Answering questions about opening a new company in The UK

Updated time: 21 Jun, 2021, 20:56 (UTC+08:00)

Through a series of articles providing information on investment and business opportunities in the UK, One IBC has received many questions from many interested Vietnamese businesses.

As a corporation specializing in providing consulting services and supporting foreign business operations, One IBC can assist your business in setting up a company in the UK and many other countries around the world. And to answer the questions sent by readers in the past few days, Mr. Bui Duc Tue, representative director of One IBC Vietnam is here to answer your questions.

Q: I would like to ask about the minimum requirements for foreigners to set up a company in the UK. Also can I name my business in the UK?

(Nguyen Duy Toan - HCMC)

To answer your question, you first need to know that for a foreign business setting up a company in the UK, it will be registered under two main types: Limited Liability Company (LTD) and Partnership limited liability (LLP). The minimum requirement to form a Limited Company is at least one shareholder and one director, which can be the same person. For a limited liability partnership, at least 2 members are required.

When you set up with One IBC, you will be supported to provide an office address and secretarial services, and receive the company immediately within 2 working days. Registration with One IBC is also much simpler. You only need to provide the following 3 documents:

Passport of each shareholder/owner and director
Proof of residential address of each director and shareholder (Must be in English or a certified translation)
The up-to-date business plan

In addition, the UK does not stipulate the nationality of directors or shareholders. So in your case, you can fully own 100% of the company.

The UK always welcomes investors around the world

Q: I am planning to expand my business to export my products to the European market. So what advantages does the UK have over other European countries?

(Nguyen Ngoc Bao - Thanh Hoa)

Many international investors target the UK market to export to the European market because of the simplicity of setting up a new business. In particular, a limited company will bring you many significant benefits that you should consider, namely:

Favorable policies for foreign investment

The UK-Vietnam Free Trade Agreement (UKVFTA) enhances the benefits in the existing trade relationship between the two sides. Vietnamese enterprises when exporting to the European market in general and the UK in particular will enjoy a commitment to cut tariffs on many types of products. Plus, your UK company enjoys favorable corporate tax benefits as a foreign investor.

Get legal protection

When setting up a company in the UK, your business name is copyrighted and protected by UK law. Other competitors cannot trade under your registered business name or use a similar name in the same business. Therefore, you do not need to worry about your customers being confused or being manipulated by your competitors.

Build a professional image and open up many business opportunities

With a company with an address in the UK, your business will create a more professional and reputable image. This will help you build customer trust in your products or services and also give you more opportunities for cooperation, which in turn also makes fundraising easier, and you also will have the opportunity to access larger investment funds.

Here are some typical benefits of setting up a company in the UK. You can consult and come to One IBC to get more specific advice from a team of experts.

One IBC's experts will support your business as it expands into the UK and international markets.

Q: What should I keep in mind when doing business in the UK for the first time?

(Nguyen Tan Thanh Minh - Hanoi)

When starting a business in the UK, you should be familiar with UK government policies and regulations to avoid unwanted violations. Here are a few things to keep in mind:

Prepare a clear and detailed business plan. In the case of working with an international bank for a loan, a complete and reasonable business plan will help you get approved more easily. Your plan should give a big picture of how the business will start and grow. It should describe the business, product or service, market, mode of operation, capital requirements, and expected financial results.
Businesses must comply with UK government anti-money laundering laws.
Find out the government regulations when exporting to the European market in general and the UK in particular. This not only helps businesses avoid legal troubles, but also benefits from preferential tariff policies.
Businesses need to submit Annual Reports and Financial Statements to the Companies House (Companies House): All documents must be available and written in English; The reports must follow the prescribed forms.

Company Administration (Companies House) in Cardiff, UK

To avoid the hassle of complicated financial statements that are required to be filed in the UK, you can use One IBC's services. One IBC's team is professional and experienced in advising and assisting clients in establishing companies in many countries around the world.