Are you ready to register your own business? Have you been using Rekkruut as a freelancer? Are you ready to move from self-employed to a Business Director? We will help you take the steps to transition to a company director.
Before you register your own business, it might be worth reading our post which helps you recognise whether or not you’re actually ready.
Deciding whether to open your own business is a daunting prospect. Whether you’ve comfortably worked as an employee or have been freelancing as a self-employed recruiter for a while, becoming a company director may be an unfamiliar feeling.
You may have been working at an agency for a very long time and have finally raised enough money to open your own agency. Or you may have been using Rekkruut as a self-employed freelancer, and decided you want to operate as a business rather than through self-employment. Well, we’re here to help you register your own business – so keep reading to see the steps you need to take to register your own business.
In 2022, there was a total of 5.5 million registered businesses in the UK, which employ a total of 27 million staff. This has increased by 4.1 million companies since 1979 – showing a drastic rise in the number of incorporated organisations. A majority of the businesses are Micro, which only employ 0-9 people, where there are currently a total of 5.2 million micro-businesses. So, even if it’s just you, don’t be scared to register your own business!
Let’s look at the steps you should take to get your company registered…
Step-by-step guide to register your own business
- Register your own business name
Coming up with a name is an important step, as it shows the personality of your brand and helps you stand out from your competitors. Your name should be unique and appeal to your target audience – it’s your chance to be creative! Here are the dos and don’ts of coming up with a company name:
- Avoid hard-to-spell names
- Don’t pick a name that could be limiting as your business grows
- Conduct a thorough internet search to see if the name has been used anywhere else
- Get the .com and .co.uk domains
- Use a name that conveys some meaning
- Conduct a trademark search
- Conduct a Companies House search to see if there are any similar names
- Assess if the name is catchy
- Get feedback from people on the name
- Make sure the name sounds good when said aloud
- Make sure that you’re happy with the name
Once you have a name, register your own business with Companies House.
- Choose a legal structure
There are three types of legal structures when registering a business:
- Sole Trader – the simplest business structure, with no legal distinction between you and your business
- Partnership – if you’re starting a business with a business partner or partners
- Limited Company – a complex structure with plenty of admin, but your business is legally distinct from you as an individual
There is more information on each of these entities at https://www.gov.uk/set-up-business.
- Write your business plan
While this isn’t essential when working via a business at Rekkruut, it can be useful for you to monitor and plan on the direction you want your business to grow.
You can set strategic goals, financial targets, market research, and potential obstacles. While a big part of a business plan is to create a required budget, Rekkruut eliminates this concept through removing almost all start-up costs for recruitment consultants.
You register to our app free, and all you need is a mobile device or desktop to carry out all of your recruitment activities. You can work anytime, from anywhere as you will meet with candidates and clients via video call on our platform (accessed from our database of users).
Read here for our guide on writing your business plan.
- Plan your advertising strategy
If you use Rekkruut as an individual, you won’t need to do much advertising as we grant you full access to our database of clients and candidates. Other users can access your business through our app, whether they’re employers or jobseekers.
While we bring the customers to you, it’s always important to consider how you’d advertise to clients if you were operating outside of Rekkruut. Understand marketing, branding, and how you’ll balance online and offline promotion.
- Build a social media presence
- Create a website with SEO
- Send emails and newsletters
- Use flyers and print marketing
- Network at industry events
These are great ways to market your business relatively cheap – maybe think of other creative ways to build your business!
Read here for more information on how you can market with a low budget.
- Buy your new business insurance
The type of business insurance you’ll need will depend on your business. You can tailor the coverage to protect yourself from the costs of everyday risks like accidents, damage and legal fees. You can also add specific covers if you need to protect stock or tools.
You can select from a range of covers:
- Public Liability Insurance – this is important if customers visit your premises or you carry out work on client sites
- Professional Indemnity Insurance – covers you if a client loses money because you provide negligent advice, services or designs
- Employers’ Liability Insurance – this is a legal requirement if you have employees
- Legal Expenses Insurance – covers business legal expenses or prosecution fees
- Small Business Health Insurance – affordable healthcare cover for you and your employees
- Work out what you need to do for tax
There are only two certainties in life: death and taxes. Cliché, eh? Well, it’s factual.
When running a business, you will have legal and accounting responsibilities, so it’s important you’re clear on what’s involved. There’s a £1,000 tax free allowance, but after that you’re legally required to register with HMRC or Companies House – whether you’re registering as a business or self-employed.
Sole Traders need to:
- Register with HMRC
- Submit an annual Self-Assessment Tax Return
Limited companies need to:
- Register with Companies house
- Pay corporation tax on the profits you make from your business
- File a company tax return
- Pay VAT
One of the benefits of registering as self-employed is you can claim back some of your expenses and reduce your tax bill. So, it may be a good idea to look at what you can claim back on!
- Create a system for keeping business records
Rekkruut will help you keep all of your business interests in order. However, we aren’t magicians, so it’s a good idea to keep your own records with regards to your business finances.
Keep your business and personal finances separate, as tax-deductible expenses can only be for business purposes. Open a business bank account to monitor business expenses. There’s plenty of accounting software available, where you can link your business account. They are able to monitor your income and outgoings, while also creating and sending invoices automatically.
Make sure you keep a hold of your business records, as HMRC may ask for them at some point. So, having them to hand can keep you out of trouble in the event of a tax investigation.
Best of luck with your business!
Once you’ve completed all these steps and registered with Companies House, be sure to check out the Rekkruut app if you’re wanting access to our database as a recruiter!
Don’t forget to subscribe to our RekkTalk Newsletter, visit our other RekkBlog posts, and follow us on Facebook and LinkedIn!
