How to Set Up a Business in the United Kingdom – a Complicated Process
Setting up a business might be a time-consuming and complicated task. It requires a lot of business planning, including financial planning, operations planning to start a business. The investor himself can easily handle some functions, but procedures of acquiring a license, developing an online website require professional help. Hence, we offer reliable services which will guide you on how to set up a business.
Different Steps on How to Set Up a Business
There are many steps which will tell you how to set up a business such as:
- Draft a business plan
- Choose the right business structure
- Select a unique company’s name
- Develop your brand
- Set up an office
- Understand legal compliances
- Acquire required licenses
Let Us Understand Each One of These Steps Required on How to Set Up a Business:
Draft a Business Plan
First, you have to define your business objectives and the right operations which will implement your actions to achieve the business objectives. You will have to conduct market research and do competitor analysis to understand how great your business idea is.
Market research is essential when you are setting up a new company. You need to define your target audience, promotional activities to target these audiences and the pricing structure of your product.
When your business plan is intact, you can easily set up a business and reap profits.
Choose the Right Busines Structure
Second, you have to choose the proper business structure because setting up a new company is essential. You need to consider the pros and cons, and also that it meets your business requirements.
- Sole trader: It is best suited for service-related business. The owner of the company enjoys the profits of the company and is liable for the business. Easy to set up and manage, the owner takes all the decisions of the business.
- Partnership: A firm set up when two or more people come together to start a new business. The partners are responsible for all the liabilities and decisions of the company. They share profits based on their contribution made. Sharing management allows one of the partners to enjoy his holidays and not to worry about the business when he’s ill.
- Limited company: A private company where the investors of the market are liable for the contribution made to start the business. They need to submit their financial records and enjoy the tax regime annually. Setting up this type of business structure allows you to control your financial risk.
- Limited liability partnership: It suits for professional services. All the partners in this company are liable to the contribution made in setting up a new company, and they don’t receive any tax benefits from the government.
3E Accounting can help you in choosing the business structure model, which is suitable for your business requirement.
Select a Unique Company’s Name
Choose a unique company name which is related to your products or services. You need to brainstorm yourself to select the company’s name and also have a list of 4-5 names. You need to check if this name is unique and no other company in the UK has used your company name. Then, register your unique business name with the Registrar.
Develop Your Brand
You need to develop your brand in today’s competitive world. You need to create a meaningful logo, acquire different marketing strategies, meet the customer demands and get recognised amongst the masses. Although it is a challenging job to develop a brand once established, the business enjoys the maximum profit. To build your brand, you need to carry out many promotional activities (both traditional and digital methods) to reach out to your target customer. Having an in-house marketing team will help you in developing your brand.
Set Up an Office
You need to select an adequate office space to run your business. Also, you have to choose the right amount of space required in the office, the number of desks, the phone and internet connection. You will have to register this office address so that it becomes the mailing address for documents and other work.
Understand Legal Compliances
Different industries have different legal agreements which must be duly met by the investors. Understand the legal contracts of your business niche and take all the necessary steps to fulfil them.
Acquire Business Licenses
Businesses such as the food processing industry, exports, and imports require an exclusive business license from the government of the UK. You must list all these necessary licenses which are mandatory and apply for each of them to run your business smoothly.
Other Business Requirements
All these steps will guide you on how to set up a new business. But you will also need to understand some additional requirements such as hiring an accountant, following the UK taxation system and plan your finances well.
Accounts and taxation are essential parts of the business. Hiring an experienced professional will help you with maintaining financial records and filing tax returns to the British government.
You will need to hire employees who can handle and manage the operations of your business. 3E Accounting can help you with the entire recruiting process and provide complete support on how to set up a business. Contact us now!