Guide To Setting Up Your Business

333 000 000 Guide To Setting Up Your Business TYPES OF COMPANIES There must be at least 1 'Director' to run the company. You need to register the company in order to get a "Certificate of Incorporation' which shows the company date of formation, company When you register you must make a 'statement of capital - this is the number of shares the company has and their total value, and the name and addresses of all shareholders. PRIVATE LIMITED COMPANY number, and proves the company legally exists. There were an estimated 4.9 million private sector businesses in the UK at the start of 2013, the highest estimate since 2000. A sole trader runs their own business as an individual, also known as being 'self-employed'. This means you can keep all the company profits after you've paid tax on them. Sole Traders must register You must register for Self Assessment with HMRC as with HM Revenue & soon as possible after starting your business. Customs (HMRC). SOLE TRADER You need to register the company in order to get a "Certificate of Incorporation' which shows the company date of formation, company number, and proves the company legally exists. Being a sole trader doesn't mean you have to work independently, you can still employ staff, it just means you are responsible for the company. There were 127,000 more non-employing businesses in 2013 than at the start of 2012. When you register for Self Assessment you need to choose a 'nominated partner'. This is the business partner who is responsible for keeping business records and managing the partnerships A business partnership and individual partners must register for a Self Assessment with HMRC and follow certain rules for running and naming the business partnership. tax returns. Business partners are responsible for any business debts, bills, sending personal Self Assessment tax return In a business partnership, you are running a self-employed business, but all the business partners share the responsibility. This means you can share profits and each partner pays tax on their share of the profits. BUSINESS PARTNERSHIP annually, paying income tax on your share of the profits, paying NI, and the nominated partner must send the partnership's tax return. Business partnerships represented 11.2% of total enterprises in 2013, down 0.7% from the previous year. FACTORS TO CONSIDER 3. VALUE-ADDED TAX (VAT) BANK NATIONAL EMPLOYING FINANCE & ACCOUNT INSURANCE STAFF SUPPORT Open a new business bank You will have to pay national insurance You must pay the national minimum wage & have a contract of employment with leasing equipment & You must register Opportunities include government for VAT with HMRC & EU grants, loans, overdrafts, shares, account or use an if you're self- employed & earn if your business turns over more existing one. over a certain than £81,000. amount. your staff that states invoice financing. the employment conditions, rights, responsibilities and duties. PHYSICAL VS. ONLINE BUSINESS PHYSICAL BUSINESS The ideal business premises will prevent you from paying unnecessary costs and will cater to your business needs. Firstly need to consider your business needs and what you can afford. O Working from home can be much cheaper than renting an office space. List what it is that you need from your premises, and what is essential. SHOP O Choosing the right location will have an impact on customers and staff. Consider car parking and local transport. O Size and layout of the building and office - little space will limit the chances of growing the business in the future. Check if the facilities are good enough for employees or if there are any special requirements needed. FOR SALE FOR RENT BUYING RENTING O To buy a premises means there'll be expenses such as - purchase price, maintenance and repairs, solicitors fees, building surveys, stamp duty. O Most businesses choose to rent because it's easier, cheaper and more flexible. You can agree the conditions of the business lease in advance, and you are usually well protected legally. O You will also need a commercial mortgage and find a 15% deposit to qualify for the mortgage. Consider that you'll likely be in charge of maintaining and repairing the building. You might not be able to change any interior layout and your rent may at some point increase. O You'll own the property meaning you can stay there as long as you like, change the layout and decorate it how you wish. O To rent you'll have to pay a premium to buy the lease. Commercial leases usually run for a minimum of 15 years, so choose your premises wisely. WHETHER BUYING OR RENTING... Always check all legal terms, such as hidden clauses, obligations or costs. Use a commercial property solicitor to check through your lease or mortgage. Consider the costs of equipment such as IT, stationary, vehicles, furniture and paying a removals company to move you into the premises. ONLINE BUSINESS It is estimated that by 2020, 90% of all transactions will take place online. O With any business it is important to make a business plan, complete market research, identifying audience, assessing the demand and competition. O You must register for VAT if your sales are likely to exceed the annual threshold of £79,000. O Online traders have to take into consideration the Data Protection Legislation when storing important information about customers. O Creating your own website will save you money, but if you want the most professional profile possible you can pay a web designer to design one for you, which will cost around £2000 for design, domain name registration, and the arrangement of hosting of your site by an internet provider. MOST SUCCESSFUL STARTUP INDUSTRIES KEY A.R.G. - Annual Revenue Growth A.E.G. - Annual Enterprise Growth PROFIT 60% MARGIN PROFIT PROFI 17% MARGIN 23% MARGIN PROFIT PROFIT PROFIT 7% (16% PROFIT (11% MARGIN 5% MARGIN MARGINARGIN SOURCES Infographic brought to you by www.ons.gov.uk www.gov.uk/browse/business/setting-up www.startupdonut.co.uk/startup/set-up-a-business/ www.forbes.com/pictures/efgg45kmfg/ scientific-economic-consulting/ dir accountants www.DLRACCOUNTANTS.COM >>>> 3333 ONLINE SURVEY SOFTWARE STREET VENDORS A.R.G. (2011-2016): 9.6% A.E.G. (2011-2016): 2.8% Barriers to Entry: Lov Capital tensity: High INTERNE T BROADCAING & CASTING PUBL A.R.G. (2011-2016): 3.7% A.E.G. (2011-2016): 3.8% Barriers to Entry: Low Capital intensity: Medium SOCIAL DEVORK GAME PMENT A.R.G. (2011-201 9.9% E.G. (2011-2016): 4.3% Barriers to Entry: Low Capital Intensity: High SCIENTIFIC & ECONOMIC SERVICES A.R.G. (2011-2016): 24.4% E.G. (2011-2016): 24.6% Barriers to Entry: Capital Intensity: Medium E-COMMERCE' ONLINE AUCTI A.R.G. (2011-2016): 3.8% A.E.G. (2011-2016): 2.1% Barriers to Entry: I Capital dium nsity: Low PORA WELLNESSRPORS A.R.G. (2011-2016): 9.6% ): 2.4% dedium .201edi A.E.G. Barriers to Ene Low Capital Intensit A.R.G. (2011-20 : 9.8% A.E.G. (2011-2010 8.7% Barriers to Entry dium Capital Intensity: Low