A guide to trade business expansion amid the UK’s skills shortage

Discover essential strategies for expanding your trade business in the UK amid the skills shortage. Navigate challenges with expert guidance.

Published on:

21 Oct 2024, 7:00 am

*This content is brought to you by Sable International

The UK is experiencing a severe shortage of trade skills, especially in the construction and IT fields. This leaves a gap for foreign businesses to establish a presence in the country and bring their workers in to fill these much-needed roles.

The UK faces a significant shortage of skilled tradespeople, including bricklayers, welders, carpenters and those who install fibre lines. There is a gap in the market for overseas trade companies to launch a business in the UK and provide the country with the skills that are sorely needed.

The process of moving your trade business to the UK can be complex and you'll need to follow the right steps to ensure everything goes smoothly.

1. Set up as a UK entity

Incorporating a business in the UK is straightforward, but you will need at least one British citizen to serve as a named director, as well as having a UK-based shareholder and a registered office address in the UK.

Next, you'll need to choose between opening a branch or a subsidiary of your company. Either option will give you the ability to apply for a sponsor licence, which is necessary if you plan to hire foreign workers. This is crucial if you want to bring your South African employees to work in the UK.

Branch vs subsidiary

A branch is an extension of the parent company, operating under the laws of a different country. It is not a separate legal entity, so the parent company is fully responsible for the branch's operations. The branch's annual financial statements must also be filed with Companies House in the UK.

In contrast, a subsidiary is a completely separate legal entity from the parent company. This means the parent company is not liable for the actions or decisions of the subsidiary, offering protection from liability if the subsidiary incurs a loss.

Both options have their advantages, and it's important to choose the one that best suits your company's needs.

The benefits of operating as a branch	The benefits of establishing a subsidiary
A branch is quick and easy to set up.	A subsidiary is considered its own legal entity, so it can own property.
A branch can be converted into a limited company or subsidiary at any further point.	A subsidiary is far more credible with UK suppliers and other companies as it is considered a UK company, meaning it is governed by UK laws.
A branch can be closed without formal notice.	The parent company's profits are shielded from being taxed by the UK government.
	The parent company does not have to file their year-end financial statements at Companies House.

2. Manage your administrative responsibilities

Your British employer will have to take care of several administrative duties before your business can operate in the UK, such as:

Registering your company for taxes
Setting up a UK business account
Registering for auto enrolment

3. Apply for a sponsorship licence

Once this is all in place, you will be able to apply for your sponsor licence. The British citizen that you employed will also be able to serve as the Authorising Officer. This is a senior person who is responsible for the actions of staff who use the sponsor management system to issue Certificates of Sponsorship (CoS).

Sable International's business immigration division can assist in ensuring that getting your sponsor licence is a smooth process.

4. Skilled Worker visas for your employees

After your business obtains a sponsorship licence, you will be able to issue Certificates of Sponsorship, allowing you to sponsor your South African employees for a Skilled Worker visa, provided they meet all the required criteria.

Requirements for a Skilled Worker visa

To qualify for a Skilled Worker visa, your employee must accumulate a total of 70 points under the points-based system. A core 50 points are awarded for having a job offer from a licensed sponsor at the appropriate skill level and for demonstrating English language proficiency. The remaining 20 points are tradable, meaning they can be earned through various additional criteria.

Since many trade jobs are included on the Immigration Skills List (ISL), your employees may benefit from certain concessions, such as reduced salary requirements and a lower visa application fee.

Having dedicated support to manage Certificate of Sponsorship (CoS) issuance and multiple Skilled Worker visa applications can significantly simplify the process and reduce stress.

How Sable International can help

Expanding your business to the UK is an exciting step, but it can feel like a maze of paperwork and regulations. That's where Sable International comes in. We've got the know-how and global reach to make your business relocation smoother and more successful.

From setting up your UK business to offering guidance on working regulations, immigration solutions and tax registrations, we're here to support you every step of the way. Let us take care of the details, so you can focus on building your business in the UK.