Starting a business from scratch can be a very daunting task for most as you imagine there are too many aspects to even think about. In the UK, however, the process for setting up a business is fairly cheap, quick and easy. In most cases, if everything runs smoothly it is possible to set up a business in a day. Once you have done all of the research and spent endless hours brainstorming about the industry you want the business to be based in and how you are going to be profitable then you are more than ready. This short guide will guide you in how to get your brand new business up and running in seven easy steps.
Get Your Tax Sorted!
The very first employee of your company is you, which technically makes you self-employed as you are employing yourself. This can be easily done online using HMRC’s online website or by ringing the HMRC contact telephone number. They also offer a very handy online training tool, which can guide you through the practical elements of record-keeping, filling in your yearly tax return and the process involving employing other members of staff.
Get Your Insurance in Place
Insurance is a legal requirement in the UK and it protects you and your company from having to payout extreme amounts of money for things like accidents, sicknesses, legal fees and thefts. The level of cover your company will require will completely depend on the nature of your business. AXA offers a very handy business insurance wizard that allows you to fill in questions and produce an insurance package tailored to your business. You can then shop around different insurance suppliers or speak to a specialist broker to find the best deal for what you need.
Choose a business name
This is the fun, but the hard bit. You can spend hours and hours trying to find the best name only to find that somebody else already registers it. Use the companies’ house directory to check if your required name is available and then check website domains to make sure that you can purchase a relevant domain address if you wish to create a website.
Set-up a business bank account
Now that you have a chosen business name, you can head down to your local bank and open a business account under your new business name. This means that all finances are separated from your personal funds and protects you as the company director. This is not a legal requirement for sole traders however, we still recommend this.
This is one of the most important steps; make sure that you brush up and have made your business compliable with all of the UK health and safety, data protection and licensing laws. If you fail to meet the stated requirements then you could face heavy fines and even prison sentences in extreme circumstances. Head over to Gov.uk to find all of the information that you require.
Hopefully, this guide will help you through the stressful process associated with starting a business and make taking that first step a little easier!