25th February 2024

Better business. Better community

Business Industry and Financial

What are the requirements to open a new business in the UK?

Opening a business is always a great idea, especially when you are open it in a place where opening a business is easy and affordable. One of such places where it is easy and affordable to start a business is in the UK.

If you are starting an online business that will require delivering goods to customers, you should read post office services UK reviews on Britainreviews.co.uk to know the right postal services to use. The steps to follow when you want to start a business in the UK are discussed below.

Business registration

The first thing you need to do when you want to start a business in the UK is to register the business. You will be expected to select if your business is a limited company, partnership, or self-employed. You should then follow the process required of the government to register your company in the UK.

Insurance

After registering your business, you could start operating your business. However, it will be best to get a business insurance policy for your business. Getting a business insurance policy is great because it will go a long way to protect your company from unforeseen circumstances. Depending on your type of business, there are several types of insurance you can get including property insurance and life insurance for employees among others. Be sure to get adequate business insurance cover for your business.

Give equal opportunities to everyone

In the UK, you are not allowed to discriminate against your staff. Hence, you should not reject an employee or reduce their salary due to their age, gender, or ethnicity. Hence, when recruiting and operating your business, be sure to give equal opportunities to all your staffs to avoid having problems that could see you trying to defend yourself in court because you wrongly treated an employee.

Abide by data laws

The data laws in the UK require you keep the personal data of your employee safe always. If you are going to use their personal information, then there should be a clear policy on why, how and where their data will be used. They should subsequently have the choice to agree to such conditions or not.

Rights of employees to work

It is important to make sure that the individual you are employing has the right to work in the UK. In most cases, foreigners are expected to have working permits and resident visas to work. Hence, you should confirm that they can legally work in the UK before you employ them.

Background checks

It is important to carry out a DBS check on prospective employees to be sure that they don’t have criminal records, especially unspent criminal convictions. This is more so if your employees will be working in sensitive positions such as working with vulnerable people or children. It is important to avoid using someone who might abuse them.

Prepare an employment letter

Preparing an employment letter for all your employees is vital as it will outline all the terms and conditions that both parties have agreed to. Some of the items that the employment letter should contain in no particular order include collective agreements, disciplinary and grievance procedures, pension arrangements, notice period, sickness absence and pay, holiday entitlement, how often payment will be made and when, work hours, the requirement to work abroad, workplace, job title, a brief description of roles, expected end of the contract (if applicable), continuous services date, the date for the start of the contract, name of employee and employer, as well as address of employee and employer.

Other requirements

The health and safety of your employees are important and should be considered. You should also make sure that all your workers are paid above the national minimum wage. You might be required to report payments to HMRC every month. The report should cover how much each employee received. Employees that meet the condition must also be registered in a workplace pension scheme.