Local residents or foreign citizens can open a company in Manchester following the standard registration procedure. The steps for company formation in Manchester are the same regardless of the nationality of the person wishing to start a business in this city, but there can appear specific legal requirements prior to starting this procedure.
The two categories of entities will have to follow slightly different rules. Such rules do not refer to the process of company formation in Manchester, as this is the same for all applicants, but to immigration rules.
Foreigners who want to come to the United Kingdom (UK) for business purposes have to meet various immigration conditions that can be presented at length by our Manchester solicitors.
For instance, for certain categories of foreigners, a business visa will be necessary, which will grant the right to obtaining a residence permit. Through this, the foreigner is entitled to live here and start the steps for starting a business in Manchester.
If you need legal advice and you want to conclude this procedure with the assistance of professionals, you can rest assured that our Manchester solicitors can help you.
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What is the process for company formation in Manchester?
The steps for opening a company in Manchester are comprised of numerous procedures; if you are new in the industry and you plan to set up your first company, it is highly recommended to receive legal representation from our lawyer in Manchester.
Even though the registration process is not necessarily very complicated, it does involve the preparation of a large number of documents, forms, etc., and this can become an overwhelming process.
One of the first things that investors should decide upon when starting the process for company formation in Manchester is the legal entity of the company – here, investors can choose from sole traders, limited liability companies (public or private) or partnerships.
All these entities have certain characteristics and numerous differences between them, and if you are not sure which is the most suited for your business plans, you can request information from our Manchester law firms.
However, most of the businessmen, both local and foreigners, will choose to operate a business through a limited liability company, as this company type is suitable for most of the business activities that can be developed in Manchester and provides a set of advantages for the founders.
Also, it is especially designed for those who want to set up a small or medium-sized company, and in Manchester, most of the businesses fit in this category.
Once the founder has decided on the company type, then it is required to select a suitable trading name.
The company’s founding documents have to be prepared. Provided that you have opted for a limited liability company, then you will have to prepare the articles of association and memorandum, documents that have to be drafted in front of a lawyer.
Here, our lawyer in Manchester can provide legal assistance.
Once the documents are prepared in accordance with the limits of the law and the wishes of the investors, then they have to be signed in front of a public notary in Manchester. The regulations regarding founding documents are given by the Companies Act 2006.
As a foreign investor, one is entitled to register any of the legal entities that are prescribed by the Companies Act 2006. The selection should be based on the needs of the business.
Regardless of the decision, the process of company formation in Manchester will start by submitting the registration application, by preparing the Form IN01.
The processing of the registration file can take approximately 8 to 10 days, but expedite registration is possible through the payment of larger registration fee (of GBP 100).
As a general rule, both local and foreign investors will opt for the limited company, because it provides a set of advantages that can be attractive especially in the case of those starting a small and medium sized company.
For the process of starting a business in Manchester, investors will have to appoint 1 director, prepare the documentation for a corporate bank account and many others.
Our team of Manchester solicitors is ready to assist you in this process, as well as to prepare the company’s statutory documents and other papers (certificates, licenses, permits, etc.).
Why start the process of company formation in Manchester?
If you want to invest in the United Kingdom (UK), Manchester can become the ideal place for this activity. Currently, the city is one of the most competitive regions at a national level and investors can enjoy lower costs compared to the country’s capital, London. Below, you can find few important aspects on why Manchester should be taken into consideration for investment purposes:
- the economy of Manchester has a value of GBP 62.8 billion, being the 2nd most important economy of the country after London;
- the region of Manchester has a population of 7,2 million persons and provides a talent pool of more than 100,000 students;
- in the 2020 Data City report, Manchester was the 1st UK city on innovation, artificial intelligence, cyber activities, e-commerce and other tech industries;
- the price of real estate properties in Manchester is 40% lower compared to London, and the city ranks being the 1st UK city regarding the quality of living;
- Manchester is also very well connected to all other important regions in the UK (trains from Manchester to London depart every 20 minutes).
When starting the process of company formation in Manchester, you should also verify the licensing requirements, the tax obligations your company will have (this can depend on the company type you have set up here), the regulations for hiring personnel and others; the Manchester City Council provides a detailed list on other obligations of local businesses.
Basic obligations of Manchester companies
All businesses in the UK are required to pay the same taxes and they mostly enjoy the same tax benefits. Regional or municipal business advantages can appear.
When starting a business in Manchester, the business owner will have a set of obligations regarding the payment of taxes. Tax reliefs are also available.
They can vary based on the income of the company or the business field in which it operates, the types of investments the company makes and so on, as well based on the legal entity of the company.
For the process of company formation in Manchester, businessmen will have to obtain various permits and licenses, as well as to prepare mandatory corporate documents.
In the case of foreign investors, visas for investments or business may be required and the conditions for these can be explained by our lawyer in Manchester.
What tax exemptions and reliefs are available in Manchester?
According to the Manchester City Council, a business registered in this city can benefit from various discounts and tax reliefs, as presented in the list below:
- small businesses can obtain a tax relief in the case in which they have a rateable value of maximum GBP 15,000 and if they occupy only 1 property in the UK;
- reliefs are also available under the Retail, Hospitability and Leisure Business Rates Relief Scheme 2022-2023;
- the latter is established under the Small Amounts of Financial Assistance Allowance, Article 364 of the UK-EU Trade and Cooperation Agreement;
- under this, eligible companies can receive GBP 336,335 for a period of 3 years;
- business properties which become vacant are exempted from taxation for a period 3 or 6 months since they become vacant (the first, for businesses, and the latter, for warehouses).
As a foreign investor, it is highly recommended to receive legal advice from Manchester law firms, as the local lawyers have the necessary expertise in all legal matters.
For other details on starting a business, our lawyer in Manchester is ready to assist you and represent you in front of local authorities. Our Manchester solicitors can help you prepare the documents for the application, and can help you register for tax purposes. You can also rely on our team for finding a suitable office space in Manchester.