How to Setup and Start Business in the UK
Are you thinking of initiating a business in the UK? Do you want to join the UK entrepreneurs community? If the answer for both the questions is Yes, then you need to register in the company registrar of UK and enhance your business ideas to match with your target audience. Self-employment in the UK is common, particularly in UK territory. If you have shifted to the UK in the plan of initiating a business from overseas, then being self-employed or freelancing is the best form of starting up a business. This is what you have to consider.
This article will cover all the key points of starting a kind of business in the UK and look at the different form of legal complexities for UK companies and more.
Are you legally permitted to work?
Before starting a business check whether you can legally start your own business in the UK or not. Ensure immigration status whether you’re allowed to run a business or not. Either as a freelancer in the UK. For non-EFTA or EU nationals, this means that you have all the required residence and visa permit.
Know your strengths as an entrepreneur
Initiating a business is a huge process that requires a lot of energy, thought and a thorough examination. You need to gauge your strengths, weaknesses and skill-sets. By closely observing you can take the first step of knowing where to start, what to start and what you cannot. It is essential to do SWOT analysis even you have the best idea for your business. Come up with a business idea where you can prove yourself. For instance, A person with a programming mindset can be well adapted to the development company. If you are a person who has an analytical and analyzing skills can be considered for an accountancy or finance business. In the same way, if you are well in negotiating then you don’t take up a marketing job. These are just three situations but it gives an idea of your thought flows. Prior to starting a business, you have to be absolutely clear about
Your motivation behind setting up a business
Ensure your goals and mission are complacent to your business. It is essential to know why you’re starting a business so as to make a long journey.
Make sure it has to be a good start. In reality, there is only one motive to start a business.
Understand the passion and be a successful entrepreneur. This reason behind this is very simple. You work hard and save more on business. Often the thin line between a successful enterprise and a failing business is lack of passion.
Choose a business structure
The first and foremost thing many entrepreneurs juggle with while starting a business is what type of business to go with. Sole trader, partnership, limited company or LLP. These kinds of businesses have their own pros and cons. Hence, it is always a four-way crossroads. You stood in the middle and thinking about how to go on an onward journey. Having studied all the options it is always a better idea to look for the simplest structure. However, you can move on to a more complicated and sophisticated process once the business scales up.
Choose a company name and address and then register
When deciding about a company name consider all the legal requirements. At the similar time, apply your creative and common sense. Make sure your name is not a trademarked or copyrighted by any other company. You can check it through the governmental site of UK(GOV.UK). Don’t select the name which has a profanity in it. Opt for the business name which is easy to spell and pronounce and more importantly simple to remember. Apply your creative skills over here and brainstorm as many names as possible. Ultimately, it is your business so decide diligently.
Are you starting a limited company? Yes, then have a destined location and registered address. This will appear on your all your listings and it is where the business posts are delivered. Annual return requests and corporate tax filings are also sent to this address.
Safeguarding your accounting, finances and tax
Once you set up the legal structure of your business, there are vital tax and financial responsibilities to look at. This can be sorted out though
Setting up a valid business account. Carefully select the bank, as you will be staying with this bank until your business runs. Record and keep the financial transactions updated. Record all your incomes, expenditure, and any other financial transactions that affect your business on a daily, monthly or yearly basis. Organizing an up-to-date financial recording is beneficial at the time of your tax filings.
Register for corporate and VAT tax and understand business rates that are levied on your company’s property by the UK government. They are charged annually on business premises including offices, factories, shops warehouses etc.
Register with customs and HM revenue
For any businesses to start they have to register with HMRC. They are most essential for tax purposes. All limited companies need to register with a business house at the cost of £40 if it is a post or £12 online. If there is any significant change you need to inform the concerned authorities. If there are any changes in the registered address then keep the business house/HMRC informed.
The UK from the past has been alluring the tourists. It has been an attractive place to initiate a business. Especially if you are a foreign citizen. There have been a lot of changes in the recent past. This has made a daunting task for all entrepreneurs. But with a well-executed plan and a better plan, there’s still plenty of room for positivity. With the above-said points, it is always an easy system to handle.