Opening a small business in London can be very attractive, both because the tax burden in the UK is quite low and also because the British bureaucracy is universally known for its streamlining.
For instance, in the UK it is not necessary to declare Value Added Tax up to £85,000 turnover; that is to say, if one does not exceed this threshold, one does not need to obtain a VAT Number and will be taxed at 19% of net profits. Should one exceed this limit in the tax year, it will be necessary to make a flat rate payment of 10% on the profit exceeding the imposed limit; then it will be necessary to regularise one’s position by registering the business for VAT.
It should also be considered that opening a company does not require a notary, in fact the procedure can be carried out online. Regardless of the bureaucratic simplicity of setting up a business in the UK, it is advisable to be assisted by an accountant with proven experience in the sector in order to avoid the risk of incurring penalties or fines.
An important tip: even if one’s business is small, it is crucial not to underestimate sound financial planning including an initial budget, operating costs, profit margin and expected cash flows. One must make sure that one has sufficient funds to cover the first months or years of operation, as it may take some time before satisfactory profits are achieved.
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The Registration Procedure and the choice of company type
The general procedure for opening a small business involves registration with the Company house. This registration can be carried out by logging on to the website, however, there are some basic requirements to be met, namely having a registered office in England and a real address, having a director resident in the UK, having an email address and telephone number in the UK and a company bank account. In the UK there are different types of companies, but when it comes to small ones, the most chosen form is Private Limited Company (LTD). Other possibilities for small companies are Limited Liability Partnership (LLP) and Unlimited Company. There is also the possibility of the Sole Trader, i.e., ‘individual entrepreneur’; in this case too, the bureaucratic process is rather streamlined and there are no activation costs, but the entrepreneur is personally liable for the debts incurred by the business.
Do not underestimate the promotional aspect
When opening a company, whether small or big, in London or in anywhere in the world, one of the most crucial aspects to consider is the promotion of the business.
in fact, if one wants the company to become profitable, it is important to make oneself known as much as possible; one can therefore activate the various online channels (company website, Facebook page, etc.) and also resort to effective offline media such as flyers and leaflets in various formats.
These media boast several benefits, including the fact that they are inexpensive, but very effective and can be printed in various formats. These media have several advantages in themselves, including the fact that they are inexpensive, but very effective and can be printed in different formats depending on the various requirements. For instance, the A7 format is ideal for distributing on the street, while larger formats (e.g., A4 and A5), as well as offering the possibility of including more information, are very suitable for being made available in various commercial establishments; depending on the case, formats such as DL or DL Maxi can also be used.
