Are you a Bangladeshi national looking to commence business operations within the UK? We’ve got great news for you; it’s more feasible than you might imagine. Learn how to start a UK business as a Bangladeshi national. Our guide simplifies the process, addressing essential steps for non-residents starting a business in the UK.
The UK stands as one of the largest economies globally. It ranks as the sixth wealthiest country by GDP and boasts one of the highest wealth per capita among economic powerhouses. With a robust economic structure, extensive legal frameworks, and a diverse consumer market, every entrepreneur dreams of launching a business in the UK.
But how exactly can you navigate this seemingly complex process?
This guide from Techcastle Digital Ltd elucidates how to initiate a small business in the UK. We’ll explore setting up a limited company, the necessity (or lack thereof) for an entrepreneur visa, and all other crucial aspects that international entrepreneurs, especially Bangladeshi individuals, would want to know.
Are you contemplating starting a business in the UK but unsure if it’s the right decision? As a non-resident, several benefits accompany starting a business in the UK.
Access to European Markets
One significant advantage of initiating a business in the UK is gaining access to the European market. With over 500 million consumers, the European market stands as one of the largest globally.
UK businesses export goods and services worth over £16 billion to Europe annually. Therefore, if you’re eyeing this expansive market, starting a business in the UK presents a significant opportunity.
Another advantage of conducting business in the UK is access to a skilled workforce. With over 30 million people employed in various occupations, including a large proportion in skilled roles, businesses gain access to a vast pool of talented workers.
Moreover, the UK boasts one of the highest employment rates for university graduates in Europe. Thus, if you seek highly educated employees, starting a business in the UK might be the ideal choice.
Favourable Tax Environment
The UK offers favourable tax rates for businesses. With a corporation tax rate of 20%, lower than many other European countries, and multiple tax reliefs and exemptions available for specific sectors like research, development, or environmental protection, it emerges as an attractive destination for companies aiming to minimise tax liabilities.
Consumer Trust and Credibility
Establishing trust with potential customers is crucial in business. Registering your business in the UK sends a strong signal that you’re a legitimate and trustworthy company.
However, merely registering your business isn’t enough; ensuring your registered address appears legitimate is also crucial. Registering your business with a London address helps reassure potential customers about your company’s legitimacy and trustworthiness.
Can a Non-Resident Bangladeshi Start a Business in the UK?
Yes, it might surprise you, but individuals of any nationality, including Bangladeshi nationals, can initiate a business in the UK.
Residential status or residing in the country isn’t a prerequisite. The only requirement is that the company must be registered with a UK address for accountability and correspondence, not to validate the business’s ownership.
Foreign nationals can easily acquire an address to register with Companies House, whether through a purchased or rented property, a friend’s or family member’s property, or a virtual office address. Techcastle Digital Ltd can assist in securing an address for your business.
Does a Non-Resident Bangladeshi Need a Visa to Start a UK Business?
There’s no need for a visa to establish a business in the UK. When setting up a business, there’s no obligation to provide proof of the right to work. However, initiating a business does not grant the right to work in the UK.
You can start a business in the UK but cannot work in the country without the proper visa. For instance, starting an electrical engineering business without the required working visas and earning as part of the UK workforce isn’t feasible.
Generating Revenue through Your UK Limited Company without a Work Visa
Work visas grant access to the UK job market, enabling you to earn money as an employed member. However, starting a business in the UK allows you to generate income without a visa.
You can actively trade goods through your UK business while operating from your home nation. For instance, living in Bangladesh and selling fashion products, starting a UK business allows you to trade under a British brand, enhancing your brand’s sales power within the domestic market.
Additionally, hiring individuals authorised to work in the UK enables them to generate income through your business, earning profits on that income while you, as the owner, comply with tax and legal obligations.
How to Start a UK Business as a Bangladeshi? Click Here to register a limited company in the UK
Important Aspects to Consider When Starting a Business in the UK as a Bangladeshi
To ensure a smooth initiation of a UK business as a Bangladeshi individual, it’s crucial to be aware of essential details:
You Don’t Mandatorily Need a Business Bank Account (But It’s Beneficial)
While not a legal requirement for non-British nationals to register a business bank account in the UK, it is highly advantageous. Having a UK bank account streamlines money management, avoiding significant costs related to international money transfers and local trade fees.
It’s advisable to consider signing up for a UK bank account to optimize money movement. However, popular bank applications might pose challenges for foreign nationals without an entrepreneur visa. Techcastle Digital Ltd collaborates with banks like Lloyds and Barclays, aiding in progressing your application and securing a bank account.
You Can’t Earn Untaxed Income
Initiating a new business in the UK as a Bangladeshi individual doesn’t entitle you to the self-employed personal allowance grant without a work visa. Therefore, taxation applies to all earnings from your business.
It’s essential to note potential obligations for income tax in your home nation as well. Managing tax liabilities prudently is crucial, and seeking guidance from expert accounting teams can help optimize earnings.
You Don’t Have to Navigate Business Setup Alone
While registering UK companies may seem straightforward, lack of familiarity with the legal structure and UK business practices can lead to confusion. Starting a business involves applying for various government approvals from entities like Companies House and HMRC.
Engaging the support and services of an agent experienced with Companies House procedures can mitigate challenges in setting up a business in the UK as a Bangladeshi national. Techcastle Digital Ltd offers assistance in registering a company in the UK for non-residents.
Insurance Is Recommended After Establishing a UK Business
Upon opening your UK business, obtaining insurance swiftly is advisable. Business insurance acts as a protective measure, particularly in navigating the dynamic landscape of UK markets, depending on the industry you enter.
While not mandatory, having business insurance can provide reassurance and act as a safety net, especially for those less familiar with UK business systems.
How to Initiate a Business in the UK as a Bangladeshi National
Registering a limited company as an overseas Bangladeshi national mirrors the process for a British national. The same details and documents are required, without additional immigration requirements or charges for non-residents.
Here are the necessary steps:
Company Name: Every business requires a unique name. Utilise UK Gov’s name check tool to find an ideal name for your company.
Business Address: A UK address registered to your business is mandatory. If access to a UK address is a challenge, Techcastle Digital Ltd can assist by registering your business at a prestigious London address.
Director Information: A UK company needs at least one director. Gather and prepare details of this individual.
Shareholders: For public trading companies, issuing shares is necessary. Have details of at least one shareholder prepared.
Documents of Formation: Prepare a memorandum of association and articles of association, essential agreements outlining responsibilities and business operations. Techcastle Digital Ltd can support in crafting these documents. Once you’ve collected all necessary information, proceed with registration with Companies House and HMRC. Remember, details like the business address can be altered in the future, accommodating changes or relocation.
Commence a UK Limited Company Today with Techcastle Digital Ltd
At Techcastle Digital Ltd, we understand that the process might seem complex. If you seek assistance in setting up your business as a Bangladeshi national, we offer comprehensive registration support for non-residents at affordable rates.
Our services encompass registering your business with Companies House and HMRC, providing a registered business address, and facilitating the establishment of a UK bank account.