More than 36,000 UK businesses are currently owned by foreign entrepreneurs, according to the Office for National Statistics. Despite recent political and economic changes, the UK remains one of the most attractive destinations for starting and growing a business—particularly for international founders.
In this guide, legal experts Yulia Barnes (founder of Barnes Law) and Vanessa Ganguin (founder of Vanessa Ganguin Immigration Law) share critical insights for overseas entrepreneurs planning to enter the UK market in 2025.
Why the UK Remains a Top Choice for Global Entrepreneurs
Yulia Barnes highlights the UK’s transparent legal system, low-cost and fast company formation, and full foreign ownership rules as key advantages.
“The UK imposes no residency requirements on directors or shareholders and offers robust protection for intellectual property and commercial contracts,” she notes.
The UK is especially attractive in sectors like:
- Technology & Artificial Intelligence
- Life Sciences & Healthcare
- Creative Industries
- GreenTech & ESG
- FinTech & Aerospace
“London remains a world-class financial centre, backed by strong capital markets and a talented workforce. The UK also benefits from a strategic location and pro-business regulatory climate.”
How Brexit Changed the Business & Immigration Landscape
While Brexit has introduced regulatory divergence from the EU, the UK continues to adapt.
Barnes explains:
“The UK has retained elements of EU law, but we are seeing growing divergence in areas like data protection (UK-GDPR), consumer rights, and digital commerce. Companies trading in both the UK and EU must now tailor compliance strategies.”
In immigration, freedom of movement has ended, making it essential for EU nationals to follow the same visa pathways as other international founders.
Ganguin points out:
“The UK has shifted to a points-based immigration system, offering routes like the Global Talent Visa and Global Business Mobility Route. However, entrepreneurs need to carefully research eligibility before entering the UK market.”
Common Mistakes Foreign Founders Should Avoid
Launching a business without understanding UK legal and immigration systems can lead to costly setbacks.
Legal Mistakes (According to Barnes):
- No tailored shareholder agreement or articles of association
- Inadequate IP protection
- Non-compliance with licensing in regulated industries like fintech or health
- Overlooking directors’ legal duties
Immigration Pitfalls (According to Ganguin):
- Misusing visitor visas: Certain business activities are not allowed without a proper work visa.
- Delaying sponsor licences: Employers must often be licensed to hire overseas talent.
- Missing visa deadlines: Some routes are only available once a business has begun UK operations.
Key Steps to Set Up a UK Business as an International Entrepreneur
1. Company Formation
Register a Private Limited Company (Ltd) via Companies House. Ensure:
- Bespoke articles of association
- Tailored shareholders’ agreement
2. Legal Infrastructure
- Draft strong commercial contracts
- Secure intellectual property rights
- Comply with sector-specific regulatory obligations
- Plan for corporate tax and financial reporting
3. Immigration Strategy
- Seek immigration advice early
- Apply for the right visa: Innovator Founder Visa, Global Talent Visa, or Skilled Worker Visa
- Understand what business activities are prohibited on a visitor visa
Final Advice from the Experts
“Many founders take a minimum viable legal setup approach, but this creates long-term issues,” says Barnes. “Investing in proper legal structures early on enhances your credibility with investors and stakeholders.”
“Plan your immigration route well in advance. Waiting too long can mean lost opportunities, especially with upcoming changes to sponsorship rules that will limit skilled worker eligibility.”
Useful Resources
- Set up a UK Company – GOV.UK
- Visa Options for Entrepreneurs – GOV.UK
- Barnes Law – UK Business Legal Services
- Vanessa Ganguin Immigration Law
Conclusion: The UK is Open for Global Business – With the Right Preparation
Despite the challenges brought by Brexit and tighter immigration rules, the UK remains a world-class destination for global entrepreneurs. With the right legal, tax, and immigration planning, international founders can thrive in one of the world’s most dynamic business ecosystems.
Plan ahead. Invest in the right legal and immigration guidance. And make the UK your next successful business venture.