Setting up a business in England after Brexit

Table of contents

1. What are the ways of doing business in the UK?
2. Who can incorporate a company in the UK?
3. How to register a company in the UK?
4. Self-employment in the UK – an excellent solution for freelancers
5. The impact of the UK leaving the EU – how does it work in practice?
6. How to relocate a company to the UK?
7. Registering a company in the UK after Brexit – can you provide services from outside the UK?
8. Setting up a company in England after Brexit – summary
9. FAQ – frequently asked questions and answers

Running a business outside Poland is a dream for many entrepreneurs. Until recently, one of the most favourable options seemed to be doing business in the UK, with its few formalities, many exemptions and favourable tax regime. However, following the UK’s exit from the European Union, many people are questioning whether it will still be worthwhile to set up a company in England after Brexit. If you are considering this, you should read this article.

What are the ways of doing business in the UK?

Before you decide to incorporate a company in the UK, you need to consider whether it is right for you and, most importantly, which option is best. There are several types of company to choose from, with different formalities and tax obligations:

• Self-Employment (self-employment),
• Limited Company,
• Partnership,
• Limited Liability Partnership (LLP),
• Public Limited Company (PLC).

The best solution for you will depend on your particular circumstances. You need to consider factors such as your business profile, the number of people you plan to employ and your projected income. A well-considered decision can help you run your business in the best way possible. On the other hand, rushing into a decision may result in unnecessary obligations and unfavourable tax rules.

Who can incorporate a company in the UK?

In most cases, only individuals with UK residency status can incorporate a company in the UK. This means that you must have a National Insurance Number (NIN) and an address in the UK.

However, there is an exception – a limited company allows you to run a UK business while living in Poland. In this case you do not need to have a permanent address in the UK.

How to register a company in the UK?

Let’s say you’re already aware of all the options available to you and you’ve decided to set up a company in England because it’s still worth it, even after Brexit. So the question remains – how do you go about it?

It all depends on the type of business you choose. For example, the process is completely different for self-employment (the equivalent of a Polish sole proprietorship) and for running a company such as an LTD.

Depending on the type of company you choose, you will have different responsibilities and the registration process in the UK will vary. However, the amount of paperwork should not be the most important factor in your decision. After all, you don’t have to do everything yourself.

Most entrepreneurs seek the help of an experienced tax advisor, even at the registration stage. You can do it yourself, and you won’t have to worry about complicated formalities. It’s even better to do this at the stage of choosing the type of business. With the help of an experienced accountant, you can be sure that you are choosing the most beneficial solution for you and avoiding unnecessary costs.

Self-employment in the UK – an excellent solution for freelancers

Self-employment in the UK – an excellent solution for freelancers
The simplest form of running a business in the UK is undoubtedly self-employment.

This type of business is characterised by, among other things, minimal formalities, ease of starting a business (including the option of registering a UK company online) and simplified accounting. So if you’re a new entrepreneur, don’t have much experience and, above all, want to minimise paperwork, self-employment could be a good solution for you.

This type of business is also chosen by people working in the B2B model – including programmers. In practice, however, self-employment is ideal for most freelancers, such as photographers, copywriters or graphic designers.

However, you should be aware that there are some additional requirements for this type of business. Firstly, setting up a self-employed business in England after Brexit will usually require you to obtain a visa allowing you to work in the UK (with some exceptions). You will also need to have a NIN (National Insurance Number) and provide HMRC with the relevant documentation.

The impact of the UK leaving the EU – how does it work in practice?

A company in the UK after Brexit will operate under slightly different rules than when the UK was still part of the European Union.

Brexit in the UK means new customs policies, new fees and new declaration requirements. As mentioned above, setting up a business in the UK will usually require a visa (although this will still depend on the type of business you choose). There are also changes to the rules on free movement between Poland and the UK – if you plan to travel frequently between the two countries, this could be a significant obstacle.

On the other hand, all the major advantages of doing business in the UK still apply. These include a relatively low level of red tape, a friendly approach and help from government officials, a favourable tax regime and a wide range of reliefs from which you can benefit.

Setting up a company in the UK is also low cost and there are many ways to optimise your tax position – for example, you can pay your salary in a more advantageous way to reduce your tax bill. In the UK, you don’t have to pay contributions until you exceed a certain amount. This means that, despite the many changes, the previous advantages remain very much in place.

How to move a company to the UK?

Maybe you’re not thinking of setting up a company in the UK, but of moving your business from Poland to the UK. Many entrepreneurs are considering this, especially after the implementation of the Polish Deal.

Moving a company to the UK can be financially beneficial, especially due to taxes and contributions. However, before making such a decision, make sure it is the right choice for you.

It sounds like a big challenge, but you don’t have to do it all on your own. On the contrary, if you don’t have legal or accounting qualifications, it can be difficult to assess the situation on your own. You’ll probably spend a lot of time searching for information, and you still won’t be sure you haven’t missed something.

In such a situation, it’s best to use the services of an accountant who can advise you on your options and the benefits of moving your business to the UK. Most importantly, an experienced accountant will help you move your business to the UK and take care of all the formalities.

Registering a company in the UK after Brexit – can you provide services from outside the UK?

It’s worth mentioning another option that many entrepreneurs aren’t even aware of. While you do need a visa to run a business in the UK and provide work there, who says you have to provide services in the UK?

You can set up a company in England as an LTD after Brexit and provide services outside the UK. You won’t need a visa and you won’t have to be resident in the UK. It is also possible to carry on both UK and international business – in which case additional requirements will need to be met. Special trade agreements apply between the UK and EU countries.

Setting up a company in England after Brexit – summary

Brexit has brought some changes to businesses in the UK, but one thing hasn’t changed – British companies are still respected and even associated with prestige in many countries. That’s why setting up a company in the UK can be beneficial not only financially, but also as a good solution if you plan to do business internationally.

FAQ – frequently asked questions and answers

What are the most common questions and answers regarding setting up a company in the UK after Brexit?

#1 What is a UK startup visa?

The Start-up Visa is for new businesses focused on a new product or service. It allows you to stay in the UK for up to 2 years, provided you meet additional requirements such as being over 18 years of age, having a certified level of English and having a certain amount of savings in your bank account.

#2 What is UK residency?

Before the UK left the EU, people who had lived in the UK for at least 5 years were entitled to British residency. They were then issued with a permanent residence card. However, those who want to live and work in the UK permanently and are not full UK citizens now need to obtain settled status.

#3 How to set up a company in the UK online?

If you are self-employed, you can set up a company online – by informing HMRC via an online form. This is also the case for some companies – again, no personal visit to the office is required. The form will be submitted to Companies House.

#4 Setting up a company in the UK – costs

The cost of starting a business in the UK varies depending on the type of company you choose. They can range from a few tens of pounds to thousands of pounds in the case of companies limited by guarantee, where a minimum deposit is required to open a company.