Beginner’s Guide on Starting a Telecommunications Business in the United Kingdom
The telecommunications industry is one of the fastest-growing industries in today’s time. The sector is composed of companies that operate to achieve global-scale communications through phones, the internet, and other facilities. Many entrepreneurs are taking advantage of the sector’s feasibility and significant contributions to today’s lifestyle by investing in it. And it has proven itself very lucrative with industry revenues approximating to ₤3.32 billion in just the first quarter of 2020. So, if you’re looking for an in-demand and profitable business idea, starting a telecommunications business may be what you’re looking for.
If you think you have the ideal business idea and solution for today’s telecom concerns, here is a beginner’s guide on how to successfully start a telecommunications business in the United Kingdom. Here, we laid down the basic information about the business, industry, and market, and a detailed guide to company registration and licenses in the United Kingdom.
Industry Trends: What is a Telecommunications Business?
Telecommunications businesses create the infrastructure that transmits data around the world. The types of telecom companies include telephone operators, satellite companies, cable companies, and internet service providers. Telecom companies could also be involved in providing telecom equipment, services, and wireless communication.
Telecommunications has become one of the most significant industries and has shown stable long-term growth through the years. This sector has been recorded to contribute 4-5% to the GDP or income in the UK. And because of its works and facilities that improve connectivity, the industry is also a key player in the state’s economic and social progress.
Throughout the years, telecommunications have developed ways of communication, from analogue to digital voice communication, and from mobile data to mobile broadband. Today, telecommunications companies are in a race towards 5G technology that will enable a next-generation user experience and broader capacity. 5G is one of the applications enabling IoT (internet of things), creating a network that will connect people, machines, objects, and devices.
As a response to the growing demand for telecommunication services and facilities in the United Kingdom, the government and various private organizations are taking measures to support the industry. The government has been allocating funds for telecom projects that aim to enhance internet connectivity. Examples of these funded projects and initiatives include Project Stratum in Northern Ireland and the UK Mobile Programme.
How to Start a Telecommunications Business in the United Kingdom
Before starting a telecommunications business, you have to check off plenty of things from your list. First, you need to decide what kind of telecom company you want to be. Do you want to set up a cellular phone company, internet service provider, telecom reseller, or VoIP operator? Identifying the services you want to offer is critical in setting company goals and in planning for other details of the business.
The next important thing is the business plan. Here you need to identify your business by answering questions like, how will you operate and who are your customers and competitors. The business plan will help you outline the details of your business, from your budget to operations and marketing strategies. This detailed plan will guide you along the way, from finding investors to managing the operations.
Another crucial aspect to starting any business is getting the funds to run operations. While a telecom business can be very rewarding, it also entails a big initial investment to start. Therefore you need to secure considerable financing from a loan or funding from investors. Once you have startup capital, you can then begin hiring staff, acquire equipment, and secure a good business location.
Company Registration Process
To register your business, you have to identify which business structure would give you the best advantage. Depending on the nature of your business activity, you can operate either as a sole trader or a Limited Liability Partnership (LLP). A sole trader structure will give you full control of the administration and profits of the business, but with limited state protection. On the other hand, you can consider registering as a limited liability company if you want to go big. Another option to explore is to acquire a franchise from an existing big telco company.
Once you decide on a business vehicle, you have to pick a unique company name for the business. Upon processing the business registration, the company name and business address will be one of the first things asked. The Companies House does not allow the use of a name that’s already used or reserved by another company, so make sure to go over their registry to avoid delays or issues.
Other details you need to provide during registration include you and your shareholder’s personal information. You also need to submit the information about the parties with significant control, and guarantors. You will also have to submit the documentary requirements like memorandum and articles of association. The process requires a fee of £12, which you can pay via debit, credit card, or PayPal. Company registration usually completes within 4 hours from processing.
You may register your business on your own online. To register online, you’ll need to create a government gateway user ID for the company because you cannot use your personal gateway ID. However, you may also choose to register via post, agent, or using an accredited third-party software. The regulations also require that you register for corporation tax within three months from starting your business.
For easier registration, contact a firm offering UK company incorporation services.
Licenses and Permits for Starting a Telecommunication Business in the UK
In the United Kingdom, running a telecom business generally does not require a specific license. All Electronic Communications Networks (ECNs) and Electronic Communications Network providers (ECSs) have general authority to carry out their activities. However, you may need specific licenses to operate some specific tasks, such as satellite operators. You may also need other approvals such as permission to process data, vehicle operator license, license to display your signboard, etc.
To ensure full compliance with the business regulations, it’s best to check with Ofcom before proceeding with your activities. Additionally, you may also get in touch with a corporate service provider. Acquiring these corporate services gives you access to a team of experts who can give you guidance and advice on the legalities and other aspects of your business. When acquiring company formation services, be sure to search only for top firms reputed for their success in successfully launching businesses in the United Kingdom.
Company Formation Services in the United Kingdom
Company formation is crucial in having a good start to your business. The decisions during the company registration can affect how well you’re protected and your capacity for growth in the future. Thus, if you decide to get assistance in starting a telecommunications business, choose only a top UK corporate service provider.
If you need a competent, reliable, and well-established firm to assist you, choose 3E Accounting United Kingdom. 3E Accounting offers business solutions and consultation for starting entrepreneurs and those looking to grow their businesses. To name a few, we can help you figure out how much start-up capital you may need, open a bank account, sort out e-payment gateways and get you a website and domain name. Additionally, we also provide corporate secretarial, accounting, and taxation services.
Trust the corporate service provider that cares for your business goals. Contact 3E Accounting today to properly start a telecommunications business in the United Kingdom.