Launching a UK Business? More than 36,000 businesses in the UK are owned by international entrepreneurs, according to the Office for National Statistics, proving Britain remains a viable location to launch and run a new venture.

Yet with Britain's robust legal requirements and evolving immigration rules, it's essential for attention to be paid to the regulatory aspects of launching a business in the UK. Here, Barnes Law founder Yulia Barnes, and Vanessa Ganguin – founder of Vanessa Ganguin Immigration Law – share some expert insight for those looking to launch in the UK market.

An attractive destination
"The United Kingdom remains a highly attractive destination for international entrepreneurs," says Barnes – citing its stable and transparent legal framework, efficient corporate laws, and well-established protections for commercial contracts and intellectual property as key reasons for this.

"The UK's legal infrastructure supports fast and low-cost company formation, does not impose residency requirements on directors or shareholders, and enables full foreign ownership of companies, making it especially appealing for non-UK founders looking for ease of market entry," she adds, with several sectors drawing particular interest including technology and AI, life sciences and healthcare, creative and digital, and greentech and ESG-focused ventures.

Ganguin agrees that AI start-ups are thriving, alongside businesses focused on fintech, life sciences, aerospace and the green economy: "Britain continues to hold a strong appeal for international entrepreneurs. The UK offers a rich blend of heritage, innovation, strategic location and a regulatory environment that remains largely pro-business.

"London is one of the world's most influential financial centres. It boasts deep capital markets, a dense network of investment firms and a sophisticated banking infrastructure. Human capital is also a big draw: home to world-class universities, the UK churns out highly skilled graduates across many disciplines."

What effect has leaving the EU had?
Both agree that Brexit has been one of the crucial changes in recent years, impacting how international founders operate in the UK.

Barnes says: "While the UK initially retained much of the EU's legal framework, it has gradually introduced distinct standards – particularly in areas like data protection, consumer rights and digital commerce. For instance, the UK maintains its own version of GDPR, but this framework is slowly diverging from its EU counterpart, requiring businesses targeting both markets to tailor their compliance strategies accordingly."

Ganguin's expertise is immigration law, an area which has seen major changes since Brexit. All overseas entrepreneurs are now required to meet the same criteria to enter and remain in the UK regardless of whether they are an EU national or not. Global Talent visas now make UK relocation easier for individuals recognised in certain fields such as academia or digital technology and Global Business Mobility routes provide solutions for companies looking to operate in the UK market.

She says: "Brexit ended freedom of movement between the UK and EU, and Covid-19 catalysed a shift towards digital-first processes, remote working and resilient border policies. The Government used this disruption to overhaul its immigration system, aiming to create a 'Global Britain' that welcomes innovation and high-skilled entrepreneurship, albeit with tighter gatekeeping."

Common pitfalls
Ganguin warns, however, that proper research must be done to understand these visa routes – especially as some are only available once a company has begun trading in the UK.

And Barnes agrees that planning must be undertaken to avoid common pitfalls: "Many international founders underestimate the complexity of UK corporate and commercial law when entering the market, leading to avoidable legal missteps.

"Failing to put in place a tailored shareholder agreement or bespoke articles of association can lead to serious issues around equity, decision-making and founder exits. Another frequent error is failing to secure proper ownership of intellectual property, as well as founders sometimes overlooking their legal duties as company directors. Finally, many businesses misjudge the regulatory environment, particularly in sectors like fintech, healthcare or food, where operating without the correct licences or approvals can have serious legal consequences."

So, what key steps should overseas entrepreneurs prioritise?
Barnes continues: "First and foremost is the incorporation of a private limited company, with care taken to adopt suitable article of association and draft a shareholders' agreement. It is crucial to prepare robust commercial contracts, prioritise intellectual property protection, ensure regulatory compliance and address financial and tax obligations."

Ensuring immigrant founders and set-up teams are aware of which activities are permitted as a vistor and when to apply for work visas is crucial, adds Ganguin.

"They need to be aware of the limitations of what they can do in the UK as visitors before they obtain an appropriate work visa, as breaches can result in being banned from returning for a year or more. Beyond that, businesses will need access to talent and skills: if these aren't available locally, they will need to sponsor skilled workers from overseas or avail themselves of other immigration options to work in the UK. These include the Innovator Founder and Global Talent visas, as well as other options sometimes available such as family visas or ancestry-based citizenship."

Important advice
Bringing employees to the UK may require a sponsor licence or endorsement first, which is why Ganguin states the most important piece of advice for international entrepreneurs is to 'plan ahead'.

"Immigration advice should feature early in the process to avoid inadvertently losing access to visa routes or running into delays at critical junctures down the line. Current immigration developments have added extra hurdles, with sponsored routes soon to be restricted to exclude all but those with the highest skillsets in many sectors. So the UK's immigration rules should be a consideration at a very early stage of the process."

For Barnes, it's not just immigration regulations that should be on founders' minds early on, they should look to invest in tailored legal infrastructure as soon as possible: "The UK is an excellent jurisdiction for business growth, offering a flexible and transparent legal system – but it also places high expectations on businesses to comply with local laws and regulations.

"Too many founders adopt a 'minimum viable legal set-up' approach, which often results in complications during fundraising, contract negotiations or regulatory audits. By contrast, taking the time to properly structure a business not only reduces legal risks but also boosts credibility with all stakeholders."

A clear message from the legal experts: setting up a business in the UK is a very desirable option for entrepreneurs all over the world, but planning ahead is essential to avoid being tripped up by Britain's ever-changing immigration rules and legal hurdles.