Establishing your own business in the UK is a great leap forward, especially if you’re used to growing and managing a business here in the US. The good news is, both the UK and the US share many common principles and shared business values, making it a bit easy for you to start your new venture.
Many people who think about launching their own business in the UK tend to focus on the market and potential opportunities. But the business laws of the UK are equally important and must be taken into consideration. This will help you leverage the huge potential of the UK market and build a solid foundation for your business. New Business Centre gives you everything you need to know about building a business in the UK.
Getting Set Up a Business in UK
1. Determine if You Can Legally Start a Business
For UK citizens, you don’t really need any special permission to start your own business. However, if you’re from a different country, like the US, уоu will need a visa to establish and operate a business in the UK.
The UK makes it easy for people from outside the country to start a business. If you’re from a low-risk country, you can apply for either an Innovator Visa or a Start-Up Visa if you need to come to the UK to establish a business. The next step is to assess whether your business will entail investment and employment or not.
2. Develop a Business Plan
While it’s entirely up to you on how detailed your plan should be, a solid business plan is a significant step to establishing a business in the UK. You can create a simple one-page plan or develop an extensive 100-page document.
3. Determine the Structure of your Business
The UK offers a lot of different business opportunities, which would have a great impact on the type of business you are going to run. Your business will fit into one of the following legal structures:
- Sole Trader
- General Partnership
- Limited Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company (Ltd)
- Public Limited Company (PLC)
- Unlimited Company
- Social Enterprise
- Unincorporated Association
- Offshore Company
4. Register Your Business
You must register your business if you want it to officially operate in the UK. It’s important to have a business name that is free from any third-party rights, so you’ll have to check a register of business names.
You will also need to register your business with the HM Revenue and Customs (HMRC), which applies when you make taxable supplies of any sort of goods or services. Depending on your business structure and the level of your activity, you will be required to register for different taxes or not at all.
5. Get Up to Speed on Your Tax Obligations
As an entrepreneur, you will be responsible for paying your own tax and national insurance. Nоt paying your taxes on time can result in serious fines and even imprisonment if you fail to pay tax on time. The main taxes you will be concerned with are:
- Income Tax
- Corporation Tax
- VAT (Value Added Tax)
- Business Rates
6. Secure Funding and Finance
You may require external funding to get your business off the ground, especially when you’re starting out. You can seek finance through your friends and family, but it’s advisable to apply for finance through lending institutions such as banks, credit unions, and credit card companies.
7. Get Business Insurance
It’s important that you have sufficient business owner’s insurance in place to protect your business from any unexpected losses and expenses. Many insurance policies are not focused on covering your business but rather on your personal assets and liability. Therefore, it’s vital to assess your business needs and get proper coverage to ensure that you’re fully protected.
8. Develop a System for Keeping Business Records
It’s essential that you document transactions and business expenses in case you need to file your taxes or do any sort of business or financial audit.
To ensure your records are compliant with UK laws, it’s a good idea to keep certain documents that show your income, assets, personal and business expenses, and liabilities.
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If you want to fast-track the growth of your business, you’re going to need the help of New Business Centre! We’ll help you build your business for success with our training programs and personalized business Action Plans, sign up for free today!.