Starting an IT company in the UK

The UK technology industry is valued at over 180 billion pounds.

22:48 10 December 2019

so you could say it is well worth setting up a company within this sector, if you have significant knowledge in this area. Starting your own business is an exciting prospect, but if you are not a resident of the UK, it is more difficult to start a business in the UK, than if you are a UK resident. Besides concluding on your business plans on how you hope to run your business in the UK, one other important thing to take note of is the visa type you will need to apply for that will give you the authorization to run your business in the UK. The two main visa types you would need to consider are: the start up and innovator visas.

These are the other steps you should take if you want to start up an IT company in the UK.

Check Immigration Status

The first step you need to take is to check your immigration status and ensure it allows you to set up a business. You will need a valid visa and residence permit to be able to legally set up your IT company in the UK. As it stands, EEA/EU nationals don’t require visas, although this may change after Brexit. If you are a non-EU/EFTA national, you will need to check your documentation and ensure you have a valid visa to allow you to set up a business in the UK.

Write a Business Plan

It is important to have a business plan in place, as this will keep your business sustainable and ensure it is viable. Business plans are also useful for applying for funding if you need it at some point in the future. It can help you research your market and forecast the future of your business. There are business plan templates you can use to make it easier to be able to compile one for your own business.

Business Status

There are different options available to you when starting up a new business. You can set up as a limited company, in which case you will need an accountant and your accounts will be visible. In legal terms, your business is seen as separate from you, whereas with sole trader status, you are liable, and your personal assets could be at risk if you end up acquiring loans or other debts. There are pluses and minuses to both options. Most companies start off as sole trader and become limited companies as the business expands. If you are planning on keeping the company with only one person working in it, it is probably best to keep it as a sole trader business. However, if you plan on hiring people into your ITbusiness, a limited company option may be the best. Another option is to go into a partnership with someone else, although you should be aware of the potential risks of doing this and ensure it is someone you can trust.

Business Name and Brand

One of the most important decisions you will make is to decide on a name for your business and to ensure you get the brand right. If you are struggling with designing your brand, it is worth getting an expert on board who knows about brands, as once this is fully formed, it can be difficult to back track with it. It is worth investing in your brand, as after all, this is what people will think of your business and what could help your IT business become a success.

Register your Business

You will also need to register your business with HMRC for both limited company and sole trader, and Companies House, if you are registering as a limited company. Registering your business is important as you will be liable for paying tax and you need to ensure you do this, as you could face heavy penalties if you fail to pay your tax.

Business Bank Account

It is a good idea to set up a business bank account, even if you are registering as a sole trader. It can be a good way to keep track of your payments and expenses etc, which makes it easier to fill out your tax return. If you are setting up as a limited company, you will usually be paying yourself a wage from your business earnings, and a separate account can keep everything structured. When you are starting up as a business owner, there are a lot of different aspects of the business you need to think about, and the less confusing you make this, the easier it will be to run your business efficiently.

Understanding Expenses

As you are running your own business, you are entitled to claim back expenses on certain items. It is important to be aware of this as you could miss out if you don’t claim back. This may include travel, networking events and day to day running costs associated with the businesses.

Fees and Other Costs

 

The way you choose to charge will depend on how you wish to operate your business. For example, you may work as a freelancer from home on projects for clients, or you may be prepared to work as a contractor on site for various durations. You will need to determine how you work and what fees you will charge. For example, you may charge an hourly rate, day rate or it may be a project-based fee. It is important to understand your fees before you get started with your IT business, as clients will expect you to tell them what you charge. Just make sure it’s affordable for you, even if you are just starting out. You need to take your rate into account, as well as any other additional charges, including travel costs etc.

Marketing Plan

Do you know how you will get your clients? You might have some contacts from previous jobs, but you also need to develop a marketing plan to ensure the work keeps coming in. The good part of setting up an IT company is that it is something which is always needed and if you get your marketing plan right, you should always have work flowing. Your marketing plan might include social media, networking events, previous customers and if you have no understanding of this, it may be worth getting some help from a marketing expert. There may be a need for you to obtain a Tier 1 entrepreneur visa extension if you already own a Tier 1 Visa. If this is your case, then get in touch with Immigration solicitors London.