Business

Do You Have What It Takes to Build a Startup in the UK?

Do You Have What It Takes to Build a Startup in the UK?

Does the entrepreneur dream attract you to start something of your own? Do you wish to build a startup in the UK and kickstart your own business but are not really sure how to get started? Stepping out on a voyage to start your own business can be a rather daunting prospect, especially if you are thinking of doing it in the UK. There are a lot of T’s to cross, and a lot of I’s to dot, which means that it is easy to lose sight of some of the minute but essential details. That said, with the right kind of help, creating your very own startup can be a breeze.

Here we have for you the five fundamental steps that can help you cement a good foundation for your startup in the UK and be in business in no time at all!

1. Register Your Business

The very first step to begin is to register your business as an LTD company via Companies House and let the queen know about the existence of your company. A few important things to remember when filling in the fields is your address for starters. Remember that although it might be boring, it is perfectly alright to work from home as you will be able to save a good chunk of money in the beginning. Alternatively, you can also find an affordable co-working space to get started. Also, ensure that you register an address which is convenient for you because that is where you will receive all your mail posts. Moreover, the initial sum for registering your company is merely £100 in the application fee.

2. Get A Fresh Bank Account

The next step is to open a bank account for your company. If you choose high street banks to do that, you might feel burdened at first as bank managers usually tend to ask a plethora of questions such as the directors, the nature of the business, the investment and funding, etc. In addition to that, if you happen to mention the word “crowdfunding” in regards to your company, they are likely to give you the red flag because of money laundering issues. Therefore, keep thing simple by saying that only you and your business partners will be funding the business.

3. Get SEIS Approval

Another essential thing to keep in mind is to stay attractive to future investors in the industry. The Seed Enterprise Investment Scheme or SEIS approval can go a long way to starting things right for your business. This scheme has been designed to assist early-stage and small companies in raising equity finance by way of providing tax reliefs to investors who buy new shares in these companies. Therefore, you must ensure that you are eligible for this scheme so that you can attract new investors to your business. Some eligibility criteria include a company that has been established in the UK, carries out a brand-new qualifying trade, does not control any other company unless it is a qualifying subsidiary.

4. Get Yourself A Reliable Accountant

Another vital thing to remember is that your accountant is going to turn into your best friend while your company grows. Starting a new company means taking on a lot of accountancy tasks as well and if you do not have an efficient and well-aware accountant or accountancy firm handling your company’s finances, well then, you never really had a chance at all. Therefore, the first step is to hire an accountancy firm that is dedicated to helping startups and knows all the ins and outs of the trade. This will be key to ensuring that you comply with all the legal norms and that your company is legit at all times.

5. Be Clear on The Taxation Norms

Finally, it is crucial to know that HMRC is the UK government’s tax department. You must register for Corporation Tax when restarting a dormant business or beginning to trade for the first time. You are allowed three months to register your business with HMRC. Although you do not need to start worrying about the tax-related tasks immediately, it is always a good idea to stay ahead of the curve and know all about them beforehand. Again, getting the right accountants in your corner will help you a great deal as they are aware of all the updates and modifications to the rules and hence, can help you with your yearly taxes as well.

Avail the Expertise of DNS Accountants

If you are still struggling with finding your foothold on the entire startup scenario, how about you get in touch with DNS Accountants? With a team of professionals and experts, we help startups find their own place in the competitive market with the help of some enviable accountancy services. Contact us today, and you will never have to look back!

About the Author:

Sumit Agarwal
, A specialist accountant and tax adviser for freelancers, contractors and small businesses since 2005, He is an expert in business growth and development strategies. A renowned tax expert for owner managed businesses and contractors, He won the British Business Forum’s Young Entrepreneur Award in September 2012, presented at the House of Commons by MP Vrinder Sharma.