The formation of a company in the United Kingdom is not a difficult process if you are prepared for all costs involved. As long as you are aware of the financial requirements, then at least you can concentrate on selling your product or service. Detailed below are some main factors that need to be considered during that initial start-up process.

Business Registration / Licensing – Initially, to set up a business in the U.K, you need to register the company name with Company House. The registration process requires forms and documents to be submitted and a one-off fee of either £20 or £50 for a same-day registration service. Any licenses or certifications need to also be considered if they are required for the products or services you are supplying.

Tangible And Intangible Items – It is also very important to consider exactly how much it will cost you to physically set up your company. Will you be trading solely online, or within a bricks and mortar type shop in a high street? With an online shop or service, you need to find out the costs of things such as computers, printers, web-domain/server registration costs, stock and web design. Concerning a ‘bricks and mortar’ shop, there are many more costs involved; these costs will range from shop fitting, telephone/internet service set-up, safety features such as fire extinguishers and CCTV, stock, cash registers, and lighting.

Overheads – Depending on the type of business you will be forming, overheads will play a major role in the amount of profit that you can possibly make trading. You must bear in mind, and include in predicted accounts, the costs of electrical use, water, internet and telephone bills, and, of course, rent or mortgage (unless you purchase the real estate in which you trade).

Marketing – Marketing costs vary greatly depending on the medium that you are looking to utilize. Whereas leaflets, for example, are cheap to print, they are also much less effective than, for example, newspaper or magazine advertisements. When forming a company, it is important for most business types to let the public know you exist. Word of mouth can work in some situations but not all, and certainly not if you are looking to greatly increase your exposure in a short space of time.

Other costs that you must consider are legal and accountancy costs, staff salaries, merchant banking and tax. Though be aware that many start-up businesses in the U.K are eligible for government grants, helping you survive through the first few months of trading.

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