Small business insurance from £5.13 a month.Get a quote.
ENTREPRENEUR HANDBOOK
  • Start a business
  • Buyer guides
    • Finance & insurance
    • Software & services
  • Topics
    • Finance
    • Insurance
    • Technology
    • Marketing
    • Human resources
    • Legal
    • eCommerce
    • Leadership
    • Procurement
    • Investing
    • News
  • More
    • Advertise with us
    • Subscribe
    • Privacy policy
    • Terms of use
    • Contact us
Subscribe
No Result
View All Result
  • Finance
  • Insurance
  • Technology
  • Marketing
  • Human resources
  • Legal
  • eCommerce
  • Procurement
  • Leadership
ENTREPRENEUR HANDBOOK
  • Start a business
  • Buyer guides
    • Finance & insurance
    • Software & services
  • Topics
    • Finance
    • Insurance
    • Technology
    • Marketing
    • Human resources
    • Legal
    • eCommerce
    • Leadership
    • Procurement
    • Investing
    • News
  • More
    • Advertise with us
    • Subscribe
    • Privacy policy
    • Terms of use
    • Contact us
Subscribe
No Result
View All Result
ENTREPRENEUR HANDBOOK
Subscribe
No Result
View All Result
Start a business

Starting a business in the UK

Published by Editorial team, last update Nov 23, 2019
Closeup of a Union Jack, symbolising starting a business in the UK

If you plan on joining the community of British entrepreneurs and start your own start-up business, you will have to join the UK company incorporation and develop your business ideas to get your audience interested. This guide offers tips for people who want to work for themselves in the UK. This guide is meant for people who want to become self-employed in the United Kingdom.

Independent workers in the UK are fairly common, as there approximately 15 per cent of them. If you have come from abroad to the UK, self-employment, or becoming a freelancer is something you might want to take into account. This article covers the key points of starting a business in the UK and will guide you through various types of legal structure of UK companies.

Related posts

  • Business banking: Best banks and accounts for UK businesses
  • Business loans and funding options for UK businesses
  • Business blunders to avoid when starting a new business

Steps on How to Start a Business in the United Kingdom

  1. Make sure that you can start your own business legally in the UK. You have to make sure your immigration status allows you to work as a freelancer in the UK. This can mean ensuring that you have the visa and residence permit required for non-EU / EFTA citizens.
  2. Come up with a business plan. If you are serious about starting your own business in the UK, you’ll need a good business plan. Your plan will help you figure out if your business ideas for the UK have a chance to be successful. You will need to analyse the market and make budget forecasts as well. The business plan and cash flow prediction models can be downloaded from the UK government website.
  3. Choose your legal business structure.  You could be a sole trader, an investor, a freelancer, or just a limited company For info, see the below section on UK business forms.
  4. Pick a company name and address. If you are a sole trader, you can use your name. You will need an email for the registration of your UK business for tax purposes and for joining the company register. Limited companies are the only ones that have to register their name, while others can register as a trademark to prevent anyone from trading under their name.
  5. In case you are a UK contractor setting up as a limited company. You should appoint managers and corporate secretaries, create your shares and investors, write your memorandum and association papers, open a separate bank account and register for corporation tax.
  6. Register with HM Revenue and Customs. For fiscal reasons, you have to register a UK company with HMRC. Limited companies have to register with companies house online (it isn’t free of charge).
  7. See if your startup UK business requires any additional rules. There may be additional requirements depending on the nature of your business. These include:
  • licenses or permits (for example, food or liquor sales, street music or trading);
  • insurance;
  • regulations you have to follow in case you buy or sell products abroad, or store / use personal data.

You should focus on getting your business up and running after you have completed these steps.

Types of UK business structure

There are several different types of business structure in the UK. You can choose the one that is most appropriate for you:

Sole trader

This is the alternative if you want to work as an independent worker in the UK or have your own company.

General partnership

This type of business requires at least two people (or companies). Corporate liability is shared equally between partners, the profits are shared equally, and every partner pays tax on their share and is jointly responsible for all kinds of losses.

Limited partnership

Limited partnerships are similar to general partnerships, but they have at least one general partner, who runs the business and is personally responsible for all company debts.

Limited liability partnership

This is a partnership contract where each party does not assume personal responsibility for debts which the UK company can not pay.

Private Limited Company

This is a British type of business which is a separate legal entity from its managers.

Public Limited Company

The main difference between Public Limited Companies and Private Limited Companies is that their shares can be traded publicly.

Unlimited company

This type of UK company is not popular because investors are collectively and limitlessly responsible for business debt, which means that if business assets do not fulfil the obligations, they may be secured by personal assets.

Social enterprise

This is a UK type of business with the help of which you can invest all profits made to achieve charitable, social and environmental goals, instead of dividing them to investors.

Unincorporated association

An unincorporated association is non-registered, non-incorporated, and may include volunteer groups, small community associations and sports clubs.

Related posts

  • Business banking: Best banks and accounts for UK businesses
  • Business loans and funding options for UK businesses
  • Business blunders to avoid when starting a new business

Doing business is a test of character — doing business papers shouldn’t be. Osome helps entrepreneurs establish all the accounting online 24/7 via one cloud-based platform.

Related Posts

A series of work from home professionals performing an array of digital tasks to make money online
Start a business

The 5 key skills you need to make money in 2021

This year didn’t quite live up to expectations: a global pandemic, the deepest global recession since the Second World War, ...

Published by Anna McConachie
3rd January 2021
Camera lenses as an example of professional photography equipment
Start a business

5 Essential equipment for your commercial photography business

So you have decided to take your photography skills and branch out to create a commercial photography business. This is ...

Published by Editorial team
29th November 2020
Remote working person starting a business from a couch
Start a business

Starting a business remotely during lockdown

Lockdown has undoubtedly been tough for people in the UK, with jobs being lost and businesses going into bankruptcy. However, ...

Published by David Soffer
18th October 2020
A rocket coming out a laptop symbolising a new digital business
Start a business

Top 10 checklist for new entrepreneurs starting a business

Starting a business is a daunting prospect for any new entrepreneur. A common question is, where do you start? Fortunately, ...

Published by Elizabeth Williams
18th October 2020
Salon owner standing in her hair salon
Start a business

What entrepreneurs need to know about opening a salon

The Covid crisis may have made many people think twice about opening a salon. Forced closures meant that many salon ...

Published by Editorial team
27th September 2020
University students listening to a famous entrepreneur who started her business at university
Start a business

Five entrepreneurs who started at university

University is an essential place to gain the essential knowledge to walk into the best jobs on the market. For ...

Published by Editorial team
27th September 2020

About

  • Advertise with us
  • Subscribe
  • Privacy policy
  • Terms of use
  • Contact us

Sections

  • Finance
  • Insurance
  • Technology
  • Marketing
  • Human resources
  • Legal
  • eCommerce
  • Leadership
  • Procurement
  • Investing
  • News
  • Start a business
  • Buyer guides

  • Advertise with us
  • Buyer guides
  • Contact us
  • Cookie list
  • Datastorm notice
  • Finance & insurance
  • Home Alpha
  • Join the Entrepreneur Handbook community
  • Notifications error
  • Popular
  • Privacy & cookie policy
  • Products
  • Software & services
  • Start a business
  • Terms and conditions of use
  • Test page: superscript
  • Thanks for subscribing!

Copyright © 2013 - 2021 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, United Kingdom.

  • Finance
  • Insurance
  • Technology
  • Marketing
  • Human resources
  • Legal
  • eCommerce
  • Leadership
  • Procurement
  • Investing
  • Start a business
  • Buyer guides
  • Subscribe
  • Advertise with us
  • Privacy policy
  • Terms of use
  • Contact us

Copyright © 2013 - 2021 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, United Kingdom.