Setting up in the UK

British-entrepreneur-Rich-007There are a couple of practical things to consider and to know before you can register your business in the UK. Like we mentioned before you have to know what kind of legal structure your business will be like. Next to this you have to carefully consider the following things when registering your business in the UK:

As a sole trader

This is the easiest way to register a business in the UK. The only things you’ll need are a National Insurance Number (NI), your own name or business name and a registration for self-assessment. The latter means that you will have to calculate and pay your own taxes.

As a limited company

It is possible to set up a private ‘limited company’ in the UK. In order to do this you must have people who will run the company (directors) and register your business with the Companies House.

A director of such a company is also an employee, meaning that personal and business income will be separated when calculating and paying taxes. Requirements for setting up a limited company are: name and address for the company, registration with the Companies House, 1 director, 1 stakeholder, rules about running the company and you will have to setup your company for Corporation Tax.

As business partners

With this kind of structure you can run your business individually, but each and every partner will share responsibility for the company when it comes to taxes, loans or bankruptcy.

Just like with the sole traders, you will have to register for self-assessment (calculating and paying your own taxes), name your business and run the business as an individual. However, any profit made through the company or business must be shared between the partners.

Other

In some cases you may need a specific license to perform certain services or sell goods. Some business activities (like street parties) require a license which can be applied for right HERE.

Setting up a UK bank account is often a smart idea. Besides the fact that you’ll be able to actually receive any money you make, it is often cheaper and more efficient than overseas bank accounts. These often require extra fees in terms of transactions and currency rates. In order to open a UK bank account you will need a UK address.

Another important element of starting your own business is insurance. In some cases you may need to pay National Insurance, depending on how much you earn. If you have employees you will have to hold back National Insurance contributions from their loans. When earning more than £79,000,- a year you will have to register for VAT.