In the field of startups, the United Kingdom is one of the most sought-after jurisdictions. The Kingdom encourages entrepreneurship and foreign investment. Not all aspiring entrepreneurs are aware of the existence of certain processes and the requirement for specific documentation when launching a business in the United Kingdom. You will require legal assistance to ensure that all processes during the project's launch are properly executed and that cooperation with all startup participants is as effective as possible.
What exactly is a startup?
The foundation of a startup can be the correction of flaws in previously launched projects or the creation of novel categories of goods and services. We can say that establishing a startup company is necessary for the rapid dissemination of new ideas.Iteration, a process in which the quality of products and services is constantly improved through feedback and application information, is used to realize startup ideas.
On the one hand, the product is improving, while the client base is growing. This strategy enables startups to increase their market share and the volume of products/services offered.
The United Kingdom is one of the recognized world financial centers chosen by entrepreneurs to establish a new business. The success of a business is determined by a variety of factors, including the legal requirements for launching a startup project and developing a win-win strategy. As a result, competent legal counsel for a startup is a critical link. Qualified specialists understand all of the nuances and requirements for project implementation; accordingly, they will assist in obtaining approvals for launching a startup, forming corporate documentation, and obtaining the necessary permits.
The British business culture
The United Kingdom was ranked second out of 50 countries in the Cost of Doing Business and Business Climate categories in a country survey to identify the best countries in Europe for a startup. The Kingdom's favorable business climate, which distinguishes it from other European countries, attracts entrepreneurs, despite the fact that startup is more expensive in the UK than in other European jurisdictions.
Launching a startup in the UK
The following are the main reasons why the UK is popular among foreign investors for start-ups:
- Declare an interest in assisting start-ups.
- There are agreements in place with over 100 countries to avoid double taxation.
- Ease of conducting business.
- The legal system is well-known throughout the world.
- Everyone has access to capital.
- Multinational staff with high qualifications.
- The income tax rate is only 20%.
- High-level intellectual property protection.
An important aspect of creating a startup in the UK is not only getting the product to the point of sale, but also complying with legal formalities and assessing the risks and their consequences for your business.
To avoid problems that arise during the initial stages of launching a project, it is necessary to seek the services of qualified specialists and obtain legal support for a startup, which will allow the entrepreneur to choose the right strategy and make timely decisions to eliminate unforeseen nuances.
How to create a startup - legal assistance
Before starting the process of creating a startup, it is necessary to carefully study all existing corporate forms of companies - each has its own specific legal requirements. Contact the lawyers who will accompany your company through all stages of registration to better understand the obligations and responsibilities you will face if you choose one form over another.
Our company offers assistance at all stages, including:
- market research;
- registration of the company and its name;
- development of a business plan;
- selection of ways to finance a startup;
- forecasting potential risks and conducting due diligence on the project;
- and assistance in obtaining an English patent.
Lawyers advise and support the project, from selecting a business structure to explaining regulatory specifics. One reason for seeking specialized expert assistance is that the United Kingdom's legislation is complex and constantly updated (amendments are made to comply with international standards).
To start a business from scratch in the UK, you will need assistance with the following:
- document structure and development;
- intellectual property protection and trademark registration consultations;
- development of all necessary documents;
- regulation of legal formalities of doing business;
- and development of complex financial documentation for investments.
Methods for funding startups in the United Kingdom
- There are two types of crowdfunding: a consumer-facing popular way to raise funding for start-ups in the UK. This method is ideal for those who have a product-related business because it guarantees sales even before production begins. It is accessible via the Kickstarter and Indiegogo platforms. Investor-focused: works through the Crowdcube and Seedrs platforms to raise large amounts of funding.
- Peer-to-Peer Business Loans: These lenders act as a go-between for investors and young businesses, as banks are not always willing to lend to startups due to high risks.
- Business angels are individuals who wish to invest in startups at an early stage of development.
- Investors in venture capital finance high-potential startups. Such a capitalist may become a partner or an employee of the company.
The UK government encourages high-tech startups. The state provides a loan from HMRC or tax breaks worth up to 30% of R&D expenses.
Legal assistance for startups
You will require special legal services for startups in the following areas:
- ownership structures and distribution of areas of responsibility;
- clarification of relationships between partners;
- raising capital and restructuring the company for pre-qualification for investment schemes;
- protecting the company's IP rights and assisting in determining ownership of the company's intellectual property;
- data protection and GDPR - important for launching IT startups;
- exit planning and business structuring with a miscalculation.
Legal assistance for startups based on activity
Fintech start-ups: because the launch of such projects is associated with the identification of risks, it is best to seek advice from specialists who demonstrate the development and sustainability of the business.
Legal assistance for fintech projects includes advice on:
- company ownership forms;
- concepts and business strategies;
- registering a company in the UK;
- drafting documentation, settling formalities with banks and financial regulators;
- obtaining licenses for a specific business model;
- and blockchain projects.
Mining start-ups: Choosing the right business structure and strategy is essential when launching a mining startup in the UK.
Lawyers will assist in the following aspects of launching a mining startup:
- project life cycle consulting;
- transaction support;
- consultation on all issues (environmental, social, management);
- assistance in obtaining a production license;
- risk and prospect assessment.
E-commerce startups: This is one of the world's fastest growing industries. It provides excellent opportunities for foreign entrepreneurs in the United Kingdom. However, in order to start a profitable business, you must be able to manage projects effectively. You will need specialists to help you with the launch of an E-commerce startup in the UK.
Startups in the industry: this is an important and significant sector of any state's economy. The issue of introducing innovations into this industry has become the top priority in this industry. A well-chosen strategy and a clear definition of the functional responsibilities of each project participant are critical to the success of an industry startup in England.
It is preferable to seek support for an industrial startup in its early stages. In this sector, we offer the following complementary services:
- legal form selection;
- industrial property protection;
- support in industrial M&A transactions;
- specialists represent the client's interests in meetings with local authorities;
- assistance in resolving disputes.
IT startups: The UK tech sector is one of the fastest growing. The government encourages business owners to invest in IT startups in the UK because it creates more jobs and expands the country's opportunities.
Consultations on the conditions for the implementation of IT startups:
- Сonstitute legal support for IT startups in England.
- Carrying out various stages of an IT company's Due diligence project launch.
- Providing data protection and information security advice.
- Consultation on the transfer of intellectual property rights for software developed by project participants.
- Assistance with technology and intellectual property protection.
- Help with the licensing of an IT company in England.
Our specialists will provide professional assistance to clients who wish to establish a business in the United Kingdom and will follow the project through all stages. We work with all types and sizes of start-ups, as well as English tech start-ups and large companies that have been growing for years. Our legal experts can also help you establish legal priorities for new businesses and start-ups (including tech companies).
We offer services to help you build a solid legal framework that will effectively manage cash flows and allow you to focus on more important things. Legal assistance for start-ups aids in the long-term success of your business by ensuring compliance with UK legal regulations.