Beginner’s Guide on Starting a Cheese Making Business in the United Kingdom
From tasty cheese burst pizzas to mouth-watering Lasagnas, we all need a little cheese in our lives. This very famous milk product gets its name from Latin caseus, which further means ” to ferment, become sour”. Cheese is not only a delight to your taste buds but is also a great source of calcium, fat, and protein. With the use of cheese as an ingredient and delicacy itself, starting a cheese-making business is a great idea in the United Kingdom.
What Is a Cheese Making Business?
A cheese-making business is a business that produces and supplies cheese. They may sell cheese directly to the customer or to various restaurants and food manufacturers that produce cheese-based food.
Cheese is made by fermenting milk which might sound easy, although it can be a long process. The process of cheese making contains six very important steps: acidification, coagulation, separating curds and whey, salting, shaping, and ripening.
Although the steps are Pretty much the same everywhere, every maker has their Own senses of sight, touch, and smell. Cheese making is considered both an art and science because both skills are required in the process of the production of cheese, but it’s all worth it eventually.
Cheese Making Industry Trends
Globally the cheese industry is moving in two directions. The first is automation. It involves unit sizes of large cheese dairies making more cheese with more efficiency for their operations.
On the other hand, there are many small, local cheesemakers who are increasingly focusing on artisan cheeses that are made in a traditional or non-mechanized way using high-quality ingredients only. Cheese like Mozzarella, cheddar, Parmesan and so on are famous and traditional types of cheese.
The dairy-free, plant-based cheese-like products are in trend in the current market as dairy-free products have been a rising trend in the food industry for quite some time now. About 14% of the world population are vegan. Therefore, vegan cheese can also be very profitable in the emerging market, which can possibly help you stand out.
Besides vegan cheese, developing new flavours is also a way for cheese producers to stay in the competition. But, for that to happen, you Will need various cheese making equipment and an innovative mindset which Will help you in the long run and spread your market to distinct consumers. So, cheese making can always be an ideal plan for anyone willing to start a business for the first time.
Industry Situation in the United Kingdom
The current cheese market in the United Kingdom is worth in excess of £3 billion. With that being said, starting a cheese making business in the UK can be very commercial as well. The UK is a flourishing market for new business, with approximately 660,000 new companies registered every year.
According to a 2018 survey, Over 375 enterprises are actively operating dairies and producing cheese in the UK only. According to the official data, The UK has around six million private sector businesses. This figure is growing rapidly as well. Since 2000, the number of businesses in the UK has increased by 2.4 million.
The Process for Starting a Cheese Making Business in the United Kingdom
Starting a business in the UK can be a little challenging, especially if you are outside the European Union. However, don’t worry. We are here to help you out with anything you have to know.
We discuss some important steps while starting a cheese making business in the United Kingdom:
First, Get Your Permissions as a Foreigner
EU and EEA nationals don’t need special permission to start businesses in the UK, with the exception of residents from Bulgaria and Romania, but If you’re from a country outside of the EU or EEA, you may need a visa.
However, if you want to start a business in the UK as a foreigner, you have to make sure your immigration status allows you to set up a business so that you can check on your visa and residence permit. You can apply for various visas based on your enterprises, i.e., innovator visa, Startup visa and investor visa.
Business Plan and Structure
You should have a good business plan and decide the best structure for your business enterprises. For example, the business structure can be sole trader, general partnership, limited partnership, Limited liability partnership (LLP), a private limited company (Ltd), unlimited company and so on.
For more on business vehicles, see- a guide to guide to company registration in the United Kingdom
Choosing the Name and Address
After choosing the structure, the next step can be choosing a name and address for your company. The name should be easy to read and not offensive. It also can’t be similar to other companies and can’t infringe on anyone’s trademark.
You’ll also need a registered address for registering your UK business for tax purposes and joining the company register. The registered address should be a physical address and not a PO Box Number.
Register for the Taxes
The next step is to register your UK business with HMRC for tax purposes. Limited Companies need to register with Companies House at the cost of £12 online or £40 by mail. Furthermore, for non-EU/EFTA nationals, this may mean having a relevant work visa and biometric residence permit.
It’s important to know that the rate of Corporation Tax in the UK is 20% on profits, minus any allowances and relief. All UK businesses and UK entrepreneurs need to register with HMRC for tax purposes and are responsible for submitting their own tax returns.
However, UK businesses will also need to register for VAT if the annual turnover is more than £83,000. The UK tax year runs from 6 April. Tax returns must be submitted, and any tax owed should be paid by 31 January following the end of the previous tax year.
Not only the tax policies, but you must also ensure that you have the right level of insurance to stay within the law and to protect your business. There are a number of insurances in the UK, including public liability insurance, employer’s liability insurance, professional liability insurance, building insurance and content insurance.
If you want help registering your business, check United Kingdom company incorporation services.
Before starting any business, you have to keep a number of things to your mind. Start from testing your business plan, and for that, you can conduct a SWOT analysis, which includes checking the strengths of weaknesses, opportunities and threats of your Business.
Further steps can be branding for your business, (i.e. creating a brand that stands out in the long run). Deciding on a good business name is also a very important step: does the name make a positive first impression? Is it easy to say and understand? Is it memorable?
Creating a business logo, working on cost and funding, marketing, ensuring and choosing suitable premises for your business are also important steps to take care of.
You also have to educate yourself about the business laws and regulations in your area, which Will also further help in finding accurate support for your business.
Your business should fill gaps in the market and stand out in the long run, so taking effective steps before starting a business is very beneficial considering the distant future of your business. One of the most important things to take care of before establishing the business is to secure a licence or permit, which we Will discuss more precisely about.
You can take help from your corporate service provider to plan for your business.
Licences for Starting a Cheese Making Business
For starting a dairy producing business in the UK, various laws cover all aspects of the production process.
You also must register with the local environmental health department. Furthermore, if you are planning on making organic cheese, you also will need certification of organic status from one of the approved certification bodies. The largest of which is the soil association which is located in Bristol, UK.
Moreover, if you may have planned to use vehicles like a van for trading and other business-related activities, you must have an operator licence for each Traffic Area in which you have a base. The licences are accoutered by the traffic commissioner for that area.
Therefore, there are eight Traffic Areas covering England, Wales and Scotland. Anyways, being your least concern, a music licence is also required from PPL PRS Ltd if you are planning on playing the music of any sort in public which, as stated, might or might not be your concern at all.
When employing people in the UK for your business, you should take care of things like minimum wage rules and make social security and pension contributions in line with the regulations for the staff providing security and other secondary favours to your staff helps in making them more loyal and contributed towards your business which is always good for the long run.
In conclusion, starting a cheese-making business in the UK is a very profitable idea for new entrepreneurs as well as for the people planning to start a new business, and these are the things you have to take care of before starting.
You can contact 3E Accounting if you are looking for professional help for starting your business. We will help you from the beginning to the end, from getting your visa to completing the registration and applying for the licences for you.