How do I start my business?
Setting up a business in the UK is quick and easy.
You can nevertheless call on a tax and accounting specialist for personalized advice.
- You do not have to declare yourself for VAT as long as your turnover (turnover) is less than £85,000.
As soon as you exceed this threshold, the declaration becomes mandatory.
- You pay no tax for 21 months after setting up your business.
- You do not have to declare yourself as independent.
- All actions and modifications related to the creation of a company are digitized.
Starting a business from Europe
It is possible for a European resident to open a business in Great Britain from their country. They enjoy the same rights as an English resident.
If you do not have an office, you can register your company with a provider that offers this service.
Type of company
Depending on your project, you must choose a type of business:
- Sole Trader: it is the simplest form that requires the least formalities: declaration of the start of activity to HMRC and income declarations at each end exercise.
- Limited Liability Partnership: 2 or more people join together for the purpose of working together. Everyone will have to pay taxes in proportion to the percentage of the profits they receive.
- Limited Company: a director, a shareholder and a minimum capital of £1 are required to create the company. The liability of shareholders is limited to their contribution. The profit can be redistributed in the form of dividends.
You will need to choose a name compliant with standards so that it can be validated by the registry.
Documents necessary for setting up a business
The documents needed to start a business in the UK are:
- The name of the company.
- A physical address in the UK.
- Details of the distribution of capital within the company.
- The personal information of the director of the company - and if necessary that of the secretary (Company secretary).
- The personal information of the shareholder (s) of the company.
Memorandum and Articles of Association
The Memorandum and the Articles of Association are the documents which allow the incorporation of the company in an official manner:
- Memorandum: document including a series of standard articles by which shareholders confirm their desire to create the company.
- Articles of Association: document presenting all the rules and standards of the company, defining how the latter will be managed in the interests of shareholders.
You will be provided with a registration number once the company is created.
UK law requires companies to establish and maintain the following registers:
- Register of directors
- Director's Address Register
- Secretary's register (if you have one)
- Membership register
- Share register