Beginner’s Guide on Starting a Bakery Business in the United Kingdom

Starting a Bakery Business in the United Kingdom The bakery business is an essential business in many countries worldwide, all the more in the United Kingdom, where bakeries are considered a staple business to the sweet-toothed residents. The oldest bakery in the UK, located in Plymouth, dates all the way back to the 1600s. According to the local legend, the Pilgrim Fathers even paid a visit to the old bakery, taking some fresh baked goods onboard. Fast forward to today, the baking industry in the UK is not showing any signs of slowing down. The ever-increasing demand for baked goods witness the growth of many up-and-coming bakeries – and this could be you!

Most bakers dream of starting their very own bakery business but often discard their plan after falling short of not knowing what to do or where to start. Bakeries can be a highly lucrative business, but just like any other business, one has to save up money. Besides, possessing the proper knowledge and action plan is vital to a baker’s journey of opening a thriving bakery business. If you want to leap from being a home baker to having a professional bakery business in the United Kingdom, you’re right on track!

Every bakery business varies from one to another (unless they are a chain, of course). As a baker and an entrepreneur, you must have clear goals on what you want your business to be. The company’s size, location, equipment, labor-power, capital, and other miscellaneous costs must be determined beforehand. At first glance, it may seem to cost a lot; however, if you are confident and have the right strategy, your investments and effort will soon come to fruition.

Contrary to what many people or even you might think, starting a bakery business in the United Kingdom is relatively straightforward. Regardless of whether you live in the UK or have plans to move there in the near future, we will help you navigate starting a bakery business in the United Kingdom. This article will explore the business registration process, the licenses needed, and where you can find more help starting your business in the UK. Take a look below!


What Is a Bakery Business?

Be it a cookie, cupcake, or a pastry business, as long as you put it in the oven and sell your baked goods, it’s a bakery business! From birthday cakes, festive tidbits, or for a simple Sunday’s baguettes, people always pay the bakery a visit.

In the UK, the bakery market is worth more than 3.5 billion pounds, making a sizable share in the country’s food industry. This is no surprise, given how up to 10 million loaves of bread and baked products are sold daily. Most bakeries start from a baker’s humble kitchen and expand to beautiful cafes, eateries, and factories.

Bakeries are where people go to satisfy their sugar cravings. However, the process of starting a bakery business might not be as sweet. You must take multiple factors into account. This includes steady income to finance your business, officially registering your bakery, and making sure your shop is compliant with all the necessary permits in the country. If the thought of getting the registration work done makes you break a cold sweat, you can opt to contact a corporate service provider in the UK instead.


Going About the Business Registration Process

Here’s where we start getting real – registering a business is the next step in your bakery journey. To register one’s bakery venture, all you have to do is follow these few simple steps. First things first, decide on your company’s structure. Most businesses choose to register their business under limited liability companies (LLC).

LLC allows owners to protect their personal assets, lower tax rates, and of course, have their debts limited only to the company. However, keep in mind that each company type has different requirements from one to another. Therefore, do plenty of research before selecting the best choice for you. Next, register the name you have chosen for your business. On a side note, double-check that the name you’re going for is not used by other companies or trademarked.

After that, you can proceed to register with the Companies House. Among the documents, the application will require information on your registered office address, company directors, and shareholders. The fee for registering with Companies House is relatively cheap, only costing £12. You can choose to register for Corporation Tax together with Companies House or do it separately.

If all your documents are intact, your company can be registered in a matter of 24 hours. You will be given a certification of incorporation to signify that you are now a legally existing company. If your business falls under the self-employed category, you must notify the HMRC about paying your taxes. You can also opt to engage with company incorporation services to assist you.


Licenses and Permits That You’ll Be Needing

To operate any food business in the UK, one must first obtain proper licenses. You must apply for the food registration business. Depending on the use of your ingredients, a food premises approval license might be needed as well. Not all licenses are necessary, and they can very well vary from one bakery to another.

Remember, most licenses take up to 28 days to be processed. The Food Standards Agency (FSA) will drop by to check if your business is up to standard and guidelines compliant. Additionally, you can take up training on food handling and preparation to improve your credibility as a liable baker. You can learn more about company registration in the United Kingdom.


Need an Extra Hand?

Starting a bakery business can be challenging, especially if you are a one-man or woman-army. There’s much work to do, and you need all hands on deck. Nevertheless, this does not mean your dreams can’t take off – all you need is a little bit of extra help. And we’ve got you!

Starting a Bakery Business in the United Kingdom

We are 3E Accounting – an all-rounded corporate service provider in the UK with more than a decade of experience. Our experts have experience in assisting entrepreneurs all over the globe to get their businesses up and running. You can be one of them too! Let us handle the nitty-gritty work while you channel your focus onto your bakery. If you want cost-effective, time-saving business solutions, don’t hesitate to contact 3E Accounting today!