It’s a fair question. And the honest answer is: you don’t have to use an agent. Companies House will take your £100, process your application, and send you a certificate. That’s exactly what they’re there to do.

But that’s also where they stop.

We’ve been helping founders navigate this decision for over ten years, as an authorised Companies House agent with more than 30,000 companies formed. Here’s what most people get wrong.

What Companies House gives you — and what it doesn’t

Companies House is the UK’s official company registry. When you register directly, you complete an online form, pay £100, and your company is typically incorporated within 24 hours. That part is genuinely straightforward.

What Companies House doesn’t give you is anyone to ask. There’s no one to check whether your application is set up correctly before it goes in. No one to advise on share structure, director responsibilities, or what your PSC details should look like. No one to call when HMRC writes to you six months later with a letter you don’t understand. No privacy protection for your home address. And no ongoing support once the certificate has been issued.

The registration itself is the easy part. Everything around it is where people run into trouble.

Who the direct registration is really built for

Direct registration through Companies House is designed for accountants, solicitors, and company secretaries who file on behalf of clients and do this day in, day out. Even then, a significant number of them use Mint — because the compliance support, address services, and ongoing relationship we offer saves them time and reduces their liability too.

For a first-time business owner doing this once, going it alone means navigating a process built for professionals — without any of the experience or safety net that comes with it. The form isn’t the problem. The decisions behind the form are.

The questions nobody warns you about before you start

Before you even reach the registration form, some decisions will shape your company for years. Most first-time founders don’t know these questions exist until they’re already midway through — or until a problem surfaces much later.

During registration, the questions founders typically face:

“How should I divide the shares between myself and my business partner — and does the split matter?”

“Do I need a company secretary, and what does that role actually mean?”

“Who counts as a Person with Significant Control (PSC), and how do I record them correctly?”

“Which SIC code applies to my type of business — and what happens if I pick the wrong one?”

“Can I use a PO box or postbox number as my registered office address?”

“What are Articles of Association — do I use the standard ones or do I need bespoke ones?”

These aren’t complicated questions in the hands of someone who has done this before. But for a first-time founder, they’re easy to get wrong — and the consequences often don’t surface until much later. We regularly hear from business owners who only discover an issue when they’re trying to sell their company, bring in investors, or when their solicitor flags something during due diligence. By that point, fixing it is far harder and more expensive than getting it right at the start.

The address question — more important than most people realise

When you register a company, a registered office address must be provided by law — and that address goes on the public record at Companies House, visible to anyone who searches for your company.

If you use your home address, it stays there permanently. Many founders only realise this after registration, when unsolicited mail starts arriving, or a business contact looks up their company and finds where they live. Removing it later requires a registered office service anyway — you just end up paying after the fact rather than before it.

Our Privacy Package, from just £19, includes a professional London registered office address and director’s service address for a full year — keeping your home address completely off the public register from day one. For £19, it’s the simplest decision you can make at registration.

What changes when you register with Mint

When you register with Mint, a real person checks your application before it goes to Companies House. Share structure, PSC details, SIC code, registered address, articles of association — we make sure everything is correct and appropriate for your situation. We ask the questions you might not know to ask.

And once your certificate arrives, we don’t disappear. The questions that come after registration are just as important as the ones before it.

After registration, the questions founders typically call us about:

“HMRC has sent me a letter I don’t understand — what does it mean?”

“When do I need to file my confirmation statement, and what happens if I miss the deadline?”

“Do I need to register for VAT yet? What’s the threshold?”

“How do I register for Corporation Tax, and when is my first payment due?”

“I want to add a new shareholder — how do I do that properly?”

“My details on Companies House don’t look right — how do I fix them?”

These are the calls we take every day. Real people, on the phone, who know your company and can give you a straight answer. Not a government helpline. Not a FAQ page. Us.

We’ve been an authorised Companies House agent for over ten years. That experience means we’ve seen what happens when these questions go unanswered — and we’re set up specifically to make sure they don’t have to.

Getting it right the first time matters more than most people think

Company registration feels like a one-time task. In reality, the decisions you make when you register stay with your business for its entire life.

We’ve spoken to founders who set up their share structure informally at the start, only to find it caused serious complications when they tried to bring in investors three years later. Founders whose home address appeared on Companies House and couldn’t be removed without cost and effort. Founders whose SIC code was slightly off, leading to unexpected HMRC correspondence, didn’t know how to handle it.

None of these is catastrophic on its own. But they’re all significantly harder to fix after the fact than before it. And they’re exactly the kinds of things we catch before your application goes in.

The cost of getting it wrong rarely shows up immediately. It shows up when you’re selling the business, when your accountant reviews your structure for the first time, or when your solicitor flags something during due diligence. That’s the worst possible moment to discover a problem that could have been avoided on day one.

A quick comparison

The real cost of getting it wrong

On paper, registering directly saves money. In practice, the calculation looks different.

The £100 Companies House fee is identical whether you register yourself or through an agent — it’s a statutory charge that every company pays. What you’re actually deciding is whether to have expert, experienced guidance alongside that filing, or not.

A wrong SIC code means re-filing. A missed confirmation statement deadline means a £150 fine and risk of company strike-off. A home address on the public register is there permanently unless you act. A share structure that wasn’t thought through can derail a funding round years later.

Mint’s Privacy Package starts from £19. Our full formation packages start from £4.99 plus the £100 CH fee. Neither is a premium for something you don’t need. Both are access to people who’ve done this 30,000 times and will still pick up the phone when you need them.

Everything you need to know — answered

Should I register my UK company directly with Companies House or use a formation agent?

For accountants and solicitors who do this regularly, direct registration is fine. For first-time business owners, using an authorised formation agent like Mint Formations is strongly recommended. An agent checks your application before submission, advises on share structure, PSC registration, SIC codes, and address privacy, and provides support after registration. The £100 Companies House fee is the same either way. The difference is whether you have experienced guidance alongside it.

Will my home address be made public if I register directly with Companies House?

Yes. If you use your home address as your registered office or director’s service address, it will appear on the public Companies House register, visible to anyone who searches your company. Mint Formations’ Privacy Package, from £19, provides a professional London address for both, keeping your home address off the public record from day one.

What is a Person with Significant Control (PSC) and do I need to register one?

A Person with Significant Control is anyone who owns more than 25% of shares, controls more than 25% of voting rights, or has the right to appoint or remove the majority of the board. Every UK company must register its PSC(s) at Companies House. Recording this incorrectly — or failing to register at all — can result in fines and legal complications. Mint Formations guides all customers through PSC registration as part of the formation process.

What SIC code should I use when registering my company?

A Standard Industrial Classification (SIC) code describes the nature of your business. Choosing the wrong code can delay registration or trigger unexpected HMRC correspondence. Companies House provides a searchable list, but selecting the right one for your specific activity requires judgement. Mint Formations checks and advises on SIC code selection for every registration.

Do I need a company secretary when I register a UK limited company?

Private limited companies are no longer legally required to appoint a company secretary, but many choose to do so. A company secretary handles statutory filings, compliance deadlines, and Companies House correspondence. Mint Formations offers a full company secretary service and can advise whether appointing one is appropriate for your situation.

Can I use a PO box as my registered office address?

No. Companies House does not accept PO box numbers as registered office addresses. You must provide a full physical UK address where official correspondence can be delivered. Mint Formations’ registered office address service provides a compliant professional London address that satisfies this requirement while keeping your personal address private.

What happens after my company is registered?

After registration, your company has ongoing statutory obligations: an annual confirmation statement, annual accounts, Corporation Tax registration within three months of trading, and VAT registration if turnover exceeds the current threshold. Missing these deadlines carries fines and risks of a company strike-off. Mint Formations provides lifetime support to all customers — helping with compliance questions throughout the life of your business, not just at the point of registration.

How long does it take to register a UK company?

Companies House typically processes online registrations within 24 hours. As an authorised Companies House ACSP agent, Mint Formations submits all applications electronically, ensuring fast processing alongside a full pre-submission check.

Is it cheaper to register directly with Companies House?

The £100 Companies House filing fee applies regardless of how you register. Formation agents charge an additional service fee — Mint Formations starts from £4.99. However, the real cost comparison includes the value of a pre-submission check, compliance guidance, address privacy, and lifetime support. Errors made at registration are significantly more expensive to correct later — and some, like the wrong share structure, can create complications that take years to surface.

The bottom line

If you’re an accountant or solicitor who registers companies regularly, direct registration is built for you.

If you’re a business owner forming your first UK company, the most valuable thing you can do is get it right from the start. Not because the process is complicated, but because the decisions you make at registration stay with your business for as long as it exists.

Mint Formations has been an authorised Companies House agent for over ten years. In that time, we’ve helped more than 30,000 founders register their company correctly from day one — from first-time UK business owners to international entrepreneurs. We know what goes wrong when founders go it alone, because we’re often the ones called in to fix it.

Accountants and solicitors refer their clients to us not because we’re the cheapest option, but because we’re the ones still picking up the phone two years later. Lifetime support isn’t a feature we offer. It’s how we’re built.

The post Registering your new UK company directly with Companies House? Read this first. appeared first on Mint Formations Blog.

According to research, people develop solid impressions just seven seconds after an encounter, and it may just take one-tenth of a second to determine traits such as trustworthiness. With this in mind, it’s clear how powerful good branding can be and the importance of a good first impression.

In this guide, we’ll look at how to build a brand that conveys the essence of your business and helps you build meaningful connections with your customers.

What Is brand identity?

To put it simply, your brand is the big picture. It’s your visual assets, stylistic choices and tone used in your messaging — it’s all the things that impact the way your brand is seen by your target audience. It tells your customers who you are straight away and differentiates you from your competitors.

How to build your brand

Do your research

Your first step on your branding journey is to do your research. Find out things like who your target audience is and their unique pain points. Learn who your competitors are and look at what they’re doing. Is it working, or does it need to be improved?

Here are some easy research methods which will help inform your branding strategy:

1. Google your product or service: take a look at who is ranking in this space; these are likely to be some of your direct competitors.
2. Take a look at competitors’ social media accounts: how do they communicate with the audience? What kind of responses are they getting?
3. Look at subreddits for competitors: looking at forums such as Reddit is a great way to identify pain points if you’re launching a similar product. Use this to research how customers talk about the product and their feelings toward it. Can you make it better?
4. Create buyer personas of your ideal customer: get specific and include things like age, occupation, family and education. Keep these personas in mind every time you communicate with your audience.

Establish your brand positioning

Once you’ve done your research, it’s time to consider how you’re going to enter the market. Begin by creating a positioning statement that’s one or two lines that detail who you are and what you’re doing. It doesn’t have to be fancy, and it may be something as simple as: “We’re a hairdressing company offering affordable haircuts in [x].”

When creating your statement, think about how you’re going to stand out against your competitors. What are your USPs? Why are customers going to choose you over their competitors? This will help to inform your personality and tone of voice. For example, “affordable” in the statement above would make your messaging more friendly and approachable. Whereas if you were offering “luxury” haircuts, you’d use more sophisticated language.

Choose your business name

Now you’re equipped with the knowledge of who your audience is and your unique market position, you’ll need to decide on a business name. The right name should tell your customer who you are, so make sure you choose something memorable that will invoke the right emotions.

To help you get started, there are a few different types of business names you can choose from:

• Descriptive: include words that describe the business.
• Emotive: inspire emotional responses.
• Compound: combine words together, such as “Facebook”.
• Origin: names of where the business started or who created it.
• Initials and acronyms: easy to remember and catchy, BMW is a great example.
• Made-up words: words that mean nothing but sound great, for example, Adidas.

Create a list of names you like the sound of, and then use our name checker tool to see if they’re available to register with Companies House. You should also check the domain using a company like GoDaddy to see if it’s free and how much it costs to buy.

Write your tagline

Your slogan should be brief enough to fit into smaller spaces like bios and ads yet be descriptive enough to tell customers exactly who you are. Make it easy to remember and make sure it fits in with the rest of your brand.

Your slogan could be things like:

• A metaphor
• An attitude
• Description of what you do
• A key benefit
• Catchy saying.

Your tagline doesn’t have to be set in stone; it can change as much as you need. Coca-Cola has undergone 45 slogan changes over the years to evolve with the times. Their first ever tagline in 1886 was simply “Drink Coca-Cola”, and the latest is now “Real Magic”.

Choose your brand’s look

Now it’s time for the fun part — building your brand and choosing your look. It is vital to get this down before you start creating your website and setting up any social media accounts.

Colours

When choosing your colours, you should always make sure they’re different from your competitors, as you don’t want to make things confusing. It may even be a good idea to choose something completely different and contrasting so you really stand out.

But did you know that aside from making you stand out, colours can portray a feeling? This unique science is known as colour psychology, and it’s really quite powerful. Here are the meanings behind certain colours:

• Yellow: optimistic and warm.
• Orange: cheerful and confident.
• Red: exciting and passionate.
• Purple: creative and smart.
• Blue: trustworthy and strong.
• Green: healthy and peaceful.
• Black/White/Grey: balanced and calm.

If you’re starting a business that sells camping gear, you may want to pick green for the peaceful connotations. Whereas if you’re starting a spa, you may wish to choose white for your branding to take advantage of the feelings of calm and balance.

Fonts

Fonts are often an overlooked part of building a brand, but they can communicate your personality just as well as images. For example, bold styles can communicate strength, serif brings feelings of authority and script fonts are generally construed as being playful.

Don’t make things confusing and choose lots of fonts; instead, pick one for the body and another for the header, making sure that they complement each other.

Create your logo

Think of your logo as the face of your business. It’s the first thing customers will see when they encounter your brand, so be sure to make it stand out. It should be completely unique so your audience can tell it’s you at a quick glance. It will also need to work at all sizes as your logo will be present on your website, social media profiles, favicon and potentially your product packaging, too.

There are several different types of logos to choose from, some of the most popular ones being:

• Abstract: shapes and colours rather than meaning.
• Mascot: a person’s face or animal; this can humanise your business.
• Emblem: usually circular and combines text with imagery.
• Lettermark: symbol from one or more letters of a brand name.
• Icon: a visual representation of the brand.
• Wordmark: just the name of the brand.
• Combination: may include a mix of two mediums, such as text with an icon.

Integrate your brand into your business

Once you’ve finalised how you want your brand to look and feel, it’s time to integrate your brand into your business. Start by creating a style guide, as this will help to ensure your voice and presence are consistent throughout. Make sure you include how you want your brand to look and feel, and remember that your personality should shine through in every word, image and post.

Monitor and learn

There’s a possibility that you won’t get your branding right on the first try, and that’s okay. Monitor how your brand performs and gather feedback from your customers about how they feel about your brand — and don’t be afraid to change things if it’s not working. Logos can be changed, taglines rewritten, and colour schemes reworked. Your brand shouldn’t be static; it should be relevant and evolve with your business and the times.

Ready to get started with your new business? Register your company with Mint Formations today and get your new venture off to the best possible start. If you have any questions, please get in touch with our team, and we’ll be happy to help.

The post From concept to creation: A step-by-step guide to creating a brand in the UK appeared first on Mint Formations Blog.

Where the appeal of working for yourself is easy to see, figuring out what business you should start can be tricky. In this guide, we look at the key considerations you need to consider and provide some ideas for businesses you can start quickly.

6 Considerations before choosing a business idea

Picking a business idea should take careful consideration, and it’s not something you should rush into. Before getting started with the brainstorming phase, consider the following:

Will you need any training?

To make your life easier, choose something you already have experience in or at least are passionate about. Consider whether you already have the knowledge to get started or if you’ll need to undertake further qualifications. Ideas that require less training will be easier and less costly to launch. 

How much will it cost to set up?

Next, you need to consider how much you’re prepared to pay to set up your business. Make a list of what you’ll need to get started, perhaps a website? Desk and workstation? These costs can add up quite quickly.

Do you need inventory or supplies?

If you’re going to be selling physical goods, you’ll need some form of supply or inventory before launch. Depending on what you intend to make or sell, these costs can be quite considerable. At first, making or purchasing small batches may be a good idea until you start to see a profit.

Where will you be working?

Would you prefer to work from home, or do you need to think about renting an office or workshop? If your work will take you out of home, consider transport costs and how far you’re willing to travel. 

Is there demand for your business?

Demand is what will influence whether your business soars or plummets. This is perhaps the most important thing to consider when thinking about what business you can start. Spend time researching your idea and the area where you intend to market it.

Do you have something new to offer?

Have you got a completely new product or service that no one else has yet? Or maybe you or someone you know had a bad experience with a company and know that you can do better? You need to make sure you’re doing something different to your competition.

What business should I start?

The key to a successful business is working out what you’re good at and finding your niche. It’s helpful at this stage to list your qualifications and key skills and consider whether they lend themselves particularly well to certain careers.

If you’re struggling for inspiration, we’ve rounded up some ideas for small businesses that you can get started with little or no set-up fees.

Practical small business ideas

Handyman

Can you fix just about anything you put your hands on? Then, a handyman business may work for you. Start-up costs are small, you’ll need to create a website, do some market research to determine how much to charge, and buy tools if needed. 

The good news is you won’t need any special education for this job, but it is a good idea only to offer services that you’re skilled enough to perform. Also, don’t forget to take out insurance so that you’re covered in case something goes wrong. 

Landscaper/Gardener

If you have a bit of a green thumb and enjoy gardening, landscaping can be a very lucrative business. Around 87% of British homes have a garden, and lifestyles are often too busy to mow lawns and trim trees regularly. 

Consider starting small by providing straightforward services such as lawn mowing and weeding, and you can then build up your offering to more technical tasks. You could even undertake a landscaping course later on to gain more experience. 

To get started, you’ll just need tools and suitable clothing. You’ll also need a car with enough space to take tools from job to job if you’re using your own.

Cleaner

Cleaning businesses are booming, and according to research conducted by The British Cleaning Council (BCC), one in ten homes now employ a domestic cleaner. It’s very easy to get started with this type of business, and you can do it alone as a sole trader while you build up a client base. You could offer specialist services, such as deep spring cleans and end-of-tenancy cleaning, to set your business apart. 

Before getting started, carry out some market research to figure out the going rate for your area. Then, once you’re ready to get your business out there, print flyers, post them through the doors of your area and post your services to local Facebook groups. You’ll find that word of mouth is a very powerful marketing tool when you’re established.

Start-up costs are very low. You’ll need cleaning materials and potentially transport if you intend to work beyond your immediate area. 

Car detailer

If you’d prefer to take your cleaning services on the road, why not consider opening a car wash or detailing service? You could choose to carry out mobile services or rent a location to offer cleaning. We’d recommend researching before renting somewhere to determine whether there’s more demand for mobile car detailing in your area. Who knows? Maybe you’ll be the first.

You don’t need professional qualifications to open a car detailing business, and start-up costs are minimal as you’ll just need cleaning supplies.

Pet and house sitter

Over half of UK households own a pet, and most will need to hire someone to care for them when they go away. Pet sitting services are fast becoming a more popular alternative to catteries and kennels as they’re far less stressful for pets and owners alike. 

With this type of business, you’ll likely go to the client’s home and stay for an agreed-upon period. Tasks will include general pet care, and there may be added home chores on top, such as watering plants and putting bins out.

You don’t need qualifications to get started, but it’s a good idea to take a pet first aid course as a minimum, and, as you’ll be in private residences, a DBS check will often be requested, too. Additionally, make sure that you take out appropriate insurance. 

Home-based business ideas

Online tutor

Ever since the pandemic, there’s been an increase in demand for quality online education. It’s a highly convenient way to teach and learn, as everything is done online, so there’s no overheads for travel or classroom hire. Also, you can expand your client base and teach worldwide. 

Where you need qualified teacher status (QTS) to teach at primary and secondary level, you don’t need this for further education or early years. However, you should only teach subjects you have a thorough understanding of and in some cases, a degree in the field may make you more hireable. 

If you’re not adept at a specific topic, consider teaching English as a foreign language to students overseas. You will need a TEFL qualification, but training courses are very affordable.

Consultant

If you’re a marketing mogul, social media whizz or SEO specialist, becoming a consultant for other businesses could be a great option. With this career, it’s helpful to have contacts in the industry before getting started and make sure you spend some time developing a thorough marketing plan to attract more clients. 

Your time is your biggest investment with this career model, but you’ll also need a website and subscriptions to any tools you need to carry out your work.

Dropshipper

Dropshipping is one of the most straightforward businesses to get started, and with the average dropshipper making £2,000 a month, it can be a good source of income when done right. It’s relatively low-cost and hands-off as it involves third-party suppliers shipping products to customers on your behalf. 

You won’t need to store or handle products; you only need to find a niche and curate products from quality suppliers in your online shop. You’ll have to handle your own marketing and customer service, so it’s vital you work with trustworthy suppliers.

Dropshipping is also a great way to test the waters with certain products before spending time and money launching an original offering.

Freelancer

If you have experience in creative or tech industries, why not turn your skills into a small business and go freelance? As of 2022, there are 1.9 million freelancers in the UK alone, making up almost half of the solo self-employed population. 

There are plenty of careers you can take freelance, including writing-based professions like journalism, copywriting, and even authoring. A good grasp of English and impeccable spelling and grammar skills are essential, and in some cases, it may make you more of an asset if you possess an English degree. 

If you’re more technologically inclined, web development could be a good option. You’ll need to be well-versed in coding languages such as HTML, CSS and Javascript, but no formal qualifications are needed. You can even take boot camp courses to learn the fundamentals.

Crafter

Maybe you’re a baker or, perhaps, a candlestick maker? Whatever your talent or craft, you can market it and create a unique small business idea. For example, the UK candle business is currently valued at a sizeable £1.9bn, so there’s certainly demand for quality, artisanal goods. 

Start with creating small batches or even making items to order. This way, it can be done at home and requires little start-up cost while you gauge demand. Try selling products on Etsy initially, and once you build a reputation, you can build your website and sell products using e-commerce platforms like Shopify. 

Things to consider when selling homemade goods are shipping, inventory management, and the time it takes to make things. Additionally, if you intend to create products to put on the skin, you’ll need to bear regulations in mind, too.

Final tips for starting your new business

• Find your niche: Good marketing can make or break a business, so you need to ensure there’s a demand and, if competition exists, you can do it better.
• Price carefully: Pricing isn’t as simple as making your products cheaper than the competition. If prices are too low, you’ll risk customers thinking your products are inferior, whereas if they’re too high, they’ll likely shop elsewhere.
• Don’t forget shipping fees: If you’re selling physical products, you’ll need to consider shipping costs on both your and the customer’s end. You may want to include these costs in the item’s price and offer free shipping as a USP or create promotions to encourage customers to spend over a certain amount to qualify for free shipping.
• Always be learning: Starting a new business is a learning curve, so be prepared to learn and adapt. Products may need to be swapped, ingredients might have to be changed, websites may have to be redesigned, and prices might need to be reconsidered. Take the time to review your performance and think about how you can do better.

Ready to get started? Register your small business with Mint Formations today and get off to a flying start. We offer comprehensive company formation packages designed to take the stress out of beginning your new journey. 

The post What business should I start? A straightforward guide to finding your niche in the UK market appeared first on Mint Formations Blog.

It can seem daunting, but learning about tax doesn’t have to tax your brain. Here we will explore the different types of UK business taxes, including Corporation Tax, Value Added Tax (VAT) and National Insurance Contributions (NICs), so you can fly through your tax returns. 

Different types of UK business taxes

Corporation tax

Corporation Tax is a tax levied on the profits of limited companies and some organisations operating in the United Kingdom. It applies to resident and non-resident companies with a permanent establishment or business activities within the UK. The tax is calculated based on the company’s taxable profits, which are the profits earned from its trading activities, investments and any other sources of income.

Corporation tax (CT) is forecast to raise £74.4 billion in 2022/23. It is the fourth largest contributor to government tax revenues after income tax, National Insurance contributions (NICs) and VAT. Nearly all corporation tax receipts are accounted for by onshore CT, which is forecast to raise £68.1 billion in 2022/23.

Corporation Tax has several key features that small business owners should be aware of. 

In the Spring 2021 Budget, Chancellor Rishi Sunak significantly changed the corporate tax system. The main highlights include raising the tax rate from 19% to 25% for companies with profits over £250,000, starting from April 2023. 

A separate rate of 19% was introduced for companies with profits under £50,000, with a tapered rate for businesses earning between £50,000 and £250,000. The budget also introduced a “super-deduction” allowing companies to claim a 130% first-year capital allowance for new plant and machinery investments until March 2023. This initiative aims to encourage business investment and stimulate economic growth. 

Additionally, a two-year extension was granted for “loss carry-back,” enabling companies to offset losses against previous years’ profits. The reforms were initially projected to raise £11.9 billion in 2023/24, increasing to £17.2 billion by 2025/26. However, in September 2022, the plan to increase the tax rate was cancelled but later reinstated by Chancellor Jeremy Hunt in October 2022 for implementation from 6 April 2023.

Value added tax (VAT)

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production and distribution. It is charged as a percentage of the final selling price and is collected by VAT-registered businesses on behalf of the government. Small companies must determine whether they need to register for VAT based on their taxable turnover.

For most small businesses, the standard VAT rate of 20% applies to their products. However, two other types of VAT may apply:

• Reduced Rate VAT: This is a 5% VAT rate that applies to luxury necessities such as car seats for children, energy-saving activities, certain fees for charities and mobility aids for older adults.
• Zero Rate VAT: This is a 0% VAT rate where no VAT is charged on sales. Zero-rated products and services are considered essentials and include various types of food, children’s clothing, bookings, medical supplies and equipment.

It is important to record both these rates, including zero-rated products, on your VAT return. However, goods and services exempt from VAT, such as medical services, finance and credit and charity fundraisers, do not need to be recorded for VAT purposes.

You can refer to the government website for a comprehensive list of items categorised under reduced rate, zero rate and VAT exemption.

VAT registration thresholds determine when a business is required to register for VAT. As of the current threshold, you must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period. However, it’s important to note that these thresholds are subject to change, so it’s crucial to check for any updates from HM Revenue and Customs (HMRC).

VAT operates through a system of input and output tax. Input VAT is the VAT paid on purchases and expenses related to your business activities, while output VAT is the VAT charged on your sales. The difference between the two (output VAT minus input VAT) is either payable to or reclaimable from HMRC, depending on the situation. Understanding how to calculate and account for input and output VAT is vital for managing your VAT obligations effectively.

Although taxation is mandatory for all UK businesses, not all companies must register for VAT if they do not meet the threshold. The Office for National Statistics (ONS) reports that only 45% of businesses are registered for VAT or Pay As You Earn (PAYE). However, some companies voluntarily register for VAT to take advantage of the benefits associated with being a VAT-registered business.

Related Reading: The Advantages and Disadvantages of Voluntary VAT Registration

National insurance contributions (NICs)

National Insurance Contributions (NICs) are payments made by employees, employers and self-employed individuals to fund various state benefits and services. NICs are relevant to small business owners who are self-employed or have employees. They help fund essential benefits like the state pension, statutory sick pay and maternity pay.

NICs are divided into different classes, each with its own rules and rates. Employees and employers pay Class 1 NICs, while Class 2 and Class 4 NICs apply to self-employed individuals.

Class 1 NICs are calculated based on the employee’s earnings, and the employer and employee contribute to these contributions. Class 2 NICs are flat-rate contributions paid by self-employed individuals who earn above a certain threshold. Self-employed individuals pay Class 4 NICs on their profits above a specific threshold.

NIC class (Tax year 2023/2024)

NICs are subject to changes and updates by the government. It’s essential to stay informed about any recent updates or changes to ensure compliance with your NICs obligations. Changes could include adjustments to rates, thresholds or additional allowances that may impact small business owners.

Understanding the different types of UK business taxes is essential for small business owners to manage their tax obligations effectively. By having a solid grasp of Corporation Tax, VAT and NICs, you can ensure compliance, make informed financial decisions and maximise available tax reliefs and allowances.

Tax obligations and deadlines

Record-keeping and bookkeeping requirements

Accurate record-keeping is crucial for small business owners to fulfil UK business tax obligations. It helps you maintain a clear financial overview, ensures compliance with tax regulations and simplifies the process of filing tax returns. Good record-keeping also enables you to track deductible expenses, claim applicable tax reliefs and provide evidence in case of an audit.

To meet your tax obligations, you need to keep and organise various financial documents. These may include invoices, receipts, bank statements, payroll records, expense reports and other documents related to your business’s income and expenses. Retaining these records for the required period, usually at least six years, is crucial.

Self-Assessment tax returns

Self-Assessment Tax Returns are how individuals report their income and calculate the tax they owe. As a small business owner, you may need to file a Self-Assessment Tax Return to report your business income, alongside any other personal income you may have. This includes self-employment income, dividends, interest, rental income and capital gains.

Staying aware of important dates and deadlines is crucial to avoid penalties and interest charges. The tax year in the UK runs from April 6th to April 5th of the following year. Here are some key dates to keep in mind:

• April 6th: Start of the tax year
• October 5th: Deadline for registering for Self-Assessment (if you’re newly self-employed)
• January 31st: Deadline for filing online Self-Assessment Tax Returns and paying any tax owed for the previous tax year.

It’s essential to be proactive and prepare your tax return well before the deadline to allow enough time for accurate completion and any necessary adjustments.

When completing your Self-Assessment Tax Return, avoid common mistakes that can lead to errors or penalties. Some common mistakes to watch out for include:

• Mathematical errors in calculations
• Forgetting to include all sources of income
• Failing to claim eligible expenses and tax reliefs
• Misreporting income or expenses
• Not keeping accurate records to support your tax return
• Taking the time to double-check your tax return and seek professional advice if needed can help you avoid costly mistakes and ensure accurate reporting.

Related Reading: When Is the UK Tax Self-assessment Deadline?

Tax deductions and allowances for small businesses

Allowable expenses

Allowable expenses are legitimate business costs that can be deducted from the business’s income to reduce taxable profit. These expenses must be incurred wholly and exclusively for business purposes. Common examples of allowable expenses for small businesses include rent, utilities, office supplies, marketing expenses, professional fees and employee salaries.

Specific examples of allowable expenses can vary depending on the nature of your business. For instance, if you run a retail business, allowable expenses may include inventory costs, packaging materials and shop maintenance. If you’re a freelance writer, allowable expenses might include computer equipment, software subscriptions and professional development courses. Keeping accurate records and retaining supporting documentation for all permissible expenses is essential.

Capital allowances

Capital allowances are deductions that businesses can claim on certain types of capital expenditure, such as purchasing assets used in the business, like machinery, vehicles or computer equipment. Instead of deducting the total cost of the asset in one go, you can claim capital allowances over a period of time. This helps to reduce your taxable profit and provides tax relief for investments in business assets.

Not all business assets qualify for capital allowances. Eligibility depends on the type of asset and the specific capital allowance scheme. Some common assets that may be eligible for capital allowances include machinery, equipment, vehicles, fixtures and fittings and certain types of renovation or improvement costs for commercial properties.

Research and development (R&D) tax relief

The Research and Development (R&D) tax relief scheme is designed to incentivise innovation and technological advancement. It offers tax relief to companies that undertake qualifying R&D activities. This scheme applies to small businesses engaged in innovative projects that seek to advance science or technology, including new product development, process improvement or finding solutions to technical challenges.

To qualify for R&D tax relief, your business must meet specific criteria set by HMRC. The requirements include undertaking activities that aim to achieve scientific or technological advancements, facing technical uncertainties and employing a systematic approach to resolve those uncertainties. Small businesses can claim either the SME R&D relief, which provides enhanced deductions for R&D expenditure, or the Research and Development Expenditure Credit (RDEC) scheme, depending on their size and circumstances.

Claiming R&D tax relief can provide significant benefits for small businesses. It helps reduce innovation costs, encourages research and development investment and can provide a valuable cash flow boost. Depending on the scheme and the specific circumstances, you may be able to claim enhanced deductions or receive a tax credit.

Seeking professional advice about UK business tax

At Mint Formations, we specialise in helping small business owners navigate the complexities of UK business tax. Our dedicated services are designed to provide comprehensive support and guidance throughout the tax journey. 

We offer a comprehensive and hassle-free all-inclusive core accountancy service specifically tailored for limited companies in the UK. We believe a core accountancy service goes beyond mere paperwork and filing obligations. When you choose our service, you gain access to ongoing support and the opportunity to seek professional tax advice whenever you need it.

As part of our service, we will assign a dedicated senior accountant as your main point of contact. This expert will always be available to answer your questions and address any concerns.

Our core accountancy service includes the standard filing of all company accounts and tax returns. However, we go above and beyond by providing additional services at no extra cost, ensuring you receive excellent value for your money. We are committed to supporting you comprehensively throughout your business journey.

Included in our core accountancy service package:

• Company year-end accounts (including Companies House filing)
• Company corporation tax return (to HMRC)
• Dealing with HMRC and becoming your authorised agent
• Company annual confirmation statement filing (with Companies House)
• Company secretarial services — e.g. filing changes to company officers, address or structure
• Registering director(s) and shareholder(s) with HMRC for self-assessment
• Filing self-assessment tax returns with HMRC for director(s) and shareholder(s)
• VAT registration
• Ad-hoc ongoing advice
• Legal tax planning discussions
• Management accounts
• Payroll (including annual payroll for directors)

Optional extras:

• Filing quarterly VAT returns
• Bookkeeping and management accounts preparation

Explore our legal and business packages today, and let us help you with your UK business tax and accounting. If you have any questions, feel free to contact us. We’re always happy to help.

The post Navigating UK business tax: What you need to know as a small business owner appeared first on Mint Formations Blog.

The UK is one of the largest economies on Earth. It’s the sixth richest country in terms of GDP, with one of the highest wealth per capita of all the economic superpowers. With a very stable economic system, extensive legal structure and diverse consumer market, every entrepreneur dreams of starting up a UK business.

But if it’s not difficult, how exactly do you do it?

This guide from Mint Formations explains how to start a small business in the UK. We’ll look at how you can start a limited company, the need (or lack of) for an entrepreneur visa and all other factors that international entrepreneurs want to know.

Skip to what you need to know:

• The Benefits of Starting a UK Business as a Foreign National
• Can a Non-Resident Start a Business in the UK?
• Important Things to Know about Starting a Business in the UK as a Foreigner
• How to Start a Business in the UK as a Foreign National
• Start a UK Limited Company Today with Mint Formations

The benefits of starting a UK business as a foreign national

Are you thinking about starting a business in the UK but not unsure if it’s the right decision? If you’re a non-resident, several benefits come with starting a business in the UK.

Access to European markets

One of the significant benefits of starting a business in the UK is that you will have access to the European market. With over 500 million consumers, the European market is one of the largest in the world.

UK businesses export over £16 billion of goods and services to Europe annually. So, if you’re looking to tap into this vast market, starting a business in the UK is a great option.

Skilled workforce

Another benefit of doing business in the UK is having access to a skilled workforce. Over 30 million people are employed in the UK, with a large proportion working in skilled occupations, giving businesses access to a large pool of talented workers.

In addition, the UK has one of the highest employment rates for university graduates in Europe. So if you are looking for highly educated employees, starting a business in the UK may be the right choice.

Low taxes

The UK also has favourable tax rates for businesses. The corporation tax rate is 20%, which is lower than many other European countries. In addition, numerous tax reliefs and exemptions are available for businesses operating in specific sectors, such as research and development or environmental protection. This makes it an attractive destination for companies seeking to minimise tax liability.

Consumer credibility

When running a business, building trust with your potential customers is crucial. After all, if they don’t trust you, they won’t hand over their hard-earned cash. One of the best ways to do this is to register your business in the UK. This sends a strong message that you’re a legitimate and trustworthy company. 

But it’s not enough just to register your business — you must also ensure your registered address appears legitimate. One of the best ways to do this is to register your business from a London address. A London postcode is a quick and easy way to reassure potential customers that your company is based in the UK’s capital city and is, therefore, likely to be legitimate and trustworthy.

Can a non-resident start a business in the UK?

Yes. It may come as a surprise, but anyone of any nationality can start a business in the UK. 

You don’t need residential status or even to be living in the country. The only stipulation is that the company must be registered to a UK address. This is for accountability and information correspondence, not for legitimising the business’s ownership.

Foreign nationals can easily acquire an address to register with Companies House. This can either be a purchased or rented property, the property of a friend, family member, or anyone who agrees to have your business registered to their address, or a virtual office address. Mint Formations can help you secure an address for your business.

Does a non-resident need a visa to start a UK business?

There is no need for a visa to establish a business in the UK. When you set up a business, you are not required to provide proof that you can work. Does this mean you can start the business and then travel to the UK and work under your own company name? No, it doesn’t.

You can start a business in the UK, but that does not give you the right to work in the UK. For example, you cannot start an electrical engineering business, then forgo working visas and start earning money as a member of the UK workforce. It’s just not possible.

Making money through your UK limited company without a work visa

Work visas give you access to the UK job market. They allow you to earn money as an employed member of the UK job market and enjoy all the perks that come with it. To access this, you must have the proper visa. 

But you can still start a business in the UK and earn money from it without a visa. Let’s take a look at how it works.

There are two things you can do. By starting a business in the United Kingdom as a foreigner, you can actively trade goods through that business while working out of your home nation. 

An example would be if you live in India and sell fashion products. You can start a business in the UK, register with Companies House and trade under that British brand. Your registered UK business does not make it easier to trade within the UK, as you can already sell to UK consumers from a company registered in India.

The benefit it does offer is that you’ve got a UK company. You aren’t a foreigner trading through a foreign business. You’re a foreigner trading through a British business, which gives your brand more sales power within the domestic market.

The other thing you can do is hire people allowed to work within the UK. They can then make money through your business in the UK, earning you profits on that income. You cannot work without the visa, but since your employees have the right to, they can.

You’ll pay tax on their earnings just as any other business would and corporation tax on business income, but you’ll be able to take a salary from revenue after tax is deducted just like any other UK business director.

Important things to know about starting a business in the UK as a foreigner

So you don’t get caught off-guard, be aware of these essential nuggets of information when setting up a UK business.

You don’t need a business bank account (But you should get one)

It is not a legal requirement for a non-British national to register a business bank account in the UK. However, it is very helpful. If you register for a UK bank account, you can avoid many costs in terms of money movement and fees for local trade.

Having money paid into your domestic bank account is not financially efficient as banks often charge a fee for international transfers — these can take away a big chunk of profit.

We recommend signing up for a UK bank account to improve money management. You should note that applying for more popular banks is difficult for foreign nationals without an entrepreneur visa. If you work with us at Mint Formations, though, we make partnership arrangements with banks to help progress your application and secure you a bank account, including Lloyds and Barclays bank account. 

Read our complete guide on how to open a UK bank account. 

You cannot earn untaxed income

When you start a new business in the UK as a foreigner, you are not entitled to the self-employed personal allowance grant unless you have a work visa. This means you pay tax on every penny you earn from your business.

You may also have to pay income tax in your home nation. Tax costs can start to ramp up if you’re not careful about managing your cash. We can put you in touch with expert accounting teams to help you optimise earnings.

If you’d like to know more about tax in the UK, watch these handy, easy-to-understand videos.

You don’t have to set up your business yourself

The registration of UK companies may appear straightforward, but it can quickly get confusing if you aren’t familiar with the basic legal structure and UK business practice. Starting a business requires applying for numerous government approvals, including from Companies House and HMRC.

If you try to register yourself and make a mistake, you won’t be blacklisted or blocked from ever starting a business as a foreign national again, but you will face slowdowns and related costs.

The best step you can take to mitigate problems with setting up a business in the UK as a foreign national is to employ the support and services of an agent that already has experience with Companies House. Mint Formations can help you register a company in the UK as a non-resident.

Want to know more about formation agents? Read our complete guide to company formation agents for new business owners. 

You’ll want insurance set Up after starting a business in the UK

Once you open your UK business, you’ll want to grab some insurance quickly. Business insurance is a protective measure that helps you navigate the sometimes turbulent landscape of UK markets. Depending on what industry you enter, you may be liable for more responsibilities than others.

Insurance can give you reassurance and peace of mind that if anything goes wrong, you’ll have support. Registering for business insurance is not essential or mandatory, but if you’re unfamiliar with UK systems, it can be an important safety net.

Ready to set up your UK business? Explore Mint Formation’s non-resident company formation packages today. 

How to start a business in the UK as a foreign national

To register a limited company as an overseas national is no different from that of a British national. You have to provide all the same details and file the same documents. There are no immigration hoops to jump through, and the process is free of additional charges for non-residents.

So how do you register a company as a foreign national? First, you’ll need the following:

• Company name — Every business needs a unique name. You can use the Mint Formations name check tool to find the perfect name for your company.
• Business address — You must have a UK address registered to your business. If you don’t have access to a UK address, we can help you by registering your business at one of our prestigious London address.
• Director information — A UK company needs at least one director, although there can be more. Details of this individual need to be gathered and prepared.
• Shareholders — If you are registering as a public trading company, you’ll need to issue shares when you start your business. To do this, you need at least one shareholder and all their details. This can be the director or a different individual.
• Documents of formation — When registering a business, you need two sets of documents: a memorandum of association and articles of association. These documents are essentially agreements of responsibility by involved parties and arrangements on how the business should be run. At Mint Formations, we’re more than happy to help you put together these documents.

Once you’ve followed the steps of collecting all the information you need, you can move on to registration with Companies House and HMRC. Remember, you can change any of the details above if you need to at any point after you form your company.

For example, the business address you use now can be changed if you move to the UK in the future, or if you decide to sell your business, you can complete a form that allows you to transfer ownership of the business.

Start a UK limited company today with Mint Formations

At Mint Formations, we understand this may all seem very complicated. If you need help setting up your business as a foreign national, don’t despair. We offer complete registration support for non-residents for as little as £129 + VAT. 

This covers everything, from registering your business with Companies House and HMRC to providing you with a registered business address and helping you establish a UK bank account.

Discover the perfect service for non-UK residents who want to start a business in the UK.

The post How to start a UK business as a foreigner appeared first on Mint Formations Blog.

That’s our philosophy at Mint Formations. It’s this way of thinking that sets us apart from other company formation agents out there. And as our customer reviews illustrate, it’s an approach that UK business owners seem to really appreciate.

There is no shortage of company formation services to choose from; all of whom will promise to dot the Is, cross the Ts, and get your company set up. These formalities are obviously important (and we certainly ensure everything is covered!). But we also appreciate that getting your new company off to the right start requires more than this.

Looking after your new company as if it was our own. Access to exactly the right kind of support at the right time. Straightforward pricing and no hidden charges. These are just some of the things you can expect.

Here’s a closer look at some of the elements that make us different from other company formation agencies…

Friendly service with a personal touch

With a lot of company formation agencies, the process can sometimes feel like being on a conveyor belt. You sign up, pay your fee, complete the details, get added to “the system” – and that’s pretty much it.

This kind of corporate, highly-standardised approach to company formation works for some, but it’s not really what we’re about. At Mint, we work more like a family-owned company formation service on your high street, offering a professional, reliable service with a personal touch. We take care of registering your company with the same level of care as if we were establishing our very own business.

Real-time support from real people

You just need to double check something in the Articles of Association. You need to make a quick change to the shareholder agreement. You’ve got a question about company trademarks. Or maybe you just want an update on timings so you can plan your diary…

In all of these instances, the last thing you need is having to work your way through a chain of recorded messages, or try to explain things to a robot.

With Mint, real-life expertise is just a phone call – or FaceTime session – away. Our knowledgeable support team is on hand to answer each and every query, big or small. And if it’s a complex query requiring more detailed input, we can put you directly in contact with someone who will deliver exactly the information you need.

A straightforward application process

We can either guide you through the company registration application for you to complete yourself, or we can do it on your behalf: whatever works best for you.

While most other company formation agencies require you to struggle through the terms, rules, and associated jargon, we aim to keep it as simple as possible. The result? Everything is covered, while also ensuring that your new company is set up in such a way as to match your business goals.

A complete solution for your startup

Getting a company registered with Companies House isn’t a standalone process. It’s just one of many things you need to think about as you get your business off the ground or take it to the next growth stage.

Choosing the right company name, protecting your IP, getting tax and accounts in line, securing your first customers, setting up a bank account: it can feel like lots of things are happening all at once. It’s exciting, but often daunting, too.

Mint Formations understands this better than anyone. And we’re proud to be able to support up and coming businesses, right from company formation through to accountancy services, and much more.

Here are some of the areas where we can provide support, either directly or through our network of trusted partners…

• Company formation (naturally!) You can view and compare our complete range of packages here.
• Accountancy Each of our company formation packages includes a free consultation with an accountant, setting you on the right path on tax and accounting obligations. We also offer an all-inclusive core accountancy service, making it as easy as possible to manage your tax and reporting requirements.
• Management portal 100% free access to our easy-to-use company manager portal: the simplest way to keep on top of your Companies House filing obligations.
• Banking We can fast-track your free business bank account through your choice of Lloyds or Barclays
• Registered office and director service address. Give your new company a professional edge, while protecting your privacy.
• Creating and boosting your online presence Covering website design, e-commerce, logo design, SEO, and more, Mint’s partnership with Integra Business Web Services helps you access everything you need to attract new customers online, and gain a competitive edge.
• Professional and operational support For business insurance, phone answering, and virtual assistant services, you can take advantage of our partnership arrangements to get the support you need.

What next?

Explore our company formation packages to get your business off to the right start. Got a query? Message or call Mint Formations direct, and discover for yourself what makes us different.

Frequently asked questions

What should I look for in a UK company formation agency?

We would strongly advise that you avoid company formation agencies that rely on a one-size-fits-all, conveyor belt approach to setting up a company.

Does the agency have an easy-to-understand process for registering companies? Are they open and transparent when it comes to charges? Will I be able to speak to someone if I have a query? Do they offer comprehensive post-formation support? These are some of the questions you should ask.

And most importantly, don’t just take their word for it; check out independent reviews.

Which site is best for company registration?

We are obviously slightly biased. That said, there are some very good reasons why Mint Formations attracts such a high volume of 5-star reviews from UK business owners. Fast, efficient service, help on hand when you need it, support for some of the trickiest aspects of getting a business off the ground and keeping it running smoothly: these are just some of the reasons why Mint Formations enjoys such a strong reputation.

The post How is Mint Formations different from other UK formation agencies? appeared first on Mint Formations Blog.

Want to turn your business into a separate legal entity? Companies House is the body that creates your new company and adds it to the register. It’s where you submit your annual confirmation statement and information relating to changes to your business. Crucially, Companies House also makes key information accessible to the public, so potential customers can see that your business is genuine.

Here’s a closer look at Companies House and why it’s important – along with answers to some common Companies House-related questions.  

What Is Companies House?

Companies House is the name for the UK’s company registrar, responsible for incorporating and dissolving companies, and for maintaining an up-to-date register of company information. It operates as an executive agency of the Government’s Department for Business and Trade.

Do I need to register with Companies House? 

Every type of public and private company in the UK is required to be registered with Companies House. This includes the following: 

• Private limited companies (the most common type of company)
• Public limited companies (PLCs)
• Limited liability partnerships (LLPs)
• Foreign companies with a UK branch, and those which carry out significant business activities in the UK  

Each year, Companies House handles more than 500,000 new company incorporations. Tip: to see why so many business owners decide to ‘go limited’, check out our guide, How to Change from Sole Trader to Limited Company.

What does Companies House do? 

The main functions of Companies House are as follows: 

Incorporation 

Companies House administers registration applications, checking that the details are complete and correct and that applicants are who they say they are, before creating new companies and adding them to the register. For a summary of the information you need before applying to register a company, read our Company Formation Checklist.

Once Companies House has approved your application and added your new company to the register, it issues you with a Certificate of Incorporation, confirming your official company number and date of incorporation. 

Record keeping 

Companies House is where you file key information relating to your business: i.e. your annual accounts and confirmation statements, changes to company details (e.g. change of registered address or appointment of a new director), company resolutions, and changes to the articles of association. This information is made accessible to the public via the free Companies House online search service. 

Dissolution 

Directors can apply for voluntary dissolution if they decide that their company is no longer needed. In cases of non-compliance, e.g. where a company fails to submit its annual filings, or where a company appears to be dormant (no longer trading), Companies House will start the process of dissolution; i.e. issuing notices, before striking it from the register. 

Why is Companies House important? 

Companies House performs three important roles at once: a supporter of businesses, an enforcer of the rules relating to setting up and maintaining companies, and a source of reliable information. 

Supporting businesses 

No mountains of paperwork. No long delays. No eye-watering costs. Instead, Companies House aims to deliver a clear and fair framework for getting companies set up and keeping them running. It (mostly!) succeeds with this. 

Thanks to this, setting up a company becomes a viable option for pretty much anyone. Once your company is set up under your unique name of choice, it becomes a legal entity with its own status and rights: no one else can claim the company name as theirs. 

Enforcing the rules 

Companies House monitors whether companies are sticking to the rules. Failure to comply with your filing obligations – notably, timely submission of annual accounts and confirmation statements – can lead to Companies House imposing penalties, fines, and even striking off companies in default. 

This isn’t about trying to catch companies out just for the sake of it. These obligations are designed to encourage good corporate governance practices, weed out sham businesses, and prevent fraud. 

Providing information

Is this business legit? Who’s behind it? Does it seem like a safe pair of hands? 

Through the Companies House search page, anyone can search for and instantly view essential company details, including registered office address, company status, details of directors and persons of significant control, and companies’ filing history. 

Once your business is incorporated, it becomes possible for customers, investors, and suppliers to verify your details via the companies register. Incorporation is therefore a highly useful trust indicator. 

How much does it cost to register a company with Companies House? 

As of 1 May 2024, the Companies House fee for incorporation is £50 if you do it online, or £71 if you submit it by post. A full summary of the latest fees is available here.   

With formation packages starting at just £54.99 inclusive of the Companies House fee, Mint Formations ensures that dealing with Companies House is as straightforward as possible. To select the right level of assistance for getting your new company off to the right start, explore our registration packages.

Frequently asked questions

What does Companies House do? 

Companies House is the UK’s registrar of companies, responsible for incorporating and dissolving companies, receiving, checking, and publishing company information, and ensuring that companies comply with their governance obligations, including the filing of annual accounts and confirmation statements. 

Is Companies House part of HMRC?

No, the Companies House and HMRC are separate government bodies. You deal with Companies House for setting up your company, annual filing obligations, and notifications relating to important changes to your business. You deal with HMRC in relation to business tax, i.e. corporation tax, and VAT (if relevant). 

Once you have registered your company, and assuming that you intend to start trading straight away, you must register with HMRC for corporation tax within three months. For more information about this, see our Guide to Corporation Tax.  

What does it mean to be registered with Companies House? 

Being registered with Companies House means your business has been structured as a distinct legal entity – i.e. a company. After registration, Companies House issues you with a certificate of incorporation, proving the legal status of your business. Information relating to the company is also added to the register of companies.

Do all companies have to be in the Companies House?

All categories of private and public companies need to be registered with Companies House. This includes private limited companies (Ltd), public limited companies (PLCs), and limited liability partnerships (LLPs). 

Can anyone view Companies House? 

Yes. Details of companies – including name, company number, registered office address, directors, and persons of significant control – are publicly accessible via the Companies House search page. 

Can you be a director without being on Companies House? 

Details of each director must be included in your application to register a company, and these details are visible on the register after incorporation. This includes the director’s full name, date of birth and service address where official correspondence can be sent. Worried about privacy? By using a directors service address provider, you can keep your residential address off the public register.

Are self-employed on Companies House?

No. If you operate your business as a sole trader – either on your own or as part of a partnership – there is no legal distinction between you and your business. Your business does not exist as a separate legal entity and is not eligible to be listed on the Companies House Register. 

Do you need to register information with Companies House? From starting a business to dissolving an old one, Mint Formations can help!

The post What is companies house & why is it important? appeared first on Mint Formations Blog.

Around 30,000 new products are launched yearly, and a staggering 95% fail. One of the main reasons behind their demise is there’s no demand and customers’ needs aren’t considered upon launch.

In this guide, we’ll take you through how to conduct thorough market research on a product to help you launch in confidence and reduce the risk of your business succumbing to the same fate.

What is product research?

Product research is the process of gathering and analysing information about your product. You’ll look at the current market, key competitors and your potential audience. This research will help you to identify any opportunities if there’s a demand for your product and assist with any decisions regarding product development, costs involved and distribution.

When done correctly, product research can help minimise potential risks and determine whether your product will succeed before spending money.

This method can also be used to optimise existing products as you can monitor how competitors are evolving and adapt your product in response.

How to do product research

Now you know why effective product research is so important, here are some practical tips on how you can carry it out:

Evaluate market size

You won’t be able to get the exact market size for your product, but these handy methods give you a rough estimate:

• Use Google Trends: Search for your product and look at the interest over time to determine popularity. This is also useful for identifying regions where your product is most popular.
• Search for your product: Google your product and see how many competitors are out there. Also, look at who’s ranking — is it bespoke sites or marketplaces like Amazon or eBay? This can help you decide where to market your product.
• Find reviews: Following your Google search, look at competitors’ reviews. Are there tons or just a couple? If there’s a lot, this indicates a larger market, whereas a few would suggest it’s more niche.

Look at competitors

This point loosely ties in with the first. When you conduct market research for your product, note how many competitors you have. If there is competition, then there is a market present, but it also means you’ll need to figure out how your product is different or better.

On the other hand, if you’re the first, be prepared to undertake lots of research to decipher whether you have a market. A smaller market size does mean you’ll have a limit on your revenue potential, but it may make it easier and more cost-effective to market your product.

It may also be helpful to use a keyword research tool such as Ahrefs to identify potential search volumes for product names. This can inform you how competitive your target keyword terms are and what possibility you have to rank for them.

Determine product longevity

Product markets fall into four categories: stable, growth, fad and trend. Depending on where your product lies, it can significantly influence your business’s success or failure.

• Stable: A product needed by all, such as a fridge, would be in a stable product market. You’re unlikely to see many sharp increases or decreases for such products.
• Growth: This refers to a product growing in popularity that shows signs it’s here to stay.
• Fad: Demand for fads rises
• rapidly but dies out just as quickly. Fads can be lucrative if you get in at the right time, but it’s hard to predict, and demand will disappear quickly.
• Trend: The trend product market is longer-term and grows slower than fads. It also doesn’t burn out as quickly. There’s potential to grow into longer-term markets, but it’s hard to predict.

Google Trends is an excellent way to see the trajectory of a product over time. This will help you to determine whether your idea is here to stay (stable or growing) or one that’s had its moment in the spotlight and is to be avoided (fad or declining trend).

Figure out markup and selling price

Before you get too far ahead with your product research and development, calculating markup is critical to determine whether you’ll make enough profit. Particularly with selling online, you’ll find many fees that quickly add up and eat into your profit margin.

Think about the following things when calculating markup:

• Cost per unit or cost of materials
• Packaging: product and shipping
• Import shipping
• Customs and duty fees
• Shopping cart fees
• Credit card processing fees
• Shipping fulfilment fees
• Shipping cost
• Advertising costs

From here, you’ll be able to work out a selling price. Bear in mind that if your product is inexpensive, you’ll need to sell a lot to make a profit, and with increased sales comes more work in terms of customer service and operations. Expensive products, on the other hand, may take longer to sell.

Think about shipping

You may be surprised by how much high shipping charges can impact your sales. In fact, 66% of customers expect free shipping, whereas 80% think it should be free over a specific cost. Aside from shipping costs to customers, you’ll also need to consider how much it costs to ship to you and any storage fees if you’re not using the dropshipping method.

Think about the fragility of your product. This may seem odd to consider, but you’ll need to spend more on packaging materials for fragile items. Otherwise, you’ll face a lot of refunds or returns due to breakages.

Extra tips for product research

• Research early on: Don’t wait until you’ve got the product before starting your research. Start looking as soon as you have the idea.
• Keep costs down: As a small business, it’s vital to keep costs down initially. When carrying out product research, try to use free information. For example, Google Trends is an excellent source of free information.
• Find out what customers are saying: If you already have a competitor, use this to your advantage. Look at subreddits about their products and read reviews. This can help you determine how to improve your product before you start developing.

Want to get started with your new product? Register your business with Mint Formations today and begin trading in confidence. If you have any questions, get in touch with our team today, and we’ll be happy to help.

The post Product research for small business success: A guide for your UK business appeared first on Mint Formations Blog.

It’s easy to see why the video game market is booming, too. Aside from being great fun, a study carried out by the National Literacy Trust (NLT) found that video games can even improve creativity, build better social connections and boost mental health in teenagers.

If you’re looking to start your own video game company but aren’t sure where to start, you’ve come to the right place. We’ve put together our top tips to help you build your business so you can entertain people with your creativity.

What experience do I need to start a gaming company?

As with most other businesses, you don’t need to have any official training or qualifications to start a video games company.

It is crucial to have a passion for video games, of course, but you also need the technical knowledge to design, build and programme your projects. You can obtain much of this knowledge through formal education, but many video game entrepreneurs start by honing their skills, such as programming, storyboarding and development, in their spare time before deciding to launch a video game company.

Depending on the scale of the game projects that you’re working on, it’s possible to keep the majority of the work to a single person. However, it’s more than likely that you will need to recruit expertise in concept design, animation, scripting and programming, either on a freelance or permanent basis. Having previous experience in the video game industry will help.

How to start a video games company in the UK

Creating a video game company is a popular career choice, but you need passion, skills and drive to make a good living and set yourself apart from your competition. To start your business, you will need to carry out the following:

Research your target market

Before you go any further on your startup journey, you need to assess the market and determine if there is enough room to grow your business. You may have a great concept and design team, but if there is insufficient demand for your game concept, it can be hard to break through the noise.

Take the time to research your competitors and learn who your target audience is. This is an incredibly important task to complete before you get started with the development phase. In order for your game to be a success, you’ll need to make sure that you’re appealing to the right audience and meeting their expectations.

Estimate the costs

You’ll need numerous powerful computers, high-end monitors, specialised software, digital drawing equipment, video game consoles and a proper workplace. Whilst you get started, you can work from home, which means you won’t need to spend too much on infrastructure and human resources, provided you are highly proficient in handling multiple requirements. However, bear in mind that, as your business grows, you may need to hire additional staff and decide whether you’ll work remotely or from a shared location.

Brand your company

As of 2023, there are 2,555 active video game companies in the UK. It’s a tight market to crack, especially when new startups are forming all the time. Therefore, it’s essential to create a branding strategy, which includes creating a business name, website and social media presence — this can take your company to the next level and appeal to gamers who want to be on the ground floor of your video game revolution.

Establish your video game business legally

For any private business started in the UK, the business owners should have registered their business name and address with the Companies House. Relevant tax registrations and appropriate permits and licenses are necessary too, so research what you need to do before you get started.

Set up a business bank account

To keep your cash flow organised, you should open a company bank account to keep your business and personal finances separate. This can also help to make your business look more professional among your players.

Get business insurance

Business insurance for your video game company has become highly necessary as it covers unforeseen damages/loss as well as any workers’ compensation if you have any employees.

Develop your video game

Game development in small teams, or even alone, allows for the same authorial control as writing a book or script. You can let your creativity run wild, though a basic familiarity with the gaming landscape and thorough market research is encouraged, as this will help you avoid repeating a popular idea.

Build your online presence

A strong marketing plan can make or break a new company. To get the news of your exciting new game out in the world, you’ll need to create a strategy that plans how you’ll tell your target audience about it.

Create a business website with teasers and information about what your game will be about. Include expected release dates if possible, as this will drum up excitement.

Take time to build your social media presence too. Many game companies take advantage of social platforms to showcase their products. Include a mix of videos, images and updates about how development is progressing.

Sell your video game

Once you have created and developed your game, you can then sell it. You have three different ways you can sell your game.

Firstly, you can sell it to a larger gaming business to distribute, or you might choose to sell your game via a popular gaming platform such as Steam, Desura, and GOG, though these platforms will take a share of your revenues.

Alternatively, you could sell your game through your company website. Having an online presence is essential if you want to reach a wider audience of players.

Player retention and growth tactics

Once you’ve launched your new video game, here are some tips to help make your venture more lucrative:

• Give options for in-game purchases by providing periodic upgrades that entice players to keep coming back for more
• Send reminders about new updates, features and gameplay options
• Keep your players motivated by sending teasers of your upcoming releases through community forums
• Track customer behaviour and send customised advertisements and updates.

Ready to form your video game company?

If you have your business plan created and are ready to start a video game business, it’s time to form your own company. You can form a limited company or go the sole trader route. Deciding and completing your company formation is crucial to your business success, so why not let us help?

At Mint Formations, we can help you form your limited company or self-employed business and take away all the stress that comes with getting started. Get in touch with our friendly team today and kickstart your gaming success.

The post How to start a video game company in the UK appeared first on Mint Formations Blog.

That’s where market research really shines.

Market research is a systematic approach to gathering and interpreting data and information about the following:

• Potential customers
• Competitors
• The overall market landscape.

In the UK, where business sectors are widely varied and competition is fierce, market research isn’t just a good idea — it’s essential. According to Investopedia, the biggest reason new businesses fail is not investigating the market. 

You’re in the right place if you’re wondering what exactly it is and how to conduct market research. Whether you’re just about to register a new company in the UK or you’ve been operating for a while, this guide will help. It’s got everything from the basics, like what market research is and why it’s essential, to a step-by-step outline to follow and information about outsourcing research. 

Let’s get started. 

What is market research?

Have you ever wondered why some products fly off the shelves while others sit and gather dust? Or why do some brands resonate with people so well? The answer is usually market research. 

Before we dive into the specifics of market research, it’s important to know the basics. 

At its core, market research is about gathering information. It’s about asking questions, listening to responses, and piecing together a clearer picture of your target audience and how to reach them. 

But why is this so crucial? Understanding the “why” behind customer choices can be the key to unlocking business success. It’s not just about numbers – it’s about the stories and reasons behind those numbers.

The importance of market research

As mentioned, market research is often key to a business’s success. Forbes lists “complacency” first on its list of reasons businesses fail. Many new business owners often go with their gut when it comes to decisions for their new venture. While gut decisions can pay off, it’s a risky strategy. 

Market research acts as your safety net. It’s the process that lets you make decisions based on facts and figures, not just a feeling. Let’s break down why market research is such a game-changer for businesses of all sizes:

Reduces risks

Starting a business always involves some level of risk — that’s a given. But with solid market research, you can significantly lower those risks. It shows the potential bumps and turns ahead, allowing you to steer clear or prepare for them.

Uncovers opportunities

Market research helps you spot golden opportunities in your industry — whether that’s an underserved market segment, a rising trend that fits your business, or a gap in the market that your product or service can fill perfectly.

Understands customer needs

Your customers are the heart of your business. Market research lets you get to know them on a deeper level. What do they want? What do they need? What problems are they trying to solve? With this knowledge, you can precisely tailor your products or services to meet these needs.

Informs strategy

Your business plan and strategy isn’t something you set and forget. It’s a living, evolving plan. Market research feeds this plan with fresh, relevant data, helping you adapt and refine your strategy as the market changes.

Market research isn’t just about collecting data — it’s about turning that data into actionable insights that can guide your business to success in the vibrant UK market.

Why market research is more important than ever

Market research has always been important. Henry Ford didn’t launch the Model T without knowledge of consumer demands and Ford’s competitors. 

But today’s consumers are more informed and empowered than ever. 

Almost everyone has access to a tonne of information in their pockets. Customers are no longer passive buyers — they’re actively involved in the buying process at every level. 

Here are a few reasons why market research is more important than ever: 

• Research-driven decisions — Consumers now rely on online reviews, social feedback, and peer recommendations to make purchasing decisions. 
• Brand loyalty and advocacy — Loyal customers become brand advocates, sharing and defending their choices.
• A desire for personalisation — Brands that tailor experiences to individual needs see increased loyalty and satisfaction.

Businesses can build stronger relationships and drive growth by understanding their influence and tailoring your services or products to their preferences.

Now that you know why market research is important, let’s dive into the specifics. 

Types of market research

Market research is not a one-size-fits-all kind of deal. There are different approaches and methods, each with its own strengths and weaknesses. While there are hundreds of different ways you can gather data and information, there are two main methods of market research: 

Primary market research

Unsurprisingly, primary research is all about gathering data directly from the source. Before the internet, this involved hitting the streets and asking questions or calling people to get them involved in a survey. While those methods are still used, conducting primary research online is much easier. You can break down this kind of research into two main areas: 

• Qualitative research — This digs deep into people’s thoughts and feelings. It’s more about the “why” and “how” than the “how many”. Methods include in-depth interviews, focus groups, and observation.
• Quantitative research — This is the numbers game. It’s about collecting measurable, numerical data through methods like surveys, questionnaires, and experiments.

Primary research is a great way to know your potential customers and understand consumer trends. By sourcing the information directly, you can gauge its reliability and get a direct read on what your customers want. 

Secondary market research

Sometimes there’s no need to reinvent the wheel regarding market research. Secondary market research uses data that someone else has already collected. Today, there’s a huge amount of information and data available online that can offer valuable insights. Plus, it can save you a lot of time and money. 

Here are just a few of the places you can find secondary data: 

• Government publications — These are goldmines of data, from population demographics to industry trends. In the UK, the Office for National Statistics is a fantastic resource for market research.
• Industry reports — Think of these as the pulse-check on your sector. They can tell you about market size, growth trends, and key players. Often, businesses will publish industry reports as part of a marketing campaign to gain media attention. You can find information there. If you can, look for the original data. Statista can be a great starting point. 
• Academic studies — Universities and research institutions often publish detailed studies that can offer unique insights. There are various places to find academic studies and resources online, including Google Scholar and JSTOR. 

While you can rely on one type of research if, for example, you’re pressed for time or have budget restrictions, it’s usually best to mix primary and secondary research. While primary research gives fresh, specific insights, secondary research can help you understand the broader context. 

In a nutshell, market research is a blend of art and science. It’s about asking the right questions, in the right way, to the right people — and then making sense of all the answers you get back.

Customer research

Whether you’re a new business or you’ve been established for a while, understanding your customers is absolutely crucial. Your customers are the lifeblood of your business. They’re the ones who will buy your products or services, recommend your brand to friends and family and, ultimately, determine your success. 

So getting to know them is vital. Market research is a fantastic way to get to know your customers, understand their needs and learn how to reach them. 

Here are some of the best ways to get to know your customers: 

Surveys and interviews

In the last section, we mentioned how important primary research is, especially for learning your target market. Surveys and interviews give you a direct line to your customers’ thoughts and needs. They allow you to ask specific questions and get answers straight from the source. 

• Surveys are fantastic for quantitative data and are easy to conduct nowadays. Use online tools like SurveyMonkey to create and distribute them.
• Interviews are ideal for qualitative insights. They’re more time-consuming but can be a great way to get deeper insights into your customer base. 

Customer feedback

While direct interaction with your customers is crucial, existing companies already have great customer feedback resources. Reviews, comments and direct feedback can be excellent sources of market information. They give raw, unfiltered insights into what your customers think and feel. Here are some good places to start: 

• Online reviews — Check platforms like Google Reviews and Trustpilot.
• Social media comments — Monitor your brand mentions and direct messages.
• Customer support interactions — Log and analyse customers’ questions and issues to your support team.
  

If you’re a new business, this type of research can be trickier, but it’s still possible. Rather than looking at your own reviews and feedback, you can look at competitors to see what they do well and not so well (but more on that in the next section.) 

Customer personas

One of the most difficult parts of launching a new business is targeting the right people. You can create a good picture of your target audience through surveys, interviews and customer feedback. But you can go one step further by creating customer personas. 

A customer persona is a picture of your ideal customer — their age, interests, pain points, and why your product or service is a perfect fit for them. It’s a detailed, semi-fictional representation of your ideal customer based on market research and real data, including: 

• Demographics — Age, gender, income level, education, occupation.
• Psychographics —  Interests, lifestyle, values, and buying motivations.
• Behavioural traits — Shopping habits, brand loyalty, and product usage.

Why customer research is essential

Customer research can be time-consuming, but it’s well worth the effort. It helps you to:

• Tailor your products/services — Shape your offerings to meet your customer’s needs and solve their problems.
• Refine your marketing — Speak your customers’ language and reach them through the right channels.
• Build strong relationships — Show your customers you understand and value them, building loyalty and trust.

Understanding your customers through market research is like having a conversation with them. It’s about listening, learning, and using that knowledge to serve them better and build a business they love (and keep coming back to). 

Competitor research

Market research goes beyond knowing who your customers are and what they want — your competition is just as important. Knowing and understanding what your competitors are up to can give you invaluable insights and help you gain the upper hand. 

Let’s take a look at competitor research and analysis and why it’s crucial. 

Identifying key competitors

Before you can dig into any research, you need to know who your competitors are. Unsurprisingly, your competitors are businesses that offer similar services and products in your target market. Your competition is split into two categories: 

• Direct competitors — These businesses offer the same products or services as you.
• Indirect competitors — These businesses offer different products or services but target the same audience.

It’s crucial that when you’re identifying your competitors, you’re realistic about it. Say you’re starting a fast-food restaurant; your competition isn’t going to be McDonald’s or Burger King. It will be other local fast-food restaurants (direct competitors) and pubs and restaurants (indirect competitors). 

Analysing Your Competition

Knowing your competitors can be a fantastic way to find gaps in the market and opportunities. One of the best ways to evaluate and analyse your competitors is to do a SWOT analysis: 

• Strengths — What are they doing well? Think about their brand reputation, product quality, or customer service.
• Weaknesses — Where are they falling short? Maybe their pricing is too high, or their marketing is outdated.
• Opportunities — Where can you outperform them? Perhaps they’re neglecting a segment of the market that you can serve.
• Threats — What are they doing that could challenge your business? Are they expanding or launching a new product line?

Not everything you identify in your analysis will be actionable, but you’ll find a lot of helpful information. Make sure you keep detailed notes to refer back to later. 

Monitoring competitor activity

Competitor research isn’t a one-and-done activity — you’ll be doing it constantly throughout your business journey. Staying updated with your competitors’ moves is key. It’s important to note that this isn’t so you can copy them — it’s so you can understand their strategy and find your own edge. 

Here are a few of the best ways to monitor what they’re up to: 

• Website and SEO analysis — Use tools to see how their website performs and which keywords they target.
• Social media tracking — Follow their social media accounts to see how they engage with their audience.
• Sign up for newsletters — Get on their email list to see how they communicate with customers.
• Read customer reviews — What do their customers think about their services and products? Are they doing anything that can be improved? 

Competitor analysis isn’t about copying your competition and offering the same products or services, it’s about the following: 

• Learning from others — Understand what works (and doesn’t) in your industry.
• Finding your unique selling proposition (USP) — Identify what sets you apart and how to emphasise this in your marketing.
• Staying agile — Be ready to adapt your strategy based on the competitive landscape.

Analysing your competitors through market research helps you understand the moves others are making so you can craft a winning strategy of your own.

How to conduct market research: A step-by-step guide

Conducting market research might seem daunting, but with a systematic approach, it’s quite straightforward and can even be fun. Here’s a step-by-step guide to help you navigate the process:

Step 1: Define your research objectives — What’s the goal?

Clearly articulate what you want to learn from your research. Are you trying to understand your target audience, evaluate a new product idea, or assess your competition? Write down specific questions that you want the research to answer.

Think of this step as setting the destination for your research journey. Without a clear endpoint, you might find yourself lost in a sea of data without meaningful insights.

Step 2: Identify your target audience — Who are they?

Outline the demographics (age, gender, income), behaviours (shopping habits, brand loyalty), and needs of the people you want to serve. Create customer personas to visualise your ideal customers.

Remember, this is just your starting point, and you’ll use your market research to update your customer personas later on. 

Step 3: Choose your research methods — Qualitative or quantitative? primary or secondary research?

Decide whether you need in-depth insights (qualitative) or broad trends (quantitative). Choose methods like surveys for quantitative data and interviews or focus groups for qualitative insights.

You’ll also need to decide whether to use primary or secondary research. While both can be insightful individually, a mixture can be game-changing. 

Step 4: Collect the data — Gather information

Use your chosen methods to collect data from your target audience. Look at government publications, industry reports, and academic studies for secondary data. Be meticulous and organised in your data collection.

If you create a survey or another data collection method, do everything you can to make it unbiased. The wording of a questionnaire can make a huge difference to how people respond, and you want honest answers. 

Step 5: Analyse the data — Make sense of what you’ve found

Organise the data, look for patterns, and draw conclusions. Use tools like spreadsheets or specialised software to help. Consider hiring a professional analyst if the data is complex.

You don’t need to be a data analyst to glean insight from your data — especially if it’s qualitative. If you’re struggling and not eager/don’t have the budget to hire a professional, there may be AI tools you can use for analysis. 

Step 6: Apply your findings — Put it into action

Use the insights you’ve gained to inform your business decisions. This could mean developing new products, tweaking your marketing strategy, or rethinking pricing.

These changes don’t always need to be huge. Little tweaks here and there can often make a big difference, too. 

Step 7: Review and adjust — Keep it fresh

Market research isn’t a one-off task. The market research process doesn’t end once you’ve implemented your insights. It’s an ongoing cycle of gathering data, drawing insights, taking action, and revisiting the process. 

Review and refine your research methods regularly to ensure they remain effective and relevant. As the market evolves, so should your research approach.

Common market research challenges

While there’s no denying the importance of market research, it’s not always a walk in the park — especially if you’ve never done it before. Like every process, market research has its hurdles, and you’ll face challenges along the way. 

We’ve put together some of the common challenges businesses face and what you can do to work around them: 

Data overload

The amount of data available today is incomprehensible, and it can get a bit overwhelming when you’re carrying out market research. With so much data available, it can be challenging to see the wood from the trees and gain insight into your market. 

One of the best things to do in this situation is to focus on quality over quantity. Before diving into the data, clearly understand what information you need and use specific research to gather the data you need. 

Biased results

Whether you’re conscious of it or not, your own opinions and theories can influence the outcome of market research. Whether it’s how a question is phrased (leading questions) or the group chosen to be surveyed, biases can easily creep into our research. 

Do everything you can to create unbiased research tools. Ensure that survey questions are neutral and don’t push respondents to a specific answer, i.e. “How brilliant was your experience with our customer service team?” You should also ensure that your chosen sample group represents the larger population you’re studying. 

Time and cost constraints

Launching or running a business is a lot of work, and finding time to do research can be tricky. Good market research takes time and can be expensive — especially if you’re a small business with limited resources. 

If your resources are limited, maximise what you’ve got. Consider a mixed approach to research, with primary research offering fresh insights and secondary research backing it up. Remember, market research is an ongoing process, so you can dig deeper later. 

Keeping up with a changing market

Nowadays, market dynamics can shift overnight, and the last thing you want is your recent market research to be redundant after putting time and effort into it. 

Adopting a continuous research approach is one of the best ways to combat this. This doesn’t mean you constantly need to send out surveys and trawl through ONS data. Setting up email feedback loops with your customers can be a great way to monitor consumer behaviour. You can also subscribe to industry publications.

In-House vs uutsourced market research

As you can see, quite a lot goes into market research, and it can be a lengthy process. Due to this, many businesses face a pivotal decision — handling their own market research or outsourcing it to specialists. 

Both are good options, but each has its own advantages: 

In-House market research (DIY Market Research)

In-house market research is the process of carrying out research yourself. Here are the benefits of this DIY approach: 

• Control and flexibility — Carrying out your own market research gives you direct control over the process. You can quickly adapt or modify your methods based on needs, budget and time constraints.
• Cost-effective — Handling your own research means that it can be a lot more cost-effective. While there’s an initial investment in tools, most of your investment will be time.
• Direct integration with business strategies — You and your team will have a deeper understanding of your business goals, and you can make sure your research aligns with those objectives. 

Outsourced market research

Outsourcing your market research is where you hire an external consultant to carry out your research for you. Here are the benefits of outsourcing: 

• Expertise and experience — Market research firms and consultants bring specialised knowledge and a wealth of experience. They’re well-versed in the latest research methods and tools and can see challenges before they arise.
• Time-efficient — As market research professionals, an outsourced consultancy will be faster than an in-house team — especially for in-depth research. They have the resources and experience to get the data and information you need much quicker.
• Objective perspective — An external firm can provide an unbiased, objective view, which is valuable for eliminating internal biases. This fresh perspective could be what you need to beat your competitors. 

The decision between in-house and outsourced research often boils down to the business’s specific needs, budget, and long-term goals. It’s essential to weigh the pros and cons of each approach and choose the one that aligns best with the company’s objectives.

Boost your business with market research

Market research isn’t just a box to tick off your business to-do list; it’s a strategic tool that can guide you on the path to success. From understanding your customers on a deeper level to staying ahead of your competitors and seizing new opportunities, market research is the compass that can guide your business through the complex landscape of today’s market.

In this guide, we’ve broken down the what, why, and how of market research, aiming to demystify the process and show that it’s accessible and essential for businesses of all sizes. Market research is your ally whether you’re launching a startup or looking to grow an established business.

But market research is your starting point, and Mint Formations is here to guide you through the rest of your journey. From company formation to ongoing business support, we provide the tools and expertise you need to confidently launch and grow your business.

Explore our company formation packages today and take the first step to start your successful business in the UK. If you have any questions along the way, feel free to get in touch with us. We’re always happy to help.

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