How to open a company in the UK
I have recently written what is a company in England. In the articles there are links to government sites where you can start a business online. To open a business in the UK you should go to the website by clicking on this link: www.gov.uk/new-business-register-for-tax
Therefore, today I will explain step by step how to fill out online forms. Firstly, if you are planning the establishment of your first company in the UK, you will have an easily access guide and secondly in the end I managed to realize one of my goals and set up a company in the UK, so I decided to prepare a very easy tutorial so that everyone was able to set up company in the UK.
You should remember that in England we don’t have to register companies, but only to inform HMRC to pay registration tax. If I remember correctly the last government introduced a new law that you do not have to establish the company to £ 1,000. But I'm not sure of that. So it will be nice if someone confirm or deny this. However, this is associated with the sale, for example, on eBay or renting a room and so on.
How to start a business in the UK step by step UK
You must go to this page: https://www.gov.uk/new-business-register-for-tax
If you do not have an account called Goverment Gateway is a need to open it. In this particular case, this is the Individual type account
If you go through the process of registration, you should log on to the page, then enter the code sent to your mobile phone and press the button „find a tax, duty or scheme. Then select Self Assessment, Including partnerships and trust. On the next page you can choose from:
- Individual oraz sole trader
Select the first position in the case of one-man company. On the next page, you have two choices.
- I want to tell HMRC that I am in business and need to register for a new tax or tell HMRC that the company is now active
- I want to sign up to use the online service for a tax for which the business is already registered
So in the first case you inform HMRC that you want to register a company in order to pay the tax and the second case, if you want to use the online service. This applies to people who already have a company.
On the next page there is information on the types of companies that can take advantage of this form. You should press the button „Next”. On the next page there is another information about companies that cannot take advantage of this online form. Press the button „NEXT”..
On the last page you can see the note that you must be registered in the Government Gateway, and that you cannot open another company with the same name.
On the next page, select the Self Assessment (Including Class 2 National Insurance contributions) as it is indicated below on the photo
Then, HMRC wants to know what type of business you want to open. In your case, if you still want to open a one-man company it will be self-employed / Sole trader / Sole proprietor.
On the next page you must indicate the date of since we have a company. And exactly you should write of since you operate. In the UK, you must only inform HMRC from when you started.
After pressing „NEXT” there will be an information page about what should be prepared to be able to open a company in the UK.
- NIN (National Insurance Number)
- your personal details and your company
And at this point, the first stage in the opening of our first company in the UK was completed. To complete the form you should give: personal information, home address, business address etc.
In that form you should give the usual data that everyone knows. So as you can see in the picture below. The novelty for some may be a UTR (Unique Taxpayer Reference). If you receive the settlement for the previous year, you will find this number in correspondence with HMRC. If you do not have it, you can call the hotline and ask.
What is UTR
On UTR you can read yourself at this address: www.gov.uk/find-lost-utr-number
as it is highlighted on the website, UTR should be in the correspondence from HMRC. If you do not have such correspondence, simply call the Self Assessment Helpline (0300 200 3310)
And on the next pages you should give the name, email, phone just like on the pictures below
Should you start a business if you perform services for one company?
Also, the question which at the end of the form is also very important:
Are you working for one person or company only? In this case, I pointed NO because if you work for one person or company it may be that instead of the company you should be hired and HMRC can check whether we should be employed on the basis of an employment contract and that we shouldn’t act as a company.
Then you should give the date and type of commencement of the business.
What is the virtual office
Another very important information is the address of the company. You can give a home or other so-called company address. I personally became interested in the so-called virtual offices. In England, this business is quite popular for this reason that LTD companies are required to give a different address than the home address. The market is full of companies offering this type of services ranging from simple to complex services including accounting.
It just so happens that in the future I’m planning to establish LTD company (this is the natural way), therefore I have already checked, where to set up a virtual office.
Luckily for me there is an accounting office close to where I live, which runs just this type of service. In my spare time I drove, talked and realized that the virtual office has a physical base and it is not so-called „letterbox companies”.
Honestly, now I overtake some steps, but I like to go always one step further to be able to “push” my projects forward.
If you also want to open a virtual office or if you are looking for information on LTD companies, relocation of Polish to the UK or just you are looking for accounting office, click on this linkk: aeXea
The office belongs to Marek Niedźwiedź and some people in the industry can probably know him. I have some plans for my company, therefore home address won’t be good and address Unit 4E, Enterprise Court, Farfield Park looks much better in the business world
How to start a business in the UK
Coming back to the rest of the form, as you give a business address or when you mark that the address of the business is the same as the address of the home you will have the option to enter phone numbers: home and business number, but it's probably obvious.
It is worth noting that the company name can be a big problem. More on politics of the selection of company’s name you will learn from this link: www.gov.uk/choose-company-name. It is interesting that the name of the company can only consist of your name.
And as all things are filled, you will get comprehensive summary as below:
At the end you must sign declarations online and get your unique number called Acknowledgment number which will mean that the form has been completed and sent to check.
I'm finally an entrepreneur and I start to build my portfolio in accordance with the recommendations in books that will generate revenue and will bring me to my goal which is to become a renter at the age of 55. And why the opening of the company is so important? I can now legally provide various services, optimize taxes and open up new opportunities. I hope that the guide on how to open a business in the UK will help you. Everything above was made personally by me.
NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.
Hey! My name is Radek and I work hard in England everyday and the thought that I will be able to retire after 68 years is not in my favor. That is why I will prove that it is possible at the age of 55 or maybe earlier. See on this blog how I want to achieve this.