How to open a business in Great Britain after Brexit

As lawyers at Prikhodko & Partners Law Firm, we often receive questions about opening a business in Great Britain after Brexit.

Opening a business in this country has become a challenge for many entrepreneurs, especially for those who are used to working in the conditions of the single European market.

Great Britain has updated its rules, and now, in order to start a business, you need to take into account new realities and prepare for possible difficulties.

In this article, we will share our own professional experience and talk about how you can open a business in the UK, taking into account the changes after Brexit.

How have business conditions changed after Brexit?

Before leaving the EU, Great Britain was part of the single European market, which greatly simplified doing business, especially for entrepreneurs from EU countries.

After Brexit, the country left the customs union and the single market, which led to the complication of import and export procedures. New visa requirements have also been introduced for EU citizens planning to live and work in the UK

The main change that affected entrepreneurs concerns new customs procedures, tariffs and regulatory restrictions. For example, to import goods from EU countries, it is now necessary to submit declarations and pay customs duties.

If you plan to sell goods domestically, you need to register as a VAT payer if your annual turnover exceeds £85,000.

Steps to start a business in the UK

1. Choose a form of business. There are different forms of business in the UK, such as Sole Trader, Limited Company or Partnership. Each of them has its pros and cons. The most popular form for small entrepreneurs is the Sole Trader, as it allows you to start a business without complicated procedures.
2. Business registration. Business registration depends on the form you choose. A Sole Trader must register with HM Revenue & Customs (HMRC). To register a Limited Company, you need to create a company at Companies House. The registration process is quite quick and can be done online.
3. Opening a bank account. You will need a separate business bank account for financial transactions. However, many banks require proof of address in the UK, which can be a challenge for new entrepreneurs. On the other hand, digital banks have appeared that greatly simplify the process of opening accounts for new businesses.
4. Obtaining licenses and permits. Some types of business require special licenses or permits. For example, if you plan to sell alcohol or food, you will need the appropriate licenses from local authorities. This also applies to certain types of services.
5. Accounting and tax obligations. Running a business requires correct accounting. You can do this yourself, but it is often more profitable to use the services of a professional accountant to avoid mistakes. It is necessary to remember the obligation to pay corporation tax (Corporation Tax) and submit reports to HMRC.

Challenges for business after Brexit

The main challenge for entrepreneurs after Brexit has become the complication of conditions for access to the EU market. If earlier the export of goods to EU countries was easier, now customs procedures and additional fees create significant obstacles. Many entrepreneurs recognize that these new requirements are becoming a barrier to business growth.

On the other hand, Brexit also brought new opportunities. For example, the UK government actively supports job-creating businesses, particularly in the technology and green energy sectors. New financing programs for startups have also appeared, which can be a significant support for new entrepreneurs.

Conclusion

Our team can help you understand the legal nuances, ensure your business is properly registered, and support you throughout the process.

Great Britain, despite all the challenges, offers favorable conditions for doing business, and with proper preparation you will be able to take advantage of the British market.

Legal support can significantly reduce risks and ensure the success of your enterprise