Starting a business in London is an exciting journey! Whether you’re opening a small shop, launching a tech startup, or expanding an international company, there are some key steps to follow to make sure your business is legal and ready for success.
Here’s a simple guide from a London solicitor to help you get started.
Step 1: Choose Your Business Type
The first decision is deciding what type of business you want to set up. Common options include:
Sole Trader:
You are the only owner and responsible for the business.
Simple to set up, but you’re personally liable for debts.
Partnership:
You share ownership and responsibilities with one or more partners.
Each partner is personally liable for the business.
Limited Company:
Your business is a separate legal entity.
You have limited liability, which means your personal finances are protected.
Step 2: Register Your Business
Once you’ve decided on your business type, you need to register it:
Sole Traders and Partnerships: Register with HM Revenue & Customs (HMRC) for self-assessment tax.
Limited Companies: Register with Companies House, which includes choosing a company name and filing key documents like your articles of association.
Step 3: Get the Right Licenses and Permits
Some businesses in London require special permissions. For example:
Food businesses need a food hygiene certificate.
Shops selling alcohol need a license.
Certain industries, like finance or construction, may need additional permits.
Check with your local council to make sure you have everything you need.
Step 4: Protect Your Business
It’s important to protect your business legally. This can include:
Drafting contracts: For employees, clients, or suppliers.
Getting insurance: For public liability, employers’ liability, or specific risks related to your business.
Trademarking your brand: To protect your business name and logo.
Step 5: Understand Your Taxes
All businesses must pay taxes, but the type and amount depend on your business structure. A solicitor or accountant can help you understand:
Corporation tax for limited companies.
VAT (Value Added Tax) if your turnover exceeds the threshold.
Income tax for sole traders and partnerships.
Step 6: Comply with Employment Laws
If you plan to hire employees, you must follow UK employment laws. This includes:
Providing written employment contracts.
Paying at least the minimum wage.
Ensuring safe working conditions.
Why Work with a London Solicitor?
Starting a business involves many legal steps, and a solicitor can make the process much easier. A solicitor can:
Help you choose the right business structure.
Draft and review contracts to protect your interests.
Ensure your business complies with all legal requirements.
Assist with trademarking, licenses, and disputes if needed.
How Canko Law Firm Can Help
At Canko Law Firm, we specialize in helping entrepreneurs and businesses in London. Whether you’re just starting or need legal advice as your business grows, we can guide you through every step.
Contact Us Today
Starting a business in London can be rewarding, but it’s important to get things right from the start. If you have questions or need legal support, contact Canko Law Firm today. Let us help you build a strong foundation for your business success!
