Set Up a FinTech Business in the UK
3E Accounting reveals all you need to know on how to set up a FinTech business in the UK.
FinTech businesses are at the forefront of the commercial charge driving the global marketplace. There are currently 20,925 FinTech companies in the world, and 1800 in the UK, utilising technology to innovate financial management. The sector is incredibly competitive and is considered the United Kingdom’s most influential start-up and scale-up segment. Here are some main considerations on how to set up a FinTech business in the UK.
The Financial Cradle
Financial technology businesses are accelerators of change, out to innovate and modify the way traditional finance has been run. FinTech businesses work by providing innovative solutions for the financial sector. The aim is to enhance efficiency and security, streamline operations, and augment user experience.
Almost everyone at some point would have been exposed to FinTech – think online shopping, e-payment, mobile banking, etc. It is very much a part of the future and is a business worth working hard on. To get started, you will need to consider how to develop your FinTech app development.
Research for your business plan should identify what problem or niche you will be providing a solution for. This can include cryptocurrencies, trading, etc. Next, you will need to consider the technology or ‘tech stack’ and the people you need for software development. Check out the competition, target audience, and do diligent market research. Figure out how much start-up capital you will need and how to go about funding. This can include crowdfunding, angel investors, venture capitalists, etc.
The most important consideration comes down to regulations, especially the General Data Protection Regulation (GDPR) 2016. There is no one governing body that regulates all FinTech businesses, but the industry has extremely tight rules and laws. Ensure your business is compliant by:
- Registering with the Financial Conduct Authority (FCA).
- Registering with the Bank of England’s Prudential Regulation Authority (PRU)
- Registering with the Information Commissioner Office (ICO)
- Registering with the UK Anti-Money Laundering Scheme (AML)
- Customer due diligence or Know Your Customer (KYC)
- Relevant digital certificates
You can operate as a sole trader or partnership or incorporate a limited company or limited liability partnership (LLP). FinTech businesses usually opt for a limited company structure as it offers the protection of limited liability. It is also easier to get funding. After registering for taxes with HRMC, you will also need to register and pay the Data Protection Fee. This is done with the ICO unless your business is specifically exempt.
FinTech as a business can be demanding – you will need to prioritise technology solutions as well as regulations, etc. Engaging professional help to get the legwork done can be a blessing in disguise. The experts at 3E Accounting can guide you on how to set up a FinTech business in the UK seamlessly. Our company incorporation packages are innovative, customisable, and fully digitalised. We also offer a wealth of experience from our global affiliates and partners to ensure you get the very best. Contact 3E Accounting today for bespoke business solutions that will ensure your company is future-ready.