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By marta-ingles2
- In Uncategorized
Thinking about to start a business in the United Kingdom?
The UK is a country with a favourable business environment, streamlined registration processes and government.
Below, we will explain the first steps to take to set up your own business in the UK and what you need to consider.
You need to make clear which kind of business do you want to create,
its rentability and if it fits in the British market. Verifying that you have got sufficient funds to set it up.
2. Don’t give up on you job immediately
because having a fixed income will make sure some economic stability until the activity of your business improves and stabilize.
3. Choose the right legal form: sole trades, limited company or partnership.
The first option is the simplest one and do not need of too many procedures. As a limited company you will need to divide the finances between the personal ones and those from the business, which provides more legal protection. The last option would be the perfect one if it divides in partners sharing earnings and liabilities.
In UKStartCompany we will advise you on how to achieve the legal form that best suits your business idea.
4. Look up for a business insurance to avoid future problems.
Inform yourself about which kind of insurance is best suited to your company.
- Public Liability Insurance
- Employers Liability Insurance
- Professional indemnity insurance
You can start working as soon as possible
but always taking in mind that if you earn £1000 a year, you need to pay taxes and be registered.Think about a name for the business.
If you are registered as a sole trader, it can be your own name or another and it does not need to be a unique name.
If you are registered as a company, you will need a unique name and be registered in the Companies House. You must have a unique name, an address registered in the UK, inform about the data from the directors and shareholders and create a Standard Industrial Classification (SIC) code which defines the business activity. That procedure has a cost of £12 and it can be done online.
Register the business in the HM Renueve & Customs (HMRC) to manage taxes and meet tax obligations.
– Sole traders must pay Income Tax and National Insurance.
– Limited companies must register for Corporation Tax within three months of commencing business.
If the company exceeds £90,000 of annual goods, it is required to register for Value Added Tax (VAT).
File all the receipts you generate, digitally or on paper.
Keep track of your accounts, income and expenses. You can make use of accounting tools. In the case of Limited Companies it is necessary to submit annual accounts to Companies House and tax returns to HMRC.Find an accountant
who can help you with the type of company and its accounts and advise you on taxation.Open a company bank account.
This is not necessary; however, it will make it much easier in the future. To set one up, you will need a certificate of incorporation for limited companies, an identity document and proof of address for the owner or directors and the company’s registration number with Companies House.
11. Create an SEO optimised website
for your business, use social media such as Linkedin, Instagram and Facebook. Register your business on Google My Business to improve local SEO and implement digital advertising campaigns with Google Ads and Facebook Ads.
UKStartCompany has its own communications team to guide you through the process.
12. Create a company email and mailing list.
Having a record of your customers and suppliers or any other contacts you consider helpful will save you time and work. It is also a way of publicising your company through advertising information, although you need to be aware of the policies around subscriptions.
Networking to make connections and find opportunities is also helpful. You can attend events and business fairs, through entrepreneurial groups and associations or platforms such as Meetup and Linkedin to connect with other entrepreneurs.
Establish terms and conditions for your business that protect you legally.
If you need help, contact a lawyer; if not, use the terms and conditions of your competitors.
14. Register your company name and logo.
15. Pay your taxes.
If you are self-employed, the tax year in the UK runs from 6 April to the following 5 April. At the end of the tax year, you have until 31 January to prepare your accounts, file your tax return and pay the necessary tax.