, are digitalized and/or subject to streamlined rules.

Once you have decided to set up a business in the UK as a foreigner, and the company registration phase is complete, you can expect the following costs:

• Office rental costs: foreign investors should prepare for higher rental costs in London, even for small offices (depending on location) and lower ones for businesses based in other parts of the country;
• Overhead costs: apart from rent, included in this category are also utilities and other costs that are not related to producing the goods or services, but are mandatory for business functioning;
• Costs with employees: wages plus weekly national insurance contributions are payable by the employer and these vary according to the worker’s income.

As far as business laws are concerned, there are no restrictions on foreign investments and full foreign ownership is permitted. Our lawyers in England can give you more information about the relevant laws upon request.

Do you want to know more about how to start a business in the UK? Contact our lawyer in the UK for more information about the advantages of doing business here as a foreigner.