If you wish to start a business in UK, you will be required to do so under the Trade Association of Small Business. The TASC has over 900 members from all walks of life in the UK including accountants, solicitors, cafe operators and even cleaners. The aim of this organization is to promote small businesses in the UK and assist them in taking their first steps. This introductory article covers the 8 basic steps to start a business in UK.
There are some important conditions to fulfill before starting a small business in UK. The company must be registered with Companies House; the company secretary must be an active member of the trade body; the company must be able to demonstrate it has the financial and technical resources to carry on the business as proposed; and the company must have been in operation for a minimum of one year. These requirements are necessary to ensure UK trade law and UK tax law is complied with when starting a business in UK.
After meeting these conditions, you can now start looking at the different options available. Two of the popular options that many start up companies opt for are being registered with a tier one supplier and going with direct sales. Both options have their pros and cons. For more information see link below.
One of the most common routes taken by start up UK businesses looking to take advantage of the new rules on trading from the EU is to go with a supplier with a local presence. For example, many companies in the Low Countries have an office in Manchester or Liverpool. Similarly, many companies based in and around the UK have an office or a manufacturing unit in their home country. The advantages of having a local supplier include the ability to be flexible with orders and shipment times, lower overheads for the company and a reduction in import taxes. Many small business owners choose to purchase goods from these sources rather than sourcing them domestically, which allows them to avoid paying taxes on goods purchased.
Another route taken by start up UK businesses looking to start trading in the UK is to go with direct sales. This requires the company to market and sell goods directly to customers. It is important to remember that this type of setup does not offer the same tax benefits that sourcing products from a local supplier would offer. These steps are necessary steps to follow if you want to start a business in UK, regardless of whether you are self-employed or part of a larger business that requires the use of a UK company formation.
As a business startup looking to trade in the UK, you need to decide how you intend on selling your goods or services. If you intend to sell online, you may find that your best option is to use an e-commerce website. By setting up a company, you will have the opportunity to display your goods or services on a web page which can then be accessed by clients all over the UK via the internet. The advantages of setting up a business like this include the fact that you do not have to pay taxes on the income gained, there are no licensing fees and you have access to a worldwide customer base. You are not restricted to using the English language when communicating with customers outside the UK. This means that you can expand your client base, reach a wider audience and increase sales.
If your business focuses more on the supply chain of a particular product like mobile phones, drones etc, you should look to establish a distribution company. Distribution services can include stocking, packing and distributing goods to retailers, as well as procuring space for storage. Distribution services can also be used to ship goods between manufacturers and importers, and involve tasks such as physically loading and unloading cargo. A limited company can have all of these services provided for it, or you can provide all of them on your own.
When setting up a business in UK, the actions mentioned above are only a few of the many you will need to take. There are other issues, including registering office and dealing with VAT, but those are the basics. If you are unsure about any of these steps, seeking professional advice from a Citizens Advice Bureau can be a great way to start. This kind of independent advice can help you to understand what is required to set up a limited company, and if you are unsure about any of the steps for establishing one, they can give you the best advice and show you how to avoid common mistakes.