Starting a Courier Services Company in the United Kingdom
Delivering success with a speedy read from 3E Accounting on starting a courier services company in the UK.
Supply chain logistics is a crucial part of global online eCommerce businesses. As the world shops with an electronic touch of a button, the physical work goes on behind the scenes. All those parcels, etc. need to be delivered, which makes starting a courier services company in the UK an excellent business idea.
A Dynamic Delivery Business
The United Kingdom’s postal and courier services industry includes postal operators and courier companies. It covers two segments:
- Postal delivery of mail, publications, etc.
- Delivery of international and domestic parcels.
Of these, parcel delivery is the more robust sector and includes receiving, sorting, transporting, and delivering a variety of products. Statistics indicated an annual revenue of GBP10.4 billion in 2020.
Your courier business model can be as dynamic as the industry itself, servicing the public as well as other businesses. You can go low-impact and opt for a bicycle or motorbike delivery service. There are also options to have a fleet of delivery vans or trucks. Alternatively, you can hop onto the high-tech trend and consider drone delivery services. It will all come down to budget and research, which makes writing a business plan very essential.
Write-up your business plan with research on location, competition, and how much start-up capital is needed to get started. This should include considerations of whether you will need a single vehicle or a fleet. You may need to rent serviced office space for your operations or a warehouse for storage.
Niching and investing in appropriate software are crucial factors for success. You could choose to specialise in fresh grocery deliveries, same-day deliveries, etc. Consider apps and vehicle tracking software that will keep accurate track of everything. You should also have a website, reliable web hosting, and secure e-payment gateways to handle online traffic. The courier industry is very competitive, so any edge you can give your business will be worthwhile.
The courier business is fluid enough to allow you to operate as a sole trader or partnership. You can also incorporate your business as a limited company or limited liability partnership (LLP). 3E Accounting provides customisable company formation packages and will guide you on the pros and cons of each. Choosing the proper business structure can impact your business, so getting professional help is a good investment.
You must register for taxes with HMRC, and where applicable, value-added tax (VAT) as well. You should also open a business bank account and keep careful track of all your finances for audit purposes.
When it comes to approvals, there are no specific courier licences that are needed. However, the UK Government website does list licences and permits that may be required depending on the type of courier business:
- Valid driving licence and road tax for applicable vehicles ((DVLA)
- Goods vehicle operator licence
- Certificate of professional competence
- Transporter authorisation
If you’re keen on starting a courier services company in the UK with the least hassle, Contact 3E Accounting today. We provide comprehensive and customisable company formation services that will set up your business in no time. All our packages are expertly tailored to meet your specific business needs. Incorporating the latest in technology and innovation, our services are fully digitalised to deliver cutting edge solutions. Get in touch with 3E Accounting today to work with award-winning, global industry experts.