How to Set Up a Business in the UK
When you're setting up a business in the UK, you will first have to choose a type of structure for your business. The most common types are sole traders, an ltd company, and partnerships. If you're looking at being a sole trader, you have to register as self-employed. What this means is that you are working for yourself and not for some other company.
In most instances, if you wish to establish a business in the country, you'll have to live in the UK, too. Provided you're setting up a business that's a private limited company, you likewise will need a registered office and one director (at least) in the UK.
Registration for Sole Trader
Obviously, one of the most important "initial" things to do is register your company. The easiest and most convenient way to start a business is to become a sole trader. You own the business and no one else. Likewise, you get to choose to work along or perhaps employ a bunch of people to help you out. The first thing you need to register is the self-assessment tax. This is the way you calculate your own tax. As a sole trader, you need to have the following:
- National Insurance number
- Trade under your name or you may choose a specific business name
- Register for self-assessment with HM Revenue and Customs
For ltd company registration, you will have to appoint individuals who will be running the company. Most of the time, they're called as directors. You also have to register the limited company with Companies House. Being one of the directors of the company, you officially become an employee, too. What it suggests is that your personal income and the company's business income will be considered as separated when it comes to paying taxes later on.
Regarding with forming a limited company, you will have to:
- Have a unique name and address for the company.
- Register with Companies House
- Have at least one shareholder and one director
- Produce an "articles of association" containing the list of rules in running the company
- Set up your business/company for corporation tax
For a business partnership type of company meanwhile, you will be operating a business as an individual. However, all your partners will share responsibility for the business. In registering for a business partnership, you have to:
- Name your business based on a specific set of rules
- Run the business as an individual
- Register for self-assessment with HMRC
- Share the profits between partners
Read about an Umbrella company here at https://en.wikipedia.org/wiki/Umbrella_company.