Setting up a Business in the United Kingdom (UK)
There are a couple of steps that you need to take when setting up your business in the UK. First, you will need to determine the type of business that you are going to be running. There are different requirements for the three different kinds; sole trader, limited corporation, or partnership. The second factor that you need to determine when establishing your business is the location. You can choose from a wide variety of options ranging from your home address to a virtual address.
Registering the Type of Business, You Want to Run
Each type of business has different rules and regulations, as well as benefits. A sole trader business is 100 percent attached to your personal accounts. The main benefit of this is that it is a very simple process to get started and your privacy is protected because the company is viewed as an extension of you, the owner.
The downside of a sole trader corporation is that the business is viewed as an extension of you, which means that your company’s debts are your debts. A partnership is where 2 or more people form a joint sole trader. This means that all of the company’s income is divided up between the partners along with all of the debt. A partnership is also a benefit over a sole trader because there are more people to do the work and more people to come up with ideas to help the business.
The downside of a sole trader corporation is that the business is viewed as an extension of you, which means that your company’s debts are your debts. A partnership is where 2 or more people form a joint sole trader. This means that all of the company’s income is divided up between the partners along with all of the debt. A partnership is also a benefit over a sole trader because there are more people to do the work and more people to come up with ideas to help the business.
The main benefit of a limited company is that it protects the individual if the business ever has financial troubles. Icon Offices provides a UK Limited (LTD) company formation service for one off of only £5.99 including VAT. On our last check this was the cheapest price being offered by any company formation service in the UK!
Where Your Business is Located
The majority of start up businesses start in the home and can grow from there. It is often viewed as being cheaper and simpler, but often it can be much more difficult than originally thought. To run a business from home may require the permission of the mortgage provider or landlord, local planning office, and the local council. Another option for choosing the location of your business is to use a virtual address.
This is the process of paying someone else to use their address as your own for shipping and mailing purposes. This can be extremely beneficial because you do not need to use your home address and you can maintain a degree of privacy for your business. Another positive of using a virtual business is that it can provide a prestigious location for your business without paying the exorbitant rent. Often virtual businesses will forward your mail or even scan and email your company mail. Remember you need a UK address to register a UK company.
This address is visible to the public. So always choose an address that compliments your business and does not breach your privacy. Icon Offices provides Virtual Address and Virtual Office Services from only £0.99 per week. Mail handling is included and we have a choice of 4 fantastic addresses to choose from.
A final option for obtaining an address is to rent a space for your business, but this will almost certainly lead to you increasing your outgoings. It does however allow the business to be in a more accessible location for customers and employees. We have 3 Business Centres spread over London and Essex that provide luxury serviced office accommodation at affordable rates. Prices start at only £475 + VAT for a 4 person office with internet and all bills included.