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

Starting a Mobile App Business in the United KingdomSo, what makes starting a mobile app development business in the United Kingdom such a great proposition? If you ask the experts, the answer is the number of businesses and mobile users in the country.

The United Kingdom has one of the most supportive environments for businesses. Currently, there are about six million registered companies in the country. Additionally, 87% of adults own smartphones in the UK. Thus, it is a market where you will constantly see a great demand for mobile applications.
In this article, we look at some of the most important things you should know while starting a mobile app development company in the United Kingdom.


What Is a Mobile App Development Company?

A mobile app development company develops mobile apps for other companies. It can also create its own app to sell its services. For example, ByteDance is an app development company that owns the popular app Tiktok.

Mobile app development companies can be both large or small. A single person can also run a mobile app development company. Based on their clients and customers, they may be responsible for designing and prototyping, creating, and testing a new app, and providing updates and maintenance to the existing apps.


Mobile App Development Trends

In order to meet the increasing demand of customers, companies are adopting new trends and technologies. Further, they are investing in the development of customized mobile apps. We will see a rosy future for mobile app-based businesses and 5G technology in 2021.

Here are some mobile app trends for 2021:

Virtual Reality / Augmented Reality

In 2021, augmented reality is projected to revolutionize the development trends of apps in different fields such as healthcare, technology, real estate, retail, and others. The AR / VR technology – one of the top trends in mobile app development – is being used not only for an increase in high-quality gaming applications but also for a number of other use cases. Another trend in the mobile app industry related to personalization that will fuel the success of your apps is highlighting your app to other apps.

Internet of Things

Whether it’s running on a smartphone or collecting data from a wearable device in real-time to respond to problems, you get the ability to not only make your app viral but also save lives. For example, various fitness apps on smartwatches have made people more aware of their health and hygiene. When you develop a mobile app in 2021, integration with IoT devices will be your unique opportunity to add your name to the industry’s trendsetters list.

Artificial Intelligence

Machine learning and artificial intelligence can make predictions and serve customers like never before. AI-based machine learning (ML) is being used to improve the security of information technology, detect instructions, and solve user problems. For example, predictive search suggestions and product recommendations in e-commerce are all parts of AI. Furthermore, combining AI with IoT is becoming the norm.

Beacon Technology

One of the latest innovations in location technology, beacon technology, is going to be an integral part of mobile app development. Beacons are essentially small wireless transmitters that send signals to nearby devices. We are seeing them in various forms, such as beacon-enabled airports, mobile beacons, automated personal beacons, etc. Thus, especially if your clients provide location-based services, for example, supermarkets, they may ask you to integrate beacon messages in their apps.

Mobile Wallets and Payment

Now, especially with the COVID pandemic taking the world to the new normal, the increased use of mobile wallets and payment is a no-brainer. The number of mobile payment platforms users was already 2.07 billion in 2019, and this number is set to grow further.

Thus, as a mobile app developer, people expect to create more apps that integrate online payments. Furthermore, especially if some of your clients want their own payment platforms, you will need to put extra effort into the security and reliability of the transfers.


What is the Process for Starting a Mobile App Development Company in the United Kingdom?

As to how the UK company registration process works, here are the basics you need to know.

Essentially, there are two ways for registering a mobile app development company. You can either do it yourself or hire a company that offers United Kingdom company incorporation. Either way, you will need to follow a specific process:

Conduct a Market Research

It is important to use your market research, budget, and industry knowledge as an early step to get a fair idea of whom you want to provide services. App developers specialize in specific areas such as mobile phone applications, graphics software, accounting software, office suites, etc. You will need to make a profile of your ideal client and then prepare and promote accordingly.

Choose Between Native and Hybrid Apps

A native app is made for a specific platform. It may work and look better than a hybrid application but is more expensive to create. Companies provide both native and hybrid app development in many cases, but that is only possible if you have a large team. Thus, if you are just starting, choose either one among iOS or Android, or decide to make apps that work on both platforms.

Choose Your Target Location

The good thing about a mobile app development business is that you don’t need to be confined within a small location. With the existence of the internet, it is now possible for you to work with clients from all around the world. However, it will still help if you target a specific area. If you do so, you will be able to understand the market requirements of your clients well, which will reflect in your product and results.

Register Your Company

Registration process and requirements vary depending on the size and the type of your company. Every company type is available for a mobile app development company, including sole proprietorship, partnership, and a limited liability company. If you are thinking of hiring a few employees, a limited liability company is highly recommended as it gives a proper legal structure. After registering a company, you need to register for corporation taxes.

Build Your Brand Identity

After being up and running, you have to focus on building your brand image. Remember, mobile app development is competitive, and it is a type of business where individual operators can compete with big-name enterprises. Hence, you have to always focus on providing the best and also create good working relationships with your clients, rather than having to find new clients, target word of mouth, which has been proven to be one of the best ways of acquiring new customers.


What License Do I Need to Start a Mobile App Development Company in the United Kingdom?

If you are a single developer working from home, you won’t need to ask for special permissions because app development doesn’t really disturb neighbors. On the other hand, if you want to put up banners or make it apparent to your locality that you are running a business in your home, you may have to ask for permission from the local town planning committee or your landlord or mortgage provider.

Talk to a United Kingdom corporate service provider to be sure of all the licenses you need.

You may need the following licenses:

  • Notify the Information Commissioner’s Office (ICO) to process personal data in an automated form.
  • Public space surveillance (CCTV) license to install CCTV system in your office.
  • Permission to award a degree if you plan to sell app development courses in the future.
  • A Premises Licence in England and Wales for carrying out ‘licensable activities’ at a particular venue (for example, public marketing events). If the venue is unlicensed, you may need a temporary event to notice.
  • Copyright Licensing Agency Licence for making copies of copyright-protected materials. For example, music for your app.
  • Pavement or Street Display Licence to display your company banner.
  • NLA Media Access Limited Business Licence to make copies of newspaper articles for business use.
  • Don’t forget to consult a lawyer or a corporate service provider at least once. It is mandatory, as licenses depend on the nature of business, and you definitely wouldn’t want to get into legal troubles.

Starting a Mobile App Business in the United Kingdom


Starting a mobile app development business is the way to go if you are good at development and know-how to market yourself. However, you should also focus on your business plan and leave the rest to professionals.

3E Accounting United Kingdom is a leading corporate service provider offering company incorporation and other services. We can make your company registration flawless and quick, Contact us and let us register your company in no time.