When setting up your business, it’s important to understand the legal process. It’s important to make sure you follow all of the rules and regulations that will help to avoid future problems with your business.
This article will cover specific steps that you need to take when doing this.
1) Develop A Business Plan
The first step when starting a business is developing a business plan; this is a must because it will give you an idea of how much money your business will need to get started. A business plan will help you set up financial records, encourage you to do market research, and help to get funding from other sources. It doesn’t necessarily need to be a massive document. If you do not need funding to start your business you may want to construct a one-page Business Model Canvas instead.
2) Name Your Business
After developing a business plan or canvas, the thing that you need to do is to name your business but be sure to give it a unique name. The name of your company is not necessarily the same as the name of your brand or product, as mentioned at https://sleek.com/sg/incorporation/. Although you will need to choose a unique name for the business that has not already been taken by another entity. There are also restrictions on the use of certain terms which imply authority that you may not have, such as Institute or Tribunal.
3) Register Your Business
Most businesses register as sole traders or limited companies.
Sole traders are the easiest option if you’re the only owner of a business. There’s no business registration, and keeping records is simple. The downside of sole traders is that you’re personally responsible for your business debts.
Limited companies are the most common type of company for professional firms or businesses that want more protection from being made personally liable if something goes wrong. It means the owner has limited liability and can’t be forced to pay back any debts with personal assets such as their home or car. For a step-by-step guide to register a business in the UK, learn how here.
4) Pay Taxes And National Insurance
The next step after you have registered your business is to register with the tax authorities to pay company and employer taxes and national insurance. These are needed in order for the government to support your business. All businesses must be registered with HM Revenue and Customs (HMRC) and pay any relevant taxes, even if they’re just the proprietor trading on their own. As part of this registration, you’ll need to complete a form called an IR6, which is where you tell HMRC about your business and how it will be taxed.
5) Get insurance
There are a lot of types of insurance that you need to consider getting as a business owner. For example, if you’re putting out an ad looking for new employees, it’s crucial that your business is insured in case any of those employees get injured while they’re doing their job on your company’s property. Employers are legally required to have employers’ liability insurance. Depending on the nature of your business you may also require additional insurances, such as professional indemnity if you provide advice. By law, you must also have insurance for any vehicles that the company owns.
6) Check If You Need Any Licences And Permits
Make sure you check if you need any licenses or permits to start your business. These are usually needed for specific industries like construction, entertainment, health care, and food services. Some of the most common licenses and permits are a business license, trademark, VAT registration number, and food safety certification.
7) Check What Your Responsibilities Are
Do you plan to run a business from home or office? If you plan to rent or buy an office, you’ll have to pay business rates to your local council. You can’t just avoid this by setting up a business in someone else’s office. Apart from that, you’ll also need to check what are the legal responsibilities of having an office, like making sure it meets fire safety standards or if there is enough disabled access.
You’ll also need to check what are your responsibilities as an employer. Some of the most important things that you need to do: register with the HMRC as an employer, make sure that your staff has at least national minimum wage, set up a pension scheme, and provide a safe working environment. Of course, there’s a lot more to it, but these are the most important requirements.
If you are considering opening up your own business, it is important to understand the legal process that must be followed in order for things to go smoothly. There are many steps involved, and some of them may seem daunting at first glance, but they will all help ensure that your company stays on track legally. This article has outlined how you can get started with your own business.