Business Registration Process
Business can be registered as a limited company, a joint partnership with another business or working individually as a sole trader.
Working as an Individual (sole trader)
The simplest way to register business is by the means of a sole trader. Along with some important tasks on maintaining accounts, one is personally responsible for the debts in business.
Register business as a limited company
In contrast to the financial working involved in a limited company and as a sole trader, it has separate finances. Moreover, you have to abide by laws of accounting that define reporting and administration responsibilities.
Since this working can be tough for you to handle within the company, help from professional accountants can be hired to do the job.
Having to register business shared between two or more people, partnership defines it very simply. This type of business has shared responsibility for the business?s debts along with accounting obligation.
In consideration of the type of business you have registered, there might be other obligations as well. There are certain things that you need to check such as licenses to play music in the premises, permits to sell goods or advertise on streets. Insurance is another important aspect that needs to be addressed.
Adding to the above, there are rules that need to adhere if you plan to:
- Sell your products over the internet
- Import/Export goods
- Keep personal data or use it
Location of business
Where you register business, it brings up additional responsibilities. You need to confirm what obligations there are if you set up your business at home or rent a property to do so.
There are no business rates if you set up at home but these do rates apply if you rent a property. Business rates can vary from paying nothing to paying an amount depending upon the size of business. If you own a small business, you can also apply for discounted business rates.
Nature of the location may allow you to claim the following as expenses:
In cases where you register business and hire employees to work, you will have responsibilities towards these employees such as their safety, health, etc.
Role as an employer
In addition to the tasks or responsibilities that the business has, hiring employees opens up a new chapter of responsibilities. You will be inclined to make sure specific things are taken into consideration. These list down with the most basic tasks of all, that is, keeping a payroll. Secondly, national insurance for all employees must be paid but to reduce expenses, it can be claimed as an allowance.
Lastly, you will need to have workplace pensions for employees who fulfill the eligibility criteria.