United Kingdom
In order to start a business legally in the UK, you have to meet certain conditions and follow strict and thorough laws, rules and regulations. If you wish to set up a new business in the UK, you must observe various laws set in a different part of the UK (England, Wales, Scotland and Northern Ireland) and other rules. Some of these laws might be specific to a certain part of the UK so you would need to check within the sector-specific information for your business to see what applies to you and your business.
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The first step when it comes to starting a business in the UK is to download a business template aside from having an idea and the drive. The business template is not necessary but with the odds presented which are that you’re two and a half times more likely to get into business if you write a business plan, (according to outside sources) having a solid business plan on a template should be considered a necessity. A business plan template is useful to you if:
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You want to start a business.
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You own an established firm and are seeking help.
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You need to determine your objectives.
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You want to use it to raise funds to start your business.
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Using a business plan template is the best and quickest way to collate all the information you need to start a business. The process of completing a business plan template can help ensure the viability of your business proposition from the off, eliminates worries and questions such as: Does it work? Does the market already exist? Is there an appetite for the product or service you are proposing?
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If you’re wondering how to start a business, there are some key decisions you will need to make before starting up. As well as your product or service, you may want to choose your business’ name, its structure and how you are going to run it. It is also important to think about how you are going to attract customers and where you will get the money for starting up. You may need to research and develop your basic business idea, work out what you are going to name your business and decide on what form it will take. It is important to think carefully about your product or service, audience and what makes you stand out from the crowd. At this point, it is worth thinking about how you are going to finance your start-up and what effect it will have on your personal finances while waiting for profits to show.
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You should choose the right legal structure to suit your circumstances and register it with HM Revenue and Customs. HM Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.
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Should you choose the limited company route you are required to register with Companies House. You may need to seek specialist advice on intellectual property protection to cover copyright, trademarking, design registration or patenting. It is vital to keep accurate records and pay tax and National Insurance.
There is a multitude of companies that can be started in the UK such as:
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Public Limited Company (PLC)
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Private Company Limited by Shares (LTD)
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Company Limited by Guarantee
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Unlimited Company (UNLTD)
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Limited Liability Partnership (LLP)
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Community Interest Company
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Industrial and Provident Society (IPS)
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Royal Charter (RC)
… and many more. I will expand on two companies from this list down below.
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Private Company Limited by Shares (LTD)
A public company is a corporation whose ownership is open to the public. Anyone can buy shares in the company’s stocks. In contrast to a public company, a private company cannot be owned by any members of the public. It will instead be owned by an NGO (non-government organisation) or a relatively small number of shareholders, and the sale of company shares is handled privately.
However, these companies are limited, like PLCs, and this has the same implications for a private company as it does for a public company. Once again, an individual is only responsible for the business’s financial liabilities to the extent that they invested in the company.
Private limited companies are one of the most common types of companies.
Community Interest Company
This is a status that was created for companies that are not driven by the objective of maximising profits for their shareholders, but with the intention of using their assets and profits for the good of the communities that they’re in.
These companies are made to be easy to set up as they don’t require as many legal permits, regulations and less rules apply to them, and they run on the basis that any money they make is not distributed to shareholders but goes to improving the area around them.
Essentially, a Community Interest Company is a Social Enterprise. Many community interest companies will still put profits back into the company, but that will be done with the intention of improving the community services that they offer.