How to Register a Business in the UK: What You Need To Know
Are you wondering on how to register a business in UK? Registering a business in the UK is not as easy as it sounds. But if you are ready to take the challenge, keep reading for our simple tips.
Know the legal requirements of registering a business
You need to register a business if you intend to employ people or make commercial transactions.
- The first step to start a business is to register it with the Companies House.
- The second step is not so clear. Some people believe you need to pay something as you are not an actual owner of the business.
The truth is that you just need to pay the annual fees to Companies House. This is to avoid being fined for failing to register. The annual fees start from £80. If you are not sure how much you need to pay for registering the business, you can ask the banks for an estimate.
Some banks offer a discount on the annual fees. So if you are able to pay your business expenses in advance, this is also a good option. Do not make the mistake of charging for services you already receive free.
Step 1: Understand the process
The first step is to understand the type of business you are planning to register. Is it a sole trader or are you registering a business jointly? If your business is a sole trader, you can register it online through a simple website like this one.
To register a sole trader, you need to provide some of the basic information to the taxman. Information such as: name, address, date of birth, national insurance number, and your company’s date of incorporation are the basic documents that you need to provide.
These can be easily verified online through the official business registration site of HMRC. The next step is to fill in the online form in the registration section of HMRC. This form is different for different businesses.
Step 2: Choose where to register
When you want to register a business, it’s important to choose the place to register your business in UK. It’s a big task so you have to be a savvy entrepreneur in order to register a business with a state and local authority.
Remember to choose a place that is close to you. It is not always advisable to choose a place that is far away. However, you should consider the location of your office and the field of business you are running. Apply for a certificate of registration Once you choose a place to register a business, you have to apply for a certificate of registration.
The certificate of registration is a document you will be required to present to the local authority. The certificate is a legal document that confirms that you have a business operating in the UK.
Step 3: Get ready to register
If you are ready to go all out and register a UK business then be prepared for a little learning curve. Starting and running a business in the UK involves a great deal of effort and planning on your behalf.
Most startups will find it difficult to cope with the requirement of going through the process of registering their business and will usually take too long to accomplish the goal. Find the right broker A business broker can offer great value to their clients.
In fact, he is the professional who assists and guides a company through its registration process. Here are a few questions to help you make a decision. Will the business be UK based or have international scope? By choosing the right business broker you can be assured that your business registration is up to the mark.
Step 4: Ensure your company’s name is available
Check the Companies House website, to check that your company name is available for use. Finding an initial board of directors To make the process of setting up a business easier and cheaper, you can start off with some initial board members.
They can be easy to find on Linkedin or other social media websites. Most also require a minimum annual fee. Plan to choose your Directors very carefully.
Do you want a variety of opinions or just a few people? Also, do you want to have a board that you see yourself on more than once a year? Get to know the people working with you. Yes, it is possible to work with people you don’t know or trust.
However, you can often trust someone if you trust them to a point. The internet has made it easier to get to know people.
Step 5: Consider registering in more than one location
Registering in more than one location will allow you to diversify your business plan to avoid any mistakes. “While a business registration in one location provides you a first-rate database for compliance and transactional purposes, it’s important to spread your risk and maximize the value of your business by registering multiple locations, Run a pilot campaign A pilot campaign gives you a chance to check the performance of your service, audience feedback, pricing and geographical audience, etc.
Before you launch a full service to market, conduct a pilot to see how many customers it can generate. Use the time to build your feedback and build a loyal customer base.
Step 6: Financial considerations
Business registration in the UK starts with filing an application for approval and setting up small trade activities using a business bank account. Business registrars of the UK will verify your claims regarding the business registration. The approval process for UK registration has 3 phases.
- Phase one involves offering your business information to the Approved Party (AP) – the person or organisation in the UK authorised to act on your behalf as an owner or assignee of the business registration.
- Phase two is associated with the verification of information such as addresses, company particulars, relevant permits, tax details etc.
- Phase 3 is the day-to-day operations of your business under the approval of the Approved Party.
If you are planning to register a new business in UK, follow the above steps and get the job done today.