How to Open a Company in the UK? What is the Minimum Investment Cost?
The fact that the UK currency is valuable and people want to earn income in foreign currency is one of the reasons why brands/people have recently increased their interest in the UK. Opening a company and selling products in the UK is not as difficult as you might think.
If you have a company in Turkey and you sell your products online, you can do this in the UK as well. First, you need to open a company in the UK. There is no investment cost/capital limit to open a company in the UK. By making an agreement with an accounting firm, you can open a company and sell your products in the UK at very affordable prices without any capital limit.
Opening a company is a fairly easy process. You can open your company by filling out a form on Homeoffice. However, choosing a business line can be difficult in some cases. Therefore, you will need an accounting firm. You need to work with the Accounting company both to choose a business line and to enter a business address within the UK.
The first thing you need to do is; open your company by contracting with an accounting firm. I recommend opening a limited company. After establishing your company, you need to make your virtual pos and cargo agreements. (I will explain topics such as virtual pos and cargo agreements in detail in my next article) Then you can start selling your products on your website or through marketplaces.
The advantage compared to other countries; If your annual turnover is under £85K, you do not pay VAT. In many countries, you are subject to VAT from the moment the company is established, but the UK has such a limitation to support start-ups.
According to your industry, you should research your target audience in the UK and enter the appropriate marketplaces. You can access very detailed information about your target market on the Internet and research your target audience.
Things to Know for E-Export to the UK
- Products such as fashion and sporting goods are the most popular product categories in e-commerce in the UK. This is followed by the travel and household goods categories. Other popular product categories are movies, music, books, and magazines.
- More than 70 percent of fashion spending in the UK is made online.
- According to Statista 2022 data, the most popular payment method in the UK is PayPal with 49%, followed by credit/debit cards with 37%. For this reason, it is very important to establish a company in the UK because; To use PayPal, you must have a company in the UK.
- Shipping costs in the UK vary according to the weight of your product and the courier company you will agree with. DPD, Royal Mail, and Hermes (Newly Evri) are the most used cargo companies.
- Customs duty exemption is available for e-export to the UK.
If you want to get more information about opening to the UK market, Fulfilment, Customs, etc., you can contact us.
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See you in my next post!