Many people think about starting up their own business at some stage in their lives. You may be one of these. You may have what you consider a great business idea which could be successful. However, there is much more to do before going ahead with formation of a company in UK. Factors which must be taken into consideration include the following:
- Funding your business – will you need to buy stock, rent office space and employ staff? All these can consume significant cash before you even get started, so you may well need to apply for a small business loan if you have insufficient personal funds. Allow plenty of time as this can be a lengthy process.
- Planning your business – a comprehensive business plan providing a clear vision for your business for the first year or so is vital, and will be essential if you are applying for funding.
- Market research – it is crucial to carry out thorough market research to confirm that there is a strong and enthusiastic market for your product(s)/service(s).
- Work/Life balance – if you have a family and home to support, you must think about how your new business will impact on your personal time and finances.
If and when you feel you are ready to start up your business, you must then decide on formation of a company in UK.
Most people choose limited company formation as this type of company is responsible for its own assets and debts, meaning that the owner will not be personally be at risk of losing their home or other assets. Although limited companies are the most popular type, there are also others which can be incorporated such as:
Ready Made and Aged Companies, Limited by Guarantee, Community Interest Companies, Charities, Limited Liability Partnerships, Flat Management, Right to Manage Companies and Public Limited Companies.
There are many UK company formation sites to be found online. Before deciding on one, you should check the various websites and see what they each offer. The most experienced and reputable ones will have all the information you need on their site, and also feedback from their customers. They will be registered with Companies House and will be able to efficiently and effectively incorporate a company on your behalf. You should have chosen a few possible company names. The formation company will check if any of these are available. All companies are required to have a unique name. Your chosen formation company will then check and electronically process all the official paperwork required regarding the new company. Most of these companies will offer a variety of packages ranging from basic to complete business packages, and will guide you to choose the pack best suited to your particular business requirements. The whole process will typically be completed within hours rather than days.
They will usually offer to set up a business bank account for you with one of the major banks.
If required, directors and a company secretary can be appointed during the formation process and a full range of post formation services including administration and information assistance will usually be available, if required.