Essential tips on starting a business in the UK – setting up a company
- TBA
- Sep 20, 2024
- 2 min read
Updated: Feb 25
Many of our clients have asked us – how do you set up a company in the UK?
Today, we’ll share some essential things for you to think about before you set up a company.
1. Company type
In the UK, most businesses fall into two categories:
Limited liability companies
Partnerships
If you establish a limited company, your company’s finances and your personal finances are kept separate. As the person in charge of the company, you are responsible for reporting and managing the company.
On the other hand, a partnership involves two or more people running the business together, sharing responsibility for all the business’s debts and liabilities.
2. Prerequisites
Before registering a company, you need to prepare a few things. Firstly, decide on a company name and check if there are any existing companies with the same or a similar name.
Secondly, determine the company’s address, which must be a residential or office address in the UK.
Thirdly, appoint a director. You’ll also need at least one shareholder, who can be an individual or a company.
Finally, define the scope of the company’s operations, with up to four areas of operation allowed for a UK company.
3. Getting started
Once these preparations are complete, you can start the process of registering your UK company. The company’s tax year usually begins twelve months after you complete the registration. It is the director’s responsibility to understand business and tax matters, including corporate tax, personal income tax, National Insurance contributions, VAT, and shareholder dividend tax, among others.
