December 2022 - Business Name Registrations and Company Formations

How to Check If Your Business IP is Protected from Competitors

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Get Copyrights, Trade Marks, Design Registrations and Patents
Create Comprehensive Confidentiality Agreements
Consult Professionals in Intellectual Property (IP)
Avoid Co-ownership of IP Rights
Punish Those Who Violate IP Rights
Have Awareness Training for Employees
Gather Proof of Your Intellectual Property
Get Your IP More Exposure
Make Investments in IT Security
Define Your Copyright Policy Clearly
Register Your Company, Product and Domain Name
Conclusion

Any unique ideas and creative works created by an individual or organisation fall under the umbrella of Intellectual Property (IP). In the past, the question of how to get Intellectual Property Rights and safeguard these rights wasn’t a huge concern. However, with information being simpler to acquire and disseminate nowadays thanks to technology, protecting your works from copycats and competitors has become crucial. Social media has propelled some small businesses which would ordinarily have been great local businesses to be successful businesses both nationally and worldwide.

It is now more important than ever to ensure that your business’s IP is protected from competitors. Here are a few ways to check that you are doing all you can to do this:

Get Copyrights, Trade Marks, Registered Designs and Patents

By registering Intellectual Property Rights in the UK, businesses will be better placed to negotiate for cross-licensing and counterclaims while also securing protection for their research and development processes. A company can use IP Rights and registrations to block rival products, discourage new competitors, and open up the market for future market share thanks to technical developments.

A company can use IP Rights and registrations to block rival products, discourage new competitors, and open up the market for future market share

There are several different types of Intellectual Property Rights, and each one includes the ability to sue if a third party violates them. Some of them include:

Copyrights

These are a kind of IP that defends original works of writing or creative expression. For literature, artwork, drawings, or a mix of these things created by a company, Copyrights may be licenced. Within the UK copyright protection applies automatically, for example once content is written that is protected without any further steps necessary.

Trade Marks

These tend to be a business’s trading name, brand names, icons, or logos which are employed to identify the goods or services of a firm. A Trade Mark is anything that serves to distinguish a collection of items, commodities, and services as coming from the same owner or source, including names, words, signatures, texts, emblems, paintings, figures, inscriptions, photographs, and advertising. A brewer may Trade Mark its Trading name and logo but then also each individual beer they brew therefore creating sub-brands.

Patents

Patents are often used to register innovations and items that are special and not commonly known to the wider public. Inventions and creations within the pharmaceutical industries are good examples of where Patents need to be registered. To secure a Patent, technical details regarding the innovation must be made available to the public via a Patent application.

Registered Design

Design Registration helps protect the appearance of a product, such as its shape or pattern. It is what gives the product its unique appearance. Registering your design makes it easier to prove that the design is legally yours. Examples are particular shapes of chocolate, bottles or bags.

An IP Audit, such as what Start.Biz offers, can go a long way towards reviewing the status of your IP and helping you figure out the right way forward. For more on this, read our prior article.

Create Comprehensive Confidentiality Agreements

It is also a great choice to enlist the aid of a legal representative when creating non-disclosure legal clauses, which must be precise and explicit. Make sure that every other contract you employ in your business contributes to the protection of your Intellectual Property. Contracts for services, licensing, and distribution are some examples. If you produce artwork, others may wish to licence your work to use on their own products or merchandise, it is important that you invest well in getting the right advice in these areas to ensure what is drafted is fit for purpose to protect you and your business’ IP.

Consult Professionals in Intellectual Property

For assistance with searches and licensing, speak with an IP expert like Start.biz to make sure that any IP you produce is properly protected. Many business owners spend lots on their logos and branding but:

Fail to either ensure that it is truly unique to start with and not infringing on anyone else’s IP
Or they don’t protect it by registering a design or Trade Mark where they can, which therefore allows others to copy their name, work, logo or brand and can result in an entire rebranding exercise being needed which is time-consuming and costly.

Protecting your business’ IP may be done in order to prevent others from imitating you, to add value to your company, or to sell or licence to a third party. Protecting your business’ IP adds to your brand and the authenticity of your business as a whole.

Avoid Co-ownership of IP Rights

Try to avoid shared Intellectual Property Rights where possible. The ability to use your rights is always in your best interest. Co-ownership of IP Rights over time may result in misunderstandings and legal problems that endanger the security of these assets, harming all parties concerned. It is important to really consider who should own the IP when registering these, should it be the Limited company or should it be the owner of the company. This becomes particularly important when additional shareholders join a company or if they are sold.

Co-ownership of IP Rights over time may result in misunderstandings and legal problems

Punish Those Who Violate IP Rights

You can’t afford to go soft in business. Keep your Patent, Trade Marks and Registered Designs secure, and defend your legal rights by reporting infringements and bringing legal action against offenders when necessary. There are many legal cases which have resulted in the profit earned through the infringement of IP being paid to the owner of the same IP.

Have Awareness Training for Employees

As is frequently the case, people are the weakest link in the chain of protection. Because of this, an IP security approach that ignores staff training and instead exclusively depends on digital firewalls and Copyrights will fail. If awareness training is customised to the IP assets that a particular group of employees must safeguard, it will help in resolving and preventing potential Intellectual Property infringements. Also, the majority of the time, a company’s Intellectual Property is compromised through error or ineptitude. Make sure the employees are aware of the ways they could mistakenly expose IP. This is particularly important with registered Design and Patents and when they are in the process of being developed or registered. We’ve heard of ‘leaked’ emails and information by staff both current and former.

Gather Proof of Your Intellectual Property

Quite frequently, competitors find out about an idea through leaks and apply for a Patent claiming it as theirs. As a result, you’ll need to demonstrate that you are the legitimate owner. This can be done by keeping a record of the evidence that shows how Intellectual Property Rights have changed, like dated and original copies of drafts. This is also the case for Copyrights. Although in the UK these are automatic, if there is a dispute over whos work something is and one party has dated draft documents and other evidence of the final work coming together they are more likely to be able to succeed in claiming their ownership of that IP.

Get Your IP More Exposure

The best and safest approach to protecting your Intellectual Property is to be the first to apply to register it, where registered design, Patent or Trade Mark. Aside from this, another typical method to guarantee that your IP is acknowledged as being yours is to publish and quote it widely and credit it to your company’s name. The more exposure your IP receives, the more support it will get.

Make Investments in IT security

Technology and the internet are used to conduct almost all business today. This has a benefit in that it could encourage an operation’s development, dynamics, and success. However, the use of technology in business also has drawbacks, particularly if your company’s IP is kept in a system that can be hacked, corrupted, or is directly connected to the internet.

Therefore, it is necessary to adopt strong security measures inside your company’s IT infrastructure. These may consist of (1) encryption of data, setting up password security for all computer networks, creating Wi-Fi Protected Access 2, and using VPN.

It is necessary to adopt strong security measures inside your company's IT infrastructure.

Define Your Copyright Policy Clearly

To direct and inform the public on what is appropriate and inappropriate regarding your IP, you may develop your own policies. Although you won’t necessarily be legally protected this way, you may instruct individuals on how to distribute your information properly.

Simply create a list of acceptable and unacceptable ways to use, share, or reproduce your work. Give them rules about what they may do without your written consent and what they should get your consent for.

Register Your Company, Product, or Domain Name

By registering the company, product, or domain name connected to your intended IP, you will further safeguard your ownership of it as well as your identity. To make sure you aren’t choosing a name already in use by someone else, use our Business and Domain Name Search Tool linked below.

Even if you’re only beginning the planning process for your firm, it will still be beneficial to reserve these names so that nobody else comes up with a similar idea and creates complications.

Your brand includes your company name, your logo, your products and your domain names. It could even include the typography used throughout. Registration will be beneficial even when you are the sole owner with only your name to go by. Additionally, you will have the legal protection that separates your company and Intellectual Property from you personally.

In Closing, it is paramount that businesses to create and implement a plan for their operations, especially when it comes to how IP is handled. Intellectual Property is one of the most valuable assets that you may have, it needs to be safeguarded and managed. The important thing is to take a multifaceted approach, as detailed above, so that you can remain ahead of your competitors at all times.

At Start.Biz, we know how to protect an IP and make it a simple process. We have worked with all kinds of businesses and have the experts to help you with it. Reach out to us today to get the protection you need and realise your business goals!

Summary

A company can use IP Rights and registrations to block rival products, discourage new competitors, and open up the market for future market share thanks to technical developments.
Enlist the aid of a legal representative when creating non-disclosure legal clauses and licence agreements.
For assistance with searches and licensing, speak with an IP expert to make sure that any IP you produce is properly protected.
Attempt to avoid shared Intellectual Property Rights.
Keep your Patent and Trademarks secure, and defend your legal rights by reporting infringements and bringing legal action against offenders when necessary.
If training is provided to staff to raise awareness to the IP assets that a business has, it will help in resolving and preventing potential Intellectual Property violations.
Keep a record of the evidence that shows how Intellectual Property Rights have changed, like dated and original copies of drafts.
Publish and quote your IP widely and credit it to your company’s name. This will give it more exposure and prevent others from claiming it.
Adopt strong security measures inside your company’s IT infrastructure.
To direct and inform the public on what is appropriate and inappropriate regarding your IP, develop your own policies about acceptable and unacceptable ways to use, share, or reproduce your work.
By registering the company, product, or domain name connected to your intended IP, you will further safeguard your ownership of it as well as your identity.

Why Business Process Outsourcing Makes Sense

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What is Business Process Outsourcing (BPO)
Benefits of Outsourcing
How to Pick a good BPO
Concluding Thoughts

Many companies, from Dynamic Start-ups to Large Enterprises, like to outsource non-core business functions in today’s hyper-connected world. These kinds of services are widely offered by Business Process Outsourcing (BPO) enterprises.
In this article, we will tell you everything there is to know about BPO.

What is Business Process Outsourcing (BPO)

When an organisation contracts a third-party entity to do some business activities, this is referred to as Business Process Outsourcing. Utilising BPO services is meant to assist companies in achieving their objectives while lowering operating expenses. BPO companies may assist with both front- and back-office tasks. BPO can be used by a company for client-facing tasks, including outbound or inbound sales, data input and analysis, and customer support. Human resource management, finance, and help desk support are examples of common back-office outsourcing.

Paying an external organisation to sort out your accounting needs, for instance, saves you from having to hire internal financial employees to handle payroll. In this theoretical situation, your company would benefit from skilled, experienced financial management at a significantly cheaper cost than hiring in-house accountants. Your internal team may therefore focus on important projects that will help your company expand instead of the time-consuming administrative burden of managing workers.

Benefits of Business Process Outsourcing

Let’s look at a few benefits that outsourcing may provide!

Cost-Effectiveness

If a company wants to keep expenses under control, outsourcing could be a better option than hiring for certain positions directly. This is especially true if a company only sometimes needs a certain service (like legal help).
Budgeting the right way is another way to bring costs down. You can find more in our previous blog about it.

Efficiency in Time

Efficiency is the name of the game. Some businesses might save money and time by utilising a BPO service provider. It may be possible to save time by looking to an established BPO business that already has the necessary skills.

Some businesses might save money and time by utilising a BPO service provider.

Businesses can easily manage the highs and lows of work thanks to Business Process Outsourcing. When business is booming, the BPO provider can allocate several employees, who can then virtually do nothing when business is slow. Businesses that see these trends would be wise to make sure their BPO provider has no minimum expenditure requirement in order to prevent bill accumulation during slow times. Some BPO’s have a low ongoing retainer, others you can contract on and off.

Scalability

Scalability is another important advantage of BPO. Businesses can raise or reduce their productivity as needed when they outsource certain operations. This enables firms to scale in accordance with their present demands and long-term goals.

Effective Resource Use

When employees require specific skills, employers frequently expand the scope of their job descriptions. For instance, marketing professionals frequently find their work veer towards PR in reaction to business needs. However, this has a detrimental effect on the business’s capacity to manage its marketing. In this case, hiring a BPO business to handle PR will ensure the effective utilisation of the available marketing resource.

Multilingual Services Provision

Customers demand and expect service in their own tongues. If doing so requires hiring multilingual full-time personnel, not every firm can afford to do so. Therefore, one benefit of the BPO sector is that it can affordably make multilingual help available to businesses.

Increased Expertise

BPO services are experts in their own field. BPOs can supply an upgraded solution that is much beyond what a business could manage to provide in-house, whether they offer legal skills, financial experience, or marketing expertise.

BPOs can supply an upgraded solution that is much beyond what a business could manage to provide in-house

Adherence to Standards

Businesses that must follow particular standards can find it simpler to engage professional BPO services to assure compliance, regardless of whether it is regulatory or quality compliance.

Risk Reduction

A BPO can be used by businesses to reduce their risk in regard to financial or regulatory problems. For example, a BPO in charge of managing payroll or creating a company’s accounts is accountable for producing correct data and guaranteeing adherence to applicable tax and social security regulations.

Primary Goals

By utilising BPO services, organisations may spend less time on activities that divert attention from their primary objectives. After all, their initial motivation for starting their business was to maintain that concentration. It is best if they could give it more focus. Allowing them to concentrate on what they are good at and enjoy the most. This can ensure we avoid the phrase ‘Jack of all, master of none’ does not apply to them and their business.

Rapid Reactions

Even in the best of times, dealing with shifts in client demand may be challenging. A BPO organisation is frequently able to assist a business to adjust more effectively and easily when the speed of those shifts increases, for instance, as a result of an outside situation like COVID-19.

Tech Access

BPO services that excel in offering particular services will have access to the most recent technologies. This might refer to anything, including expensive financial software and effective email marketing tools. As a result, the business employing the BPO service has access to cutting-edge technology without being required to pay for it directly.

BPO services that excel in offering particular services will have access to the most recent technologies.

How to Pick a Good BPO Provider

The next thing you need to know is what are the steps in Business Process Outsourcing. Finding the ideal provider for you is the next step once you have decided which BPO service to outsource. There are a number of Business Process Outsourcing companies out there, and making a pick might be difficult due to the abundance of services. Here is what you should consider:

Evaluate Your Needs

Start by thinking about the qualities you seek in a provider. What particular services do you require? How much can you spend? Do you prefer a local or international provider? What value do you place on industry experience?

Conduct Research

When you believe you have figured out your requirements, it’s time to perform some research. This goes beyond just perusing internet reviews. It’s crucial to chat with the supplier personally in order to get a feel of their general skills. In some cases you may know other clients of the BPO company, speak to them, get a feel of what they are happy with and what they may like to be done differently.

Compare the Providers

There is no uniform solution, and each provider has unique strengths and shortcomings, so this can be challenging.
The most crucial thing is that you choose a provider who shares your goals and values. Spend some time evaluating several providers to determine which ones give the services you require at a cost you can work with.

Make the Final Choice

Make sure you’ve gathered these essential details before making a final call:

Costs
Expertise in your sector
Compatibility with your existing systems
Quality control procedure
Contract-specifics

Concluding Thoughts

BPO can handle all of your administration and customer support-related needs, freeing you up to concentrate on your primary company objectives.

It’s crucial to conduct research before selecting a BPO provider because several variations of these companies are available. Find a business that has a solid reputation and can offer the services you want at a cost you can afford.

BPO is an excellent way to advance your company. You may concentrate on your strengths and more effectively expand your business by outsourcing the work that does not necessarily have to be done in-house.
Remember you do not need to do this all at once, you can add BPO companies one by one at a time when the business can finance this so try to list your priorities in terms of external expertise and go from there.

At Start.Biz, we help you figure the best solutions for Business Process Outsourcing. Reach out to us today to optimise your business operations and realise your goals!

Summary

When an organisation contracts a third-party entity to do some business activities, this is referred to as Business Process Outsourcing.
Outsourcing could be a better option than hiring for certain positions directly for cost-effectiveness.
It may be possible to save time by looking to an established BPO business that already has the necessary skills.
Businesses can raise or reduce their productivity as needed when they outsource certain operations.
Hiring a BPO business to handle PR will ensure the effective utilisation of the available marketing resource.
Multilingual Services Provision
BPO can affordably make multilingual help available to businesses.
BPOs can supply an upgraded solution that is much beyond what a business could manage to provide in-house..
Businesses that must follow particular standards can find it simpler to engage professional BPO services to assure compliance.
A BPO can be used by businesses to reduce their risk in regard to financial or regulatory problems.
With BPO, businesses spend less time on things that divert attention from their primary objectives.
A BPO service helps a business evolve to client needs quickly.
BPO services that excel in offering particular services have access to the most recent technologies.

8 Less Conventional Ways to Fund Your Business

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Self-Funding
Crowdfunding
Community Development Finance Institution
Home Equity
Friends and Family Loans
Retirement Funds
Business Incubators
Grants
Bank Overdraft

It can be challenging to Plan and Launch a New Business, and you’ll probably need to get funds for the business. People typically find the Business Funding Process to be incredibly stressful and quite draining.

Getting funding is one of the difficulties in starting a business, especially a smaller one.
Fortunately, the landscape of financing for a new business is continuously evolving and is beginning to provide entrepreneurs with more alternative funding choices.

Do not let funding hold back your business goals. There are many options you may not have thought of in terms of your funding to start a business:

Self-Funding

Before you explore how to get funding for a new business of yours, the first step is to look at your own financial situation. One of the best sources of funding is your own money. You will be able to fully take control of your company’s financial transactions this way and present a more promising picture. If you have committed your own money, you will also be better able to persuade other investors of the viability of your Business Idea. It will help minimise the perceived risks for investors and open up more avenues of funding. After all if you aren’t backing yourself how do you expect others to.

If you have committed your own money, you will also be better able to persuade other investors of the viability of your Business Idea.

Crowdfunding

Over the past few years, crowdfunding has become very popular. You may be curious about how crowdfunding operates. The way it generally works is that you must first provide accurate and comprehensive information about your new company on the crowdfunding site. If your clients or customers back the concept of your Business Idea, they will provide you with the cash. You will need to express the goals and purpose of your business as well as how much profit you plan to generate annually or monthly, why you started this specific business, and much more.
There are four distinct kinds of crowdfunding, and the key difference is what you provide your investors in exchange for their money:

Equity Crowdfunding

This is based on the premise that you give up an interest in your business in exchange for money. This means you can raise a lot of money, but you’ll have to be very transparent about your business and cautious about what portion of it you give away.

Crowdfunding with Rewards

This is generally about incentivising your backers by selling the products or services you’re selling at a relatively lower price.

Peer-to-peer Crowdfunding

Peer-to-peer crowdfunding is similar to receiving a Business Loan from a group of investors with the understanding that you would have to pay interest on the loan.

Donation-based Crowdfunding

Donation-based crowdfunding allows you to get funds without needing to do anything in return. However, this generally applies to businesses that help out local communities and so is perfect for Charities or Community Interest Companies.

Community Development Finance Institutions

It’s understandable if you don’t know about CDFI. They happen to be a very obscure feature of the UK financial system.
The term “CDFI” refers to Community Development Finance Institutions, which are ethical lenders who assist businesses they lend money to.

This includes financing at competitive rates, so CDFIs aren’t exactly cash cows. In fact, many of them run on a non-profit model and depend on donations from the Government, wealthy individuals, and Philanthropists.
Funding from a CDFI may be an excellent option for your company if you want a Business Loan but are unable to be approved by a commercial bank. Use the search feature on the Finding Finance website to explore what CDFI possibilities are available to your business.

You can also find UK Government Business Finance Support online.

Home Equity

Another way of financing for a new business is through Home Equity. Your home’s equity can be used as security for loans, allowing you to borrow money. Due to the presence of collateral, you will be able to formally promise to repay the loan within a set period of time, and if you are unable to do so, the Lending Institution will be able call the loan in as they may have a charge against your property, this means unless you can find the funds elsewhere a forced sale of your property can be completed to allow the institution to recoup its loss. Although this is a risky operation, there are specific rules that both you and the lender must follow.

You can find more about loans and borrowing in our Step-by-Step Guide to Financing a New Business in the UK.

Friends and Family Loans

If getting funding for a business is leading you to dead ends elsewhere, there is always friends and family to help raise a one-time investment for your new company.

According to research, family members and friends of the entrepreneur spend money on their Business Initiatives three times more often than Angel Investors. Although asking for a loan from friends and family can be awkward, you must have some trust in both yourself and them. This leap of confidence from you is required. To get them on your side, you may show them your company strategy along with a Cost-Benefit analysis of investing.

The secret to ensuring that a family loan doesn’t result in any uncomfortable situations down the road is to make sure the conditions are clear, and there is a suitable agreement that can be pointed to afterwards. The two parties must acknowledge their shared risk by signing an agreement, which is a requirement in many nations. Startup Enterprises are typically risky, and you, your friends, or even your family may lack relevant experience. This is why it is advisable to work with a lawyer to prepare the Loan Agreement.

According to research, family members and friends of the entrepreneur spend money on their Business Initiatives three times more often than Angel Investors.

Retirement Funds

You can use some of your Retirement Funds to invest in your new business. It’s likely to be helpful to talk to your friends and family about your intentions before you do that. You must also get expert advice from licensed accountants and lawyers. They will assist you in knowing more about the business Startup approach and the risks you will have to accept. You must exercise caution even though it may occasionally appear attractive to use retirement assets to make investments in your company.

Business Incubators

There are several organisations out there that are willing to assist a new business in obtaining funding. Business accelerators, also known as Incubator Programmes, support the growth of Startup companies by providing seed capital in return for an ownership part in the company. Incubators offer mentor programmes, networking possibilities, and the necessary funding.

Incubators offer mentor programmes, networking possibilities, and the necessary funding.

Business Grants

There are often Business & SME Grants available that tend to be match funded so will require you to put in a certain percentage of funding and then a funding source with match it with another percentage. The Business Grants available can vary on location and the type of business you wish to start but it is always worth looking into this as part of your research both before starting and during the set up of your business. There will be lots of different criteria that apply and this will vary with all available Business Grants depending upon who the lender is and what the purpose of the grant is. Your local Growth Hubs are a great place to start when looking at this along with the UK Government Grants.

Bank Overdraft

Anyone who has ever had a bank account is likely familiar with how an overdraft operates. It’s basically a way to continue spending (and entering negative numbers) after your balance reaches zero. Interest will, however, be levied on the negative amount.

Similar to a Personal Overdraft, a Business Overdraft is tied to your business bank account, and the rate of interest you pay is determined by the financial health of your company.

Overdrafts may be arranged or unarranged. When you and your bank agree on a certain sum, you can overdraw and the associated fees that come with it, this is known as arranging. Unarranged Overdrafts occur when you don’t notify your bank and often incur astronomical fees as a result.
They may also be secured or unsecured. A Secured Overdraft is secured by property owned by your company. If you are unable to repay the overdraft, the overdraft may be secured by your company property or car, for instance. Such terms do not apply to Unsecured Overdrafts.

When it comes to financing your business, there is no one-size-fits-all solution. The ideal option for you will hinge upon the stage your company is in and the use you want to make of the financing.

At Start.Biz, we help you navigate the funding landscape to start a business. Reach out to us today, and we will help you get the funding you need to realise your business vision!

Summary

One of the best sources of funding is your own money. You will be able to fully take control of your company’s financial transactions this way and present a more promising picture.
Crowdfunding is another avenue to explore. If your clients or customers back the concept of your Business Idea, they will provide you with the cash.
Funding from a Community Development Finance Institution may be an excellent option for your company if you want a Business Loan but are unable to be approved by a commercial bank.
Another way to finance your new business is through Home Equity. Your home’s equity can be used as security for loans, allowing you to borrow money.
You can raise a one-time investment for your new company from friends and family. According to research, family members and friends of the entrepreneur spend money on their Business Initiatives three times more often than Angel Investors.
You can use some of your Retirement Funds to invest in your new business. You must exercise caution even though it may occasionally appear attractive to use retirement assets to make investments in your company.
Business accelerators support the growth of Startup companies by providing seed capital in return for an ownership part in the company.
Similar to a Personal Overdraft, a Business Overdraft is tied to your Business Bank Account and may be used for funding in certain situations.

Legal Requirements You Need To Know To Start a Small Business in the UK

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• Name Your Company

• Register Your Company

• Obtain a Licence

• Get Insured

– Employer’s Liability Insurance

– Commercial Motor Insurance

– Public Liability Insurance

– Professional Indemnity Insurance

• Employing People

– Perform Applicant Screening

– Register with HMRC

– Ensure Minimum Wage

– Auto-Enrol in Pensions

– Employment Statement

– Health and Safety

• Create Internal Legal Documents

– Policy on Privacy

– Company Manual

• Ensure Equal Opportunity

It can be challenging and confusing to understand all of the legal requirements for Starting a Small Business. One of the major concerns has to do with hiring employees and being aware of the laws and regulations for a business to meet employment regulations in the UK.
In this article, we want to put your concerns to rest by outlining the measures for consideration when Starting a Small Business in the UK.

Intellectual Property refers to Intellectual Assets, Ideas, Patents, Trademarks, Copyright etc.

Name Your Company

Your first job is to give your new company a name and make it distinctive. You can be accused of trying to present your company as another if the name is too close to one of an already existing company. Therefore you should do your research when selecting your business’ name.

Start.Biz has a unique Business Name Search Tool which allows you check whether the name of the business you want to use has already been registered with Company’s House, it also allows you to check various Social Media Handles, Domain Names and allows you to see what email addresses are available.

Companies House is a typical place many go to check whether the business name they want has already been taken, but it must be remembered that this does not cover the work of Sole Traders and Non Limited Businesses. There are also some words that are sensitive terms that are unable to be used when forming a company. It is also good practice to also complete a Trade Mark Check to ensure your business’ name hasn’t already been registered as a trade mark as you may be infringing someone else’s IP before you even start.

Start.Biz is on hand to assist in this, either through the tool or by contacting our team we are able to ensure the business name you register is not a copy of someone else’s business and no infringement of trade marks is taking place.

Register Your Company

You must officially register your business in order to start trading. You need to decide which business structure—Sole Trader, Partnership, or Limited Company—best meets your goals. It can be intimidating to launch a small business, but once you’re registered, the possibilities are endless!

It can be intimidating to launch a small business, but once you're registered, the possibilities are endless!

For more on this, read our Ultimate Guide to Registering a Business Name in the UK. It lays out in detail how you can pursue Business Name Registration or Trade Mark Registration.

Obtain a Licence

For certain enterprises to operate lawfully, the local government must provide a licence. Hotels, hair salons, street vendors, boarding kennels, and restaurants are a few examples.
To find out if you need to register or receive a licence, get in touch with your local government and ask to talk with Local Planning or the Building Control Office.

Get Insured

Once you’ve established your company, it’s vital to safeguard it in case something goes wrong. This is where insurance comes in.

Employer’s Liability Insurance

All companies with employees are required to have employer’s liability insurance. This is to shield you against any disputes an employee could bring after experiencing sickness or injury while working for you.

Commercial Motor Insurance

If staff need to use vehicles, commercial motor insurance is also required. You might also need to apply for licences if you sell food or perform music.

Public Liability Insurance

This covers the cost of claims made by members of the public for incidents that occur in connection with your business activities, for example, personal injuries or the loss or damage to property.

Professional Indemnity Insurance

This is mandated by law for certain professions, such as those of architects, attorneys, and some healthcare providers. This takes care of the price of any compensation granted to clients for losses or damages brought on by poor service.

Employing People

When the question is to describe the legal obligations of a small business, employing people is the front where much of it applies. If you plan to hire people, you must ensure that you abide by all applicable employment laws. You need to ensure that you are undertaking or setting up the following:

Perform Applicant Screening

It is your legal obligation as an employer to confirm that all potential employees are eligible to work in the UK. You can also be required to undergo a DBS check, often known as a criminal records check, depending on the industry you work in. If you and your company don’t, you might be subject to a civil fine.

It is your legal obligation as an employer to confirm that all potential employees are eligible to work in the UK.

Register with the HMRC

After hiring your first employee, you typically have four weeks to register with HMRC. Any taxes and National Insurance contributions must be withheld from your staff members’ salaries by you. If you don’t make the necessary preparations, you’ll also be accountable for paying any outstanding business or employee taxes at the year’s end.

Ensure Minimum Wage

The national minimum wage must be paid to all employees for all hours worked. Each employee’s age and position do, however, affect their pay.

Auto-Enrol in Pensions

Employers are required to enrol all eligible employees in workplace pension plans. There are a number of things such as age or hours worked/salary earned which may make an employee ineligible but this needs to be looked into on a case by case basis. There are many pension plans that either demand that you or the govt match a certain amount of each employee’s pension.

Employment Statement

All employees who will work for you for more than a month must have a formal statement of employment from you. Within eight weeks of their date of joining, employees must receive this statement that outlines the terms of their employment, including the hours and salary. In addition, staff should receive a contract. You can do so by integrating it to the statement of employment. Their rights, obligations, and working circumstances are specifically described in the contract.

Health and Safety

All businesses are expected to give their employees a safe place to work. A formal, documented health and safety policy is required if you employ more than five people. This covers a safe working environment, safe entry to the workplace, safe work processes, safe use of tools, safe worker relationships, and protection against injury hazards.

Create Internal Legal Documentation

Making internal legal documentation is one of the key requirements to start a business and a way to give your customers, workers, and possible investors trust in your company.

Privacy Policy

The current GDPR requirement in place mean that you need to ensure you have a Privacy Policy. Describe how your customers’ data will be gathered, utilised, kept, and safeguarded in your privacy policy. It ought to specify whether sharing of any personal information could be necessary.
Small firms are also legally required to protect employee information and to lay out a clear plan for its usage. The best approach to safeguard data is to store it in HR software. To guarantee that your employees are fully informed of how their personal data will be held, for what reason, and how long it will be retained, have a transparent Privacy Policy and make it accessible and up-to-date.

Company Manual

You will probably update and add to your company manual as your firm expands. In essence, it is a book that summarises how you run your firm. It must always be accessible to the workforce; you may either provide each employee with a copy or keep it easily accessible in another way for review. It may include:

Mission Statement

The mission statement should outline your company’s history, goals, and desired outcomes.

Rules of Your Business

Your company’s rules, together with any other company-specific regulations, are often extensions of any additional legal requirements. This might include things like responding to calls, desk policy beyond work hours etc.

Ensure Equal Opportunity

Employers are not permitted to discriminate against any employee based on protected traits like race, age, gender etc. There are several points in the hiring process when businesses might unintentionally slip up, so it’s critical to get knowledgeable about discrimination laws right away and ensure that you do not fall foul of them!

Employers are not permitted to discriminate against any employee based on protected traits like race, age, gender etc.

Don’t let legal obligations overwhelm you.

There is a lot to consider, so this may all seem overwhelming, but I hope this information will help you prepare and fulfil your legal requirements. It is preferable to begin small while keeping the overall vision in mind. To stay focused on your original goals, keep returning to your standard business strategy.
Visit the official UK govt website or get in touch with a legal professional immediately for help or advice if you ever have concerns or questions about certain legal obligations. Good luck with your business endeavours!

At Start.Biz, we help businesses get things set up. So, reach out to us today for all your business needs–legal or otherwise–and let’s position you for success!

Summary

Research potential names to ensure no infringement.
Register your company and give it a distinctive name.
Obtain a licence if your business is required to have it.
Get insurance coverage to mitigate possible risks. This may include employer’s liability insurance, commercial motor insurance and professional indemnity insurance.
When employing people, perform a DBS check, register with HMRC, ensure a minimum wage for employees, auto-enrol in pensions, provide an employment state that may possibly also include the contract, and set out a health and safety policy.
Create internal legal documentation, such as a privacy policy and a company manual.
Lastly, ensure equal opportunity.