Changes in the UK Business Rules: What You Need to Know
What is changing in the rules for conducting business operations
in the United Kingdom?
in the United Kingdom?
The British Companies House is implementing extensive changes aimed at improving the registration and reporting processes of companies in the United Kingdom. These changes will affect directors and founders of companies, including those arriving from
foreign countries.
foreign countries.
Changes in corporate legislation
Britain is implementing significant changes in corporate legislation through the Economic Crime and Corporate Transparency Act.
These changes include:
Key immigration changes
In spring 2024, significant changes occurred in immigration rules that are important for foreign entrepreneurs interested in business immigration to the UK:
What visas can be used to relocate and start a business in the UK in 2024?
For those intending to relocate to the UK and develop their business, the primary choice remains the Innovator Founder visa. It's important to note that the approach of UK administrative bodies to reviewing applications is becoming stricter, and it is recommended to provide evidence of investment funds availability and thoroughly develop the business idea in accordance with immigration requirements.
An alternative route for entrepreneurs is the Global Talent visa. It's crucial to highlight that this visa is suitable only for those whose business is based on their own IT product, not on outsourcing.
To persuade the authorities of the business's innovation, entrepreneurs should study the guidance from the UK Home Office for institutions responsible for approving business ideas. They need to demonstrate a genuine and original business plan that meets new or existing market needs and creates competitive advantages.
When assessing compliance with innovation requirements, applicants are expected to consider the following principles:
Despite changes in immigration legislation and the complexities involved, the UK remains open to talented entrepreneurs from with innovative ideas.
Britain is implementing significant changes in corporate legislation through the Economic Crime and Corporate Transparency Act.
These changes include:
- Increase in fees for business registration and maintenance from May 1, 2024. The registration cost will now start at £50, up from the previous £12.
- Introduction of additional verification checks for information provided by company founders to the Companies House. This pertains to the personal details of founders and the address of company directors.
- Expansion of Companies House authority to request and challenge data that may be inaccurate or inconsistent with existing records.
- Implementation of a new identity verification process for founders and directors through the Companies House or an Authorized Corporate Service Provider (ACSP).
- Prohibition of using P.O. Boxes as company registration addresses, requiring documents proving a valid registered address.
- Changes in the Confirmation Statement filing process, including the requirement to provide an email address for communication with the Companies House and confirmation of the company's lawful purposes.
- These changes also impact accounting reporting processes and the registration of limited partnerships. All are aimed at enhancing transparency and accountability in the UK business environment.
Key immigration changes
In spring 2024, significant changes occurred in immigration rules that are important for foreign entrepreneurs interested in business immigration to the UK:
- Increase in the minimum annual salary requirement for obtaining a Skilled Worker visa from £26,000 to £38,000. Individuals already in the UK on a Skilled Worker visa before the new laws were introduced are not subject to the new requirements when changing jobs, extending their visa, or changing immigration status.
- Health and Care Worker Visa holders and certain education sector workers are exempt from the new minimum salary conditions applied to other skilled workers.
- Changes in visa conditions for healthcare and social care workers aimed at improving the visa route for medical specialists and other professionals in this field.
- Prohibition on bringing family members for workers engaged in caregiving for the sick and elderly upon receiving a visa. However, those residing in the UK on a Health and Care Worker visa can retain the right to live with their families, change employers, and apply for permanent residency.
- Abolition of the process for renewing Sponsor Licences. Employers no longer need to apply to extend their licences, as their validity will automatically be extended to 10 years for all licences expiring after 6 April 2024.
- These changes apply to all existing Sponsor Licences, requiring no additional action from employers.
What visas can be used to relocate and start a business in the UK in 2024?
For those intending to relocate to the UK and develop their business, the primary choice remains the Innovator Founder visa. It's important to note that the approach of UK administrative bodies to reviewing applications is becoming stricter, and it is recommended to provide evidence of investment funds availability and thoroughly develop the business idea in accordance with immigration requirements.
An alternative route for entrepreneurs is the Global Talent visa. It's crucial to highlight that this visa is suitable only for those whose business is based on their own IT product, not on outsourcing.
To persuade the authorities of the business's innovation, entrepreneurs should study the guidance from the UK Home Office for institutions responsible for approving business ideas. They need to demonstrate a genuine and original business plan that meets new or existing market needs and creates competitive advantages.
When assessing compliance with innovation requirements, applicants are expected to consider the following principles:
- The business proposal must clearly and convincingly demonstrate unique advantages in the market.
- The innovation concept should show that the business proposal cannot be easily replicated and has reasonable barriers to market entry.
- Innovative elements must be key to the business's success and developed within the business itself.
Despite changes in immigration legislation and the complexities involved, the UK remains open to talented entrepreneurs from with innovative ideas.
How to move to the United Kingdom?
If you are interested in relocation opportunities and launching a business in the UK, sign up for a free consultation to receive additional information!