Set Up a Software Development Business in the UK
Hop onboard the IT express as 3E Accounting explains how to set up a software development business in the UK.
Industry 4.0 is the buzzword of the 21st century as it relentlessly drives technological evolution to unprecedented heights. Businesses need to adapt, innovate, and pivot in order to survive and succeed. It is manifest that a key component of any business is its software and systems. The shift to digital and e-commerce platforms has certainly made this de rigueur. The United Kingdom’s software development industry is estimated to be worth GBP34.4 billion in 2021. As a business idea, how to set up a software development business in the UK is worth every penny.
A Business Built on Tech
As its name suggests, software development is the creation and maintenance of software, applications, and its like. It ranges from coding and designing to testing and bug fixes. The future of software development holds much promise as deep tech becomes the norm for businesses.
Entrepreneurial success starts with a scalable business plan that maps out crucial areas to consider. These include market research, competition, financial forecast, milestones, etc. There are usually two types of software development business models that you can consider. This can be either based on product or service. In a nutshell, product-driven companies create and deliver their own software. Service-based companies offer SaaS (Software as a Service) and customisation. Knowing your business model will help you figure out how much start-up capital and funding you may need.
Your plan will also clarify which business entity works best for you., i.e., a sole trader, limited company, etc. Reliable company formation firms such as 3E Accounting usually offer packages that get these matters done for you. Customisable packages include choosing a unique company name, registered business address, rental of serviced office space, etc. You will also need to register with HMRC for taxes and VAT, where applicable. You can also register as a software developer with HMRC.
Of course, as a software development business, you will need a really great website and host, logo and domain name. Business and personal indemnity insurance is also advisable. Consider safeguarding your intellectual property with trademark licensing or copyright protection.
You will need specific licences and permits, and this extends to the software you have developed. It is always best to check with your local council on what approvals are needed. Generally, technology transfer of any sort requires software licensing and patents. Further, processing client information requires you to register under the Data Protection Act 1998
Some considerations to look into include software development, distribution and licensing agreements. This is a complex area that requires a good grasp of the law relating to software licencing, copyright, etc. Engaging professional help is the best way forward to ensure full compliance.
Knowing the pros and cons of how to set up a software development business in the UK is a start. The next step is to engage company formation experts to get the job done seamlessly. 3E Accounting has industry expertise, global experience and innovative solutions that set us apart from the competition. Our digitalised services are comprehensive and customisable, enabling us to deliver solutions that are just right for your business. Contact 3E Accounting today for business solutions that are best in class.