How to Start a Foreign Business in the UK
Starting businesses in foreign markets is increasingly popular these days, but is no new concept. The country that you can start a business in is limited only to how far you are willing to travel to establish and maintain your venture. A resident of the United Kingdom (U.K.), starting a business abroad, must weigh many options. Creation of an International Bbusiness Company (IBC) is undertaken solely in the country that you wish to incorporate within,so it will be governed by the country that you are starting the company in. However, you'll need a passport from the UK to travel to the country in which you wish to establish your business.
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Instructions
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Draft a strong business plan. Regardless of the country you choose to establish your company in, you will need to design a solid business plan, showing the full scope of your business and how it will operate. The key elements in a business plan are the executive summary, company description, product/service, market analysis, organization/management, marketing plan and financial plan. Write at least a couple of paragraphs on each topic and include explicit details about how your business will function. If you are looking to import items into the U.K. from the country of origin in your business, include the details of that trade relationship. There are a wealth of sample business plans on the Internet that can be reviewed.
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Register your business. The specifications that are used in the registration procedure for new businesses vary from county to county. The foreign country you wish to incorporate in will no doubt have different regulations for establishment than in the U.K. The World Bank Group has a website called "Doing Business" that contains the procedural information required for establishing a company in nearly every country in the world (see Resources).
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Meet licensing requirements. The licensing requirements in foreign countries are as varying as business registration requirements. The government in the state, province or municipality should be contacted for information on licensing requirements for the particular industry and location you have chosen.
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Complete tax registration. Taxation is handled differently abroad than in the U.K. However, most countries require businesses to register for taxes. The taxation or revenue agency in the province, state or municipality will instruct you on the registration procedures and regulations for your area and industry.
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Register as an employer. Many countries have codes and regulations regarding the employment of laborers. As an employer, you may need to register your business and its employees with the government. Contact the agency that handles labor affairs for information about registration forms and procedures.
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Tips & Warnings
It is important to become familiar with the history, customs, culture, people and business environment of a foreign country before conducting business there. Good business etiquette is key in foreign markets.
Some countries require at least one director of a company to be a resident of that country. Make sure to identify if your chosen country is such a country before proceeding.
References
Resources
- Photo Credit Group of business people working together in the office. image by Andrey Kiselev from Fotolia.com
