A systematic approach is required for starting a firm. It’s time to register your firm and “officially” enter your chosen industry once you have completed the fundamental procedures (know your business niche, make a list of your company objectives, etc.).
The following list of 7 stages will help you effectively register a business in the UK:
1) Consider a Company Name
Your company is your child. As a result, you should pick a suitable, interesting, and powerful name. Think outside the box and consider longevity. When you obtain the all-clear, check with Companies House to determine if the desired name is already taken. Then, simply purchase the website domain!
2) Determine Your Business Type
In a technical sense, this is the registration point. According to the official Government website, you must register yourself as one of the following depending on your location, type of business, and whether you plan to hire people as employees:
- Sole proprietor
Establishing a sole proprietorship is quite simple. However, you alone will be in charge of managing the business’s financial affairs, including keeping track of your tax filings. However, you must make sure you haven’t previously been called from a different name earlier in your life span. In that case, you might need to change your name in all the legal documents as well. If you want to change your name to a new one, you can contact the UK Deed Poll Office for this service.
- Limited Company
Your personal funds and business finances must be kept separate if you register as a limited company. To register and manage your books, you might seek the assistance of an accountant.
- Partnerships
This is the simplest way for two or more people to operate a joint business. The company’s financial obligations, including debts, are shared jointly by both partners.
3) Set up a Business Account
Your business is a separate legal entity from you as an individual. Thus you must open a business bank account. Although a sole proprietor is not technically compelled to do this, doing so is strongly advised to maintain organised and transparent financial records.
4) Address all regulatory concerns
There are certain rules to follow while starting a new business. You must adhere to all legal requirements, including data protection, health and safety, and licensing. Nowadays, it has become simpler for organisations to follow complex legal technicalities due to the rapid internet accessibility to the most important regulatory initiatives.
5) Obtain Insurance
You must ensure you, your company and the employees are protected from severe hazards, including accidents, thefts, illnesses, and legal costs! Your choice of insurance coverage will be based on the nature of your company’s operations. Consult with various insurance companies to find the best terms and conditions for your business. It’s vital to remember that specialised brokers can work well for businesses in specific markets, while trade associations can provide their members with significant discounts.
6) Organise your accounts.
To ensure your records are open, current, organised, and well-documented, you can either build up your bookkeeping system or hire an accountant.
7) Decide on a Workspace
Manage your business from an appropriate space or location. Your local council or authority can provide information on your area’s best commercial real estate options and prices. But if you work from home, you should be aware of the following:
- Learn how to add a percentage of your household expenses to your company’s costs.
- Be aware of potential capital gains tax implications if you only utilise one or a few rooms or areas of your home for your business.
- If you rent, you must check your agreement to see if working from home is permitted.
Registering your business as long as you follow these basic steps is easy. There is a wealth of information online and on the official government website.