Setting up a limited company
After 6 months of consulting and freelancing, I recently decided to switch from sole trader status to a limited company.
This is hardly an exciting thing but I wanted to write this post to congratulate the UK government and its digital services for such a great experience. I assumed that the government system for setting up a company would be slow and laborious – maybe it was in the past – but I had an easy time setting my company up.
The GOV.UK website contains all sort of information, from setting up a business, information about corporation tax and details about the first tax return. Essentially, anything you wanted to know about running a business can be found on their site.
Incorporation was a simple £12 fee for online application, or £40 for postal applications. This shows how much they want you to apply online. Their website guides you through the whole process, asking questions about your situation and referring you to a different service if you have odd circumstances. It took me around 15 minutes all-in. They even have 2FA throughout the site!
I know this is much different to other countries, where you need to pay large sums of money to incorporation lawyers for setting up simple business structures.
A few days later, you receive a letter from Companies House with your Certificate of Incorporation.
And essentially, that’s it! I set up a business bank account with Starling Bank, an online-only bank, which gave me a bank account within 1 minute and I’m now just waiting for the card to arrive.