In the UK, starting a business is relatively easy. Anybody, over the age of 16, who isn't an undischarged bankrupt, can register a limited company at the Companies House and start trading-in as little as three hours. He or she can also register as self-employed and start trading as soon as the paperwork is filled. However, in practice, it takes more to start a business.
Starting to trade
Registering a business is easy, but a business bank account is essentially needed. Moreover, some types of business also require a business insurance in the UK. How to set up a business To register as self employed, one needs to head to the HMRC website and state the intention of becoming a sole trader. This means that the payment of NI and other types of tax will start, depending on the revenue and personal circumstances. To start a limited company, there is a need to register it at the Companies House. Even a third party company registration agent can do the work. This is often easier and comes with added benefits, such as the fast-track business bank accounts. Banking A business bank account is the best way of keeping the personal and business finances separate and avoid problems with the tax man. There are some banks offering specialist bank accounts for small business. So, it's worth doing research and even talking with the bank advisor before setting up the small business officially. Insurance Not all small businesses need insurance, but it's often advisable to at least consider the minimal cover. There are specialist home business insurance packages available, and the bank may require people to take on new business insurances, prior to opening a line of credit for the new company.
Optional things to do
A home business can be started easily, without any sort of capital, but financing often makes starting-up much easier. People can think of a website, as a cheap and effective way of marketing the company. Business loans in the UK If one is starting a company, he or she may find that accessing financing for a new business is slow and highly dependent on the personal credit story and assets. If one is asking for a loan to buy a small business that is already profitable, or to start a franchise, it may be easier to find a loan. Going online A website is a cheap way of advertising the newly created company and reaching new clients. Creating a business site doesn't need to be difficult or expensive. There are many free alternatives which offer professional levels of service, despite the fact that they are limited.