A lot of migrants don’t realise how easy it actually is to start a business in the UK. Many people believe they have to wait until they become British citizens or at least get permanent residency, but that’s not true at all. You can start a business long before that, as long as your current visa permits you to do so. That’s really the very first thing to understand: different visas have different rules.
Some, like the Global Talent Visa, give you complete freedom to run a business, freelance, or partner with others. Others, like the Skilled Worker Visa, tie you to your employer and restrict you from doing anything related to the job you’re being sponsored for, even though they sometimes allow unrelated side hustles. Student visas, dependent visas, and other categories also come with their own conditions, so it’s always better to double-check your specific rules on the official government website before you start planning your business journey. Knowing this saves you from unintentional immigration breaches later.
Once you’re clear that your visa allows it, the next thing to think about is the structure of your business. This is more important than people realise because it sets the tone for how you’ll operate, how you’ll pay tax, and even how clients will perceive you. Most migrants start as sole traders because it’s the simplest option. You can set it up in a few minutes, it’s free, and it’s ideal for anyone running a one-person hustle like baking, hair styling, babysitting, cleaning, photography, social media management, and many other skill-based services. It gives you flexibility while keeping your responsibilities light.
On the other hand, if you’re planning to grow something more serious, work with bigger clients, or create a brand that looks professional from the start, forming a limited company might be the smarter option. Limited companies have more structure and may look more credible to clients and partners. Some people also start a business with a friend, and in that case, a partnership structure might make sense, especially if you’re just testing the waters before fully committing. Whatever you choose, make sure it’s something that matches the scale and vision of your business.
The actual registration process in the UK is surprisingly easy compared to many other countries. If you decide to register as a sole trader, your main task is to register on the government website so that HMRC knows you are self-employed. You’ll get your Unique Taxpayer Reference (UTR), and once you have that, your responsibility is simply to file your taxes at the end of each tax year. If you choose to register a limited company, you’ll do that through Companies House, and the whole thing usually takes no more than 24 hours. It costs £12, and all you need is a business name, an address, and a short explanation of what the business does. It’s really not complicated at all once you know where to go and what to submit.
After registering, the next thing to take seriously is opening a proper business bank account. Keeping your business money separate from your personal funds makes life a lot easier, especially during tax season. To open one, you’ll generally need your passport or BRP, proof of your address, and your registration documents.
Some traditional banks may stress new migrants or ask for more documentation, so many people prefer digital banks like Starling, Tide, or Revolut Business. They’re faster, more flexible, and more welcoming to newcomers.
Now, let’s talk about taxes, because this is where many new business owners get confused or overwhelmed. Every business in the UK, no matter how small, must pay tax. If you’re a sole trader, you’ll pay income tax based on your profits along with National Insurance contributions. If you run a limited company, the company itself pays corporation tax, and you pay your own tax separately, depending on whether you take a salary or dividends.
Another thing to be aware of is VAT. Once your business starts earning £90,000 or more in a year, the law requires you to register for VAT. It sounds intimidating, but it’s simply another registration you do online. The important thing is to keep every invoice, every receipt, and every business expense neatly recorded. HMRC can ask to see your bookkeeping at any time, and having everything organised saves a lot of stress.
Depending on the kind of business you’re running, you might also need specific licences or local council permissions. Food businesses, beauty-related services, childminding, and even some home-based businesses must register before they operate. This is why checking your local council’s website is crucial, especially if customers will be visiting your home or you’ll be using equipment that requires safety standards. Requirements differ from one area to another, so it’s better to confirm early.
Once you’ve set everything up, it’s also important to think about your brand and future growth. If you have a unique business name or a logo you want to protect, registering it as a trademark is a smart move. It helps you safeguard your identity as your brand grows. Beyond that, having a professional email, building an online presence, and being aware of funding opportunities can make a huge difference.
There are organisations in the UK like the Prince’s Trust and Start Up Loans UK that support small and migrant-owned businesses with grants, training, and low-interest loans. Many people don’t know these opportunities exist, but they can help you scale faster.
At the end of the day, starting a business in the UK as a migrant is not complicated at all. It’s just a matter of knowing your visa conditions, choosing the right structure, registering properly, keeping your taxes clean, and staying organised.
You don’t have to wait until you become a British citizen to build something meaningful. You can start small, grow steadily, and create something that works for you legally and confidently.
