How to Successfully Launch a Business in the UK as an Immigrant

You can start a business in the UK as an immigrant, but your visa decides how. Some routes, such as the Graduate visa and the Innovator Founder visa, let you run your own business. Others, such as the Skilled Worker visa, are built around a job with a sponsoring employer, and running a business on the side may breach your conditions. Check that first. Then choose between being a sole trader and forming a limited company, register with HMRC or Companies House, and verify your identity, which every new company director has had to do since November 2025.

This guide covers each step as the rules stand in November 2026, with links to the GOV.UK pages you should check before acting. It is general information, not legal or tax advice. Immigration rules in particular change often, so confirm your own position with a regulated immigration adviser before you commit money.

Step 1: Check what your visa allows

Every UK visa page on GOV.UK has a section on what you can and cannot do. Read yours before you register anything.

Visa	Can you run your own business?	Notes
Graduate visa	Yes, you can be self-employed	2 years if you apply on or before 31 December 2026, 18 months if you apply from 1 January 2027 (3 years for PhD graduates). It cannot be extended.
Innovator Founder visa	Yes, that is its purpose	The business must be new, innovative, viable and scalable, and endorsed by an approved endorsing body.
Skilled Worker visa	Check carefully, often not	The visa is tied to an eligible job with your sponsor. GOV.UK says additional work is allowed only in certain circumstances, so check the rules before doing anything on the side.
Settled status, ILR or British citizenship	Yes	No visa restrictions on self-employment.

Partners and dependants are on different conditions again, so check the specific route.

The Innovator Founder route in brief

For founders coming to the UK to build a business, the Innovator Founder visa is the main route. According to GOV.UK:

• You need an endorsement from an approved endorsing body, which costs £1,000, plus £500 for each check-in meeting.
• The initial stay is 3 years, and you must meet your endorsing body after 12 and 24 months.
• You can work for your own business, and also take other jobs that require at least a level 3 qualification.
• The business must be new. You cannot join a business that is already trading.

The endorsement process is demanding. Expect to show a real business plan, evidence of market demand and your own ability to deliver it.

Settlement rules are changing

If your plan depends on getting indefinite leave to remain, be careful with older timelines. The Home Office published its response to the earned settlement consultation on 2 November 2026. According to a summary by law firm Withers, the standard qualifying period is rising to 10 years, with shorter routes for some high earners and talent routes, and rule changes are expected to be laid from December 2026 with phased implementation in 2027. Details may still change, so take advice on how it affects your route.

Step 2: Choose your business structure

Most new businesses start as one of two things.

Sole trader. You and the business are legally the same. It is simple and cheap to set up. According to GOV.UK, you must register for Self Assessment once you earn more than £1,000 from self-employment in a tax year. You are personally responsible for any business debts.

Limited company. The company is a separate legal entity, which protects your personal assets in most cases and can look more established to larger clients and investors. It means more admin: annual accounts, a confirmation statement and Corporation Tax.

Many founders start as a sole trader to test demand and incorporate once the business has steady revenue. Speak to an accountant about which suits your income and plans.

Step 3: Register the business

Registering a limited company

You register with Companies House online. It costs £100 and is usually done within 24 hours.

Identity verification is now part of the process. Since 18 November 2025, new directors must verify their identity before they can incorporate a company or be appointed to one. People with significant control must verify too. You can do it free through GOV.UK One Login, online or through the app, or through an Authorised Corporate Service Provider such as an accountant or formation agent. Once verified, you get a personal code to use for every company role you hold.

If your identity documents are from outside the UK, allow extra time and have your passport and eVisa details ready.

Registering as a sole trader

Register for Self Assessment with HMRC. If you started trading in the 2025 to 2026 tax year and have not sent a return before, GOV.UK says you must tell HMRC by 5 October 2026 or risk a penalty. The same date pattern applies each year: 5 October after the end of the tax year you started.

Step 4: Understand your tax duties

A good accountant who understands both UK rules and any overseas income you have is worth the fee. The basics:

• Corporation Tax for limited companies. GOV.UK lists a 19% small profits rate for profits of £50,000 or less, 25% for profits over £250,000, and marginal relief in between.
• Income Tax and National Insurance for sole traders, worked out from your profits through Self Assessment.
• Making Tax Digital for Income Tax. Sole traders with qualifying income over £50,000 have had to use it from 6 April 2026, and the threshold falls to £30,000 from April 2027 and £20,000 from April 2028. It means keeping digital records and sending updates to HMRC through compatible software.
• VAT. You must register once your taxable turnover over the last 12 months goes above £90,000, or if you expect to pass it in the next 30 days. You can register voluntarily below that.
• PAYE. If you hire staff, or pay yourself as the director of your own company, you must register as an employer before your first payday.

Keep records from day one. Mixing personal and business money is the most common way new founders lose track of tax.

Step 5: Sort out banking and credit

New arrivals often have a thin UK credit file, which makes business bank accounts, card terminals and loans harder to get. Practical steps:

• Open a business account with a digital bank first. They tend to have lighter onboarding for new companies.
• Get on the electoral register if you are eligible, and keep your address history consistent.
• Use a business credit card or supplier accounts sensibly to build a track record.

Step 6: Fund the start

• Start Up Loans. The government-backed Start Up Loans scheme offers personal loans for business purposes of up to £25,000 at a fixed 7.5% a year, repaid over 1 to 5 years, with 12 months of free mentoring. Check its eligibility rules for your residency status.
• Bootstrapping. Many service businesses can start with savings and early customer revenue. We look at the trade-offs in bootstrapping vs fundraising.
• Angel and venture investment. The UK has an active investor scene, but only for businesses that can grow fast. Be realistic about whether yours is one.

Step 7: Understand the market before you spend

Your background can be an edge. You may understand a community, a supplier network or a product that UK competitors do not. But that insight only becomes a business if people pay.

• Test small: a market stall, a pop-up, a short run of products, a few paying clients.
• Talk to customers before building. We wrote about this in stop guessing, talk to your users.
• Do not assume one city represents the country. London, Manchester, Glasgow and Belfast differ in prices, habits and competition.

Step 8: Build a network

Local networks open doors to customers, suppliers and advice:

• The Federation of Small Businesses and your local chamber of commerce.
• Diaspora business associations from your home country.
• Your local council’s business support or Growth Hub (in England).
• Sector meet-ups, trade shows and online founder communities.

Step 9: Get found by customers

Most UK customers search before they buy, even for local services. Before spending on ads, make sure people can find you:

• A Google Business Profile with accurate details, photos and reviews.
• A simple website with one clear page per service.
• Listings on the directories your customers use.

Our guides to SEO for a UK beauty salon and SEO for UK carpenters show what this looks like for local service businesses. If you are building the business alongside a job, read thriving as a retail business owner while working a 9-to-5.

Step 10: Hire with care

When you hire, you must check each new employee’s right to work in the UK before they start, register for PAYE, and provide a workplace pension for eligible staff. People with local market knowledge can save you costly mistakes, and a mix of local and international experience can be a strength. Hiring the wrong person early is expensive, as we explain in hiring the wrong talent.

Frequently asked questions

Can I start a business in the UK on a Skilled Worker visa?

Usually not as your main activity. The visa is tied to your sponsored job, and additional work is allowed only in certain circumstances. Check the GOV.UK rules for your visa and take advice from a regulated immigration adviser before trading.

Do I need to verify my identity to register a UK company?

Yes. Since 18 November 2025, new directors must verify their identity with Companies House, through GOV.UK One Login or an Authorised Corporate Service Provider, before they can incorporate or be appointed.

How much does it cost to register a company in the UK?

Registering online with Companies House costs £100. Identity verification through GOV.UK One Login is free, though agents who verify for you may charge.

Do I need to register for VAT straight away?

Only if your taxable turnover goes above £90,000 in a rolling 12 months, or you expect it to within 30 days. Some businesses register voluntarily to reclaim VAT on costs.

Starting is the hard part. Once you are trading, being easy to find online is what brings the next customer, and a free SEO audit is a simple way to see where your website stands.

Sources

• GOV.UK: Graduate visa
• GOV.UK: Innovator Founder visa
• GOV.UK: Skilled Worker visa
• Withers: Major changes to UK indefinite leave to remain confirmed (November 2026)
• GOV.UK: Set up as a sole trader
• GOV.UK: Register for Self Assessment
• GOV.UK: Register your company
• GOV.UK: Companies House confirms identity verification rollout from 18 November 2025
• GOV.UK: Corporation Tax rates and reliefs
• GOV.UK: Check if you’re eligible for Making Tax Digital for Income Tax
• GOV.UK: How VAT registration works
• GOV.UK: Register as an employer
• GOV.UK: Check a job applicant’s right to work
• Start Up Loans