What are Essential Legal Requirements to Start Business in the UK?

 Founding a start-up is indeed an overwhelming yet exciting experience. But when you are starting a new business in the UK, it is one hell of an adventurous ride. Indeed it is going to be a busy time for you. Being an entrepreneur, you will develop business and marketing plans, put your financial plans in order, and possibly seek investment and funding. Amidst all these business chores, don’t just forget about the legal considerations that must be taken care of. If you fail to do so, it can result in costly legal issues.

It has been estimated that around 43% of small businesses are threatened with lawsuits in the UK every year. Out of which, 18% are because of employment legal issues. But they can be avoided with some foresight and employment law solicitors. When starting any sort of business, it is important to seek legal guidance and start on the right track. 

In this blog, we will guide you through the essential legal requirements for startups in the UK. It not only helps you in removing nervousness in the business world but also helps you to legally set up your business without any worries. Let’s dive in.

Business Name

Choosing a business name is indeed a daunting task. But it becomes more important to pay more attention to the name when you want to avoid unnecessary legal compliances. Business owners need to choose a unique name for their business that is not being already used and doesn’t hurt the sentiments of other companies. If the name is similar to another business or company, it can suggest that you are trying to pass off their company as yours and take business from them. It can further result in legal complications such as trademark infringement. You can easily check the name availability and avoid any complications.

Legal Status of Business

After successfully establishing a new business in the UK, entrepreneurs need to register their business with the UK’s Registrar of Companies. It further impacts the documents and records you need to maintain for the legal purpose of a company, amount of tax and National Insurance you have to pay, and financial liability if applicable. The most common types of legal business structures include sole trader, partnership, and limited company. If you want to know more about the legal status of your startup firm, you can always connect to Legateca and take legal advice for startups in UK.

Acquire Industry Specific License

Certain types of businesses need licenses from local authorities to legally run their business. Failure to do so may consider a criminal offense or legal charges. You can also connect with a business law solicitor to understand more about the license and legal establishment of a business. The corporate lawyer will also help you to understand how you can be legally compliant in your business area and further acquire the required license.

Employing Staff

Indeed, you are going to hire staff for your business sooner or later. But before hiring staff, there are certain employment legislations which your business must adhere to. It is important to register with HMRC as an employer within 4 weeks of taking first employee. Business owners need to make sure that all staff is paid at least the current national minimum wage and getting employee benefits. These are just basic things, there are several other employment legal compliances that business needs to take care of. To know more about that, they can seek employment law advice UK. 

When starting a new business in the UK, understanding all the legal requirements can be quite overwhelming and frightening. If you are also getting confused while starting your business in the UK, get in touch with Legateca and leave the worries of legal issues behind!