Setting up a business in the UK
Setting up a business in the UK is still fairly straightforward, provided you have an address in the UK. You can set up a Limited Company (Ltd) or a Limited Liability Partnership (LLP).
It is mandatory to register your company if you have a physical presence in the UK; there is no need to register if you are only importing or exporting.
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If you are setting up a business you will need to choose a legal entity. You can either choose a limited company (Ltd) or a limited liability partnership (LLP). The limited company is the form most often used by foreign entrepreneurs establishing a business in the UK. It is comparable to the Dutch besloten vennootschap (BV). A limited company has one or more owners/shareholders, whose liability is limited to the amount of capital they invested. Here you can find more information to set up a Ltd.
It is also possible to set up a Limited Liability Partnership (LLP). With this legal form the business is run by two or more partners. Another company can also be admitted as a corporate partner. Each partner pays tax over their share of the partnership’s profits but is not personally liable for the partnership’s debts. More information can be found here.
You also can work as a Sole Trader in the UK. This means that you are self-employed. How to set up as a Sole Trader can be found here. You have to register at the British Tax (HRMC) for your tax on income with a Self-Assesment Tax return. For now you cannot do this online. You have to use the right form. HRMC forms can be found here.
You have to register for VAT at HRMC if your VAT taxable turnover is more than £85.000,- a year. More information can be found here.
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How do I open a business bank account in the UK?
You probably need to open a UK business bank account if you want to do business in the UK. It will certainly make doing business in the UK easier. Each bank or FinTech/online possibility has its own procedures.
The UK government’s website provides more information on opening a business bank account.
The UK’s leading FinTechs have made accessing UK business banking services easier for international entrepreneurs and businesses, whatever their size.
There are a growing range of these business accounts available, and the preferred options will come down to your specific business needs.
If you want to use the traditional banks, no matter where you intend to locate your business, you should contact your selected bank’s central inward investment team, usually located in London. The bank will also need to meet at least one representative of your company face-to-face in the UK to sign a bank mandate to open the business bank account.
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A Ltd must be registered with Companies House, the UK’s equivalent to the Dutch Handelsregister, and with HMRC, the UK tax and customs authority.
An LLP must also be registered with Companies House and with HMRC for self-assessment of tax.
Ones registered at Companies House, you must notify them whenever any significant changes occur in regard to your company/partnership.
Network and contacts
There are several websites that provide information on public tenders and contracts in the UK. The major ones are listed below:
Official Websites
- The main website for tenders and contracts worth over £10,000 with the government and its agencies
- Includes current, future and previous tenders and contracts details in different sectors
- For high value contracts (usually above £118,000), please use the Find a Tender service
- Tender opportunities in digital services
NHS Supply Chain Procurement Portal
- The UK National Health Service (NHS) tender portal
Local Authority Tendering Portals by Region
Information found via NI Business Info :
- South West of England - Supplying the South West
- South East of England - South East Business Portal
- Yorkshire and Humber region of England - YOR tender portal
- North West of England, including Manchester, Liverpool and Leeds - Chest
- North East of England - North East Procurement Organisation portal (NEPO)
- East Midlands of England - East Mids Tenders
- London Borough - London Tenders Procurement Portal
Commercial Websites
- A major UK website with details of public sector tenders
- Collated from multiple sources, such as Contracts Finder, NHS Supply Chain, The Chest etc
UK Law
Under current VAT policy, an EU company engaged in distance-selling to the UK only needs to register for UK VAT if the value of its sales to the UK exceeds £70,000 per year. Distance-selling means:
- You are not established in the UK but in another EU country.
- You sell goods to customers who are not VAT-registered (such as consumers and businesses with a small turnover).
- You supply the goods yourself or arrange the supply of the goods.
Unless the UK and the EU make new arrangements, the distance-selling arrangement will no longer apply for EU companies after Brexit. They will instead become overseas sellers. Overseas sellers must always register for UK VAT.
The Dutch government has set up a Brexit desk to answer your questions about doing business in the UK after Brexit.
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If you are planning to export to the UK, you may need documentation to show that you satisfy certain laws and regulations.
You often need different documents for exporting to countries within the EU or to countries outside the EU. The Dutch Chamber of Commerce (KvK) can tell you more about export document requirements.
In the UK, HMRC is responsible for taxation and customs matters.
You can use the Brexit Impact Scan to check how you can prepare for changes in customs procedures as a result of Brexit.
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Consignments of goods with a value of £135 or less that are outside the UK and sold directly to customers (not through an online marketplace) in Great Britain (England, Scotland and Wales) will have UK supply VAT charged at the point of sale.
The £135 limit applies to the value of a total consignment that is imported, not the separate value of individual items that are in a consignment.
The seller must charge and account for VAT at the point of sale, unless the consignment is a business to business sale and the customer has given them their UK VAT registration number.
More Information
To charge and account for VAT the seller will need to:
- know the precise nature of the goods to find out the correct rate of VAT to charge
- register for VAT – sellers that are already registered for VAT do not need to re-register
- keep records of the goods sold, and make sure they get accurate information to apply the correct VAT treatment to them.
Normal VAT and customs rules will apply on importation of the goods into Great Britain from outside the UK or into Northern Ireland from outside the UK and EU if the value is more than £135.
More information can be found here.
Should you charge a British client VAT over services rendered? It depends on whether your client is a private individual or a business. Generally speaking, the following rules apply: if your client is a private individual, you charge Dutch VAT. If your client is a company, you don’t usually charge VAT. The client is responsible for calculating and paying British VAT.
There are some exceptions to this rule. In some cases, the British Tax Office will decide that you can reverse-charge VAT to your client, or you have to charge British VAT. In the latter case, you will need a British VAT registration. To make certain if you should charge VAT, and what type of VAT to charge, use the Dutch Tax Administration Services Abroad calculation aid.
Since the UK has left the EU, rules and procedures for product safety legislation have changed. The National regulator for all consumer products (except for vehicles, food and medicine) is the Office for Product Safety and Standards (OPSS). Products intended for the UK market must comply with the requirements of all applicable UK legislation. The OPSS provides guidance on regulations per product type.
UKCA marking
The UK government has introduced the UKCA marking which replaces the EU’s CE marking for certain goods. It confirms that marked products meet certain health, safety and environmental regulations and standards. The UKCA marking came into effect on 1 January 2021 but businesses are able to use the CE marking until 1 January 2023 in most cases, to allow time for adjustments. Manufacturers will need to affix the new UKCA marking by the product and carry out third party conformity assessment by a UK body, if required by legislation. Find out what this means for your business here. UKCA marking alone cannot be used for goods placed on the market in Northern Ireland, read what you need to do here.
The Netherlands Enterprise Agency (RVO) provides more information (in Dutch) on product standards that apply in the UK.
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Working in the UK
The UK has left the European Union since 1 January 2021. Since that date the UK’s points-based immigration system applies. Under this system EU, EEA and Swiss citizens and other non-visa nationals do not require a visa to enter the UK when visiting the UK for up to 6 months.
Do I need a visum to work in the UK?
Under the points-based immigration system, anyone coming to the UK for work needs a visa. They must meet a specific set of requirements for which they will score points. Visas are then awarded to those who gain enough points.
There are however general business activities that are permitted under the visitor immigration rules. The full list of permitted activities is available here. Permitted activities include attending meetings/conferences, negotiate and sign deals and contracts or be briefed on the requirements of a UK based customer.
The following Intra-corporate activities are also permitted: An employee of an overseas based company may: (a) advise and consult; (b) trouble-shoot; (c) provide training; (d) share skills and knowledge; on a specific internal project with UK employees of the same corporate group, provided no work is carried out directly with clients.
An employee of an overseas company may install, dismantle, repair, service or advise on machinery, equipment, computer software or hardware (or train UK based workers to provide these services) where there is a contract of purchase, supply or lease with a UK company or organisation and either:
(a) the overseas company is the manufacturer or supplier; or
(b) the overseas company is part of a contractual arrangement for after sales services agreed at the time of the sale or lease, including in a warranty or other service contract incidental to the sale or lease.
More information
All the current visa possibilities you can find here. It is important to apply for the right visa through the relevant route.
Freedom of movement between the UK and EU has ended and the UK has introduced a points-based immigration system. You need to have a sponsor licence to hire most workers from outside the UK.
For more information, view guidance on recruiting people from outside the UK.
Data Protection and GDPR What are the UK’s rules on data protection?
On 28 June 2021 the EU Commission adopted decisions on the UK’s adequacy under the EU’s General Data Protection Regulation (EU GDPR) and Law Enforcement Directive (LED). In both cases, the European Commission has found the UK to be adequate. This means that most data can continue to flow from the EU and the EEA without the need for additional safeguards or changes. More information you can find here.
Yes, the GDPR is retained in domestic law as the UK GDPR, but the UK has the independence to keep the framework under review. More information about the UK GDPR can be found on the website from the Information Commissioner’s Office (ICO).