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Procedure to set up or start a business in London?
There is a range of various business types in London, and you’ll need to choose the choice that most closely fits your company’s structure.
Depending on the kind of your business, where you work, and whether or not you employ additional staff, the steps you need to do to get started can vary.
Following is the procedure to set up a business in the London
- To begin a business, you’ll need to confirm that your immigration status permits you to do so. As a non-EU/EFTA national, this may require that you obtain a visa and residency permit.
- Entrepreneurs in the United Kingdom must have a business strategy in place before they can move forward. Determine whether or not your business ideas are likely to succeed and be sustainable.
- You should select a business structure that best reflects your company.
- Decide the business name and address.
- For tax purposes, you will need to register your business in the United Kingdom with HMRC. Companies House requires limited companies to pay a fee of either £12 (online) or £40 (offline) to register (by mail).
- These additional requirements can be necessary for your UK firm, depending on its nature: licenses or permits, for example, to play music, sell food, or trade in the street
insurance
Where to register?
- You need to register with the local authority.
What type of business you can register?
- Sole trader
- Limited companies
- Partnership
Sole traders
It’s easier to start a business as a sole trader, but you’ll have to pay for your business’s debts yourself. You also have to do some accounting work.
After you pay taxes on your business’s profits, you can keep all of them. You’re on the hook for any money your business loses. There are also rules about how to run your business and what to call it.
Limited companies
To keep your personal funds separate, you can set up a limited company, but you’ll be saddled with additional reporting and management duties.
It is a firm “limited by shares” or “limited by guarantee” that is considered a limited corporation.
Limited by shares
These are usually business which is carried out to make a profit which means:
- Is legally separate from the people who run it
- has separate finances from your personal ones
- has shares and shareholders
- can keep any profits it makes after paying tax
Limited by guarantee
These are usually businesses not for profit which means:
- is legally separate from the people who run it
- has separate finances from your personal ones
- has guarantors and a ‘guaranteed amount’
- invests profits it makes back into the company
Partnership
Two or more people can form a partnership in order to run a business.
Your business’s success is jointly owned by you and your partner (or partners). Included here are:
- any losses your business makes
- bills for things you buy for your business, like stock or equipment
Taxes are paid on each partner’s portion of the business’s profits.
- An actual human being is not required to serve as your partner. When it comes to partnership, limited liability companies (LLCs) are counted as “legal persons.”
To set up a partnership:
- Select a name
- Select a nominated partner
- register with HM Revenue and Customs (HMRC)
- As the ‘nominated partner,’ you’re in charge of the partnership’s tax returns and bookkeeping.
