South Africans launching UK businesses are on the increase. Because creating and operating a company in the UK has advantages like reaching more customers, international exposure, and a friendly business environment.

Thanks to the advances in information technology, you can now run an international business without being in the UK.

This article will help South African citizens who want to start their own UK business by providing essential steps and things to consider.

Choosing the Right Business Structure

Choosing the right business structure is important because it will impact how you run your business. You can work for yourself using your name or create a company.
Working as self-employed or launching a limited company has different ways of handling business liabilities and debts, taxation, and business ownership.

If you are self-employed, your personal and business finances are combined. If you make a limited liability company, you can keep your personal and business finances apart.

Click here to learn the difference between self-employment and a limited company.

Registering As Self-Employed

You can register as self-employed in the UK even if you don’t reside in the UK. The registration process and requirements are the same for UK residents.

Sign up for Self-Assessment

To register as self-employed, you must complete the Self-Assessment registration process with HM Revenue & Customs (HMRC). You can do this online on the HMRC website.

Correspondence Address

You need to give HMRC a UK address where they can contact you. You can use the address of a friend or relative, a registered agent, or a professional service provider that offers a mailing address service.

Non-resident foreigners don’t usually register as self-employed in the UK because there are few tax benefits. Most non-residents prefer to register as a UK Limited company.

Registering As a Limited Company

If you decide to set up as a Limited company, register your UK company with Companies House

• Choose a company name representing your brand and matching your business goals.
• Appoint directors as required by UK company law. Usually, the business owner is the director. Having a company secretary is good to have, but not mandatory.
• Once you have a business name and appointed a director, you can register your company by submitting the required documents and paying the fees.

It costs £12, and you can pay with a bank or credit card. Most of the time, your business will be formed within 24 hours.

Company Formation Agents

If all of these steps seem like a lot, don’t worry. Get someone else to do it for you for a very low fee.
Imagine having a team of experts helping you create your UK company.

Did you know that such professionals exist? Yes, some agents help with company formation, and they are called company formation agents.

Company formation agents are experts in creating your company and ensure they don’t miss any vital details.
They handle the paperwork and understand legal requirements. They make it easy for foreign start-ups because they know UK regulations well and have efficient processes.

Opening a Business Bank Account

You need to open a business bank account in the UK to handle financial transactions and manage your company’s cash. After all, you are in this to make money. So it is crucial that you choose a bank that keeps your money safe and meets all other banking needs. And, as a South African, important bank functions can include multi-currency facilities and other cross-border facilities.

Prepare the necessary paperwork, such as proof of identity, proof of address, and information about registering a business, to speed up the account opening process. Challenger banks such as Starling, Monzo, and Revolut make account opening easy.

Opening a business bank account separates your personal and business finances. It makes your company look professional and helps with financial transparency.

Many UK banks offer business bank accounts specifically designed for small businesses or start-ups like yours. See the top banks for foreign companies by clicking here.

Company Formation agent package usually includes providing banking solutions for your business. So, take the hassle out of looking for a business bank using a company formation agent.

Understanding UK Tax Duties

Understanding UK taxes is vital for running a thriving UK business. You must register for UK taxes and follow all tax rules.
Knowledge of UK taxes includes your VAT and Corporation tax.
Getting professional advice for tax planning and compliance is a good idea. It’s better to let experts handle tax and legal matters so you can concentrate on growing your business.

Establishing a UK Office or Presence

You may need an office or presence in the UK for your business. Think carefully before renting or leasing office space. Consider location, accessibility, not to mention the cost, which can be very high. Do you really need a physical space? Or, can your business be conducted virtually?
Virtual offices and co-working spaces are affordable options that provide flexibility and a professional address for your UK company.

Understand UK Employment Laws

If your company in the UK wants to hire workers, you need to know about UK employment laws.
Knowing the rules about hiring, contracts, hours, and employee rights will help create a fair and legal workplace.

Managing Finances and Accounting

Managing your finances and accounting well is important for your UK company’s long-term profitability.
You can use cheap accounting software to keep track of your finances and create reports.
Hire an accountant to help with your HMRC and Companies House annual financial reports.

Building a Professional Network

Networking is crucial for growing your UK business. And joining business groups and going to events can help you meet people in your industry, find new clients, and work with others.
Use social media and online platforms to expand your professional network and offline networking activities.
Collaboration with local South African firms and suppliers can also improve your UK company’s operations and growth possibilities.

Final Thoughts

Registering a limited company in the UK as a non-UK resident South African opens up exciting business and personal growth possibilities.
But it’s important to know and meet your responsibilities to ensure you follow UK tax rules and other legal requirements.

So, understanding your tax obligations and meeting all legal needs can give your business a strong start.

By recognising the opportunities for your company in the United Kingdom, you can position yourself for success.

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