If you’re thinking to join the group of UK entrepreneurs and launch a start-up business for yourself, you will need to join the UK company register and develop your business workflow to fit your target audience. This guideline offers tips to those people that look to become self employed in the UK.
We will cover the main points of starting your own business in the United Kingdom and will tell you more about the different types of legal structure for UK businesses, Here, you will also find out about the situation for sole traders and freelancers in the UK, the types of taxation and employing foreign staff.
How to start a business in the UK?
1. Check that you can legally start your own business in the UK
You’ll need to make sure that your immigration/visa status allows you to work as a freelancer in the UK. For non-EU/EFTA citizens, this may mean ensuring that you have the necessary visa and residence permit.
2. Write a business plan
UK entrepreneurs need a business workflow. This will help you understand whether your business concept for the UK is likely to succeed and be viable. You’ll need to study the market and prepare budget forecasts.
3. Decide on your business legal structure
Do you want to become a sole trader, a partnership, a limited company or just a freelancer? You have to decide the type of your legal structure before even thinking about a business plan.
4. Choosing a business name and a legal address
If you’re a sole trader, you can just use your own name. You’ll need a legal address in order to register your UK business for tax purposes and join the company register in the UK. Only limited companies need to register their name, others can register as a trade-mark to stop anyone else from trading under their name.
5. If you are a UK entrepreneur setting up as a Limited Company
You will need to indicate the directors and the company secretary, work out your shares and shareholders, write your memorandum and articles of association, open a separate bank account and register for corporation tax.
6. Register with HM Revenue and Customs
You will need to book your UK business with HMRC, for tax purposes. Limited Companies need to register with Companies House at the cost of £12 (online) or £40 (post).
7. Check if there are any additional rules for your type of UK start-up business
Depending on the nature of your UK business field, there may be more requirements, such as:
- licenses or permits (selling food, alcohol or trade in the street)
- insurance
- rules to follow if you buy or sell goods abroad or store/use personal information
