{"id":2456,"date":"2022-01-26T11:01:17","date_gmt":"2022-01-26T11:01:17","guid":{"rendered":"https:\/\/www.mintformations.co.uk\/blog\/?p=2456"},"modified":"2025-08-13T15:40:22","modified_gmt":"2025-08-13T15:40:22","slug":"the-complete-guide-to-setting-up-an-online-business-uk","status":"publish","type":"post","link":"https:\/\/www.mintformations.co.uk\/blog\/the-complete-guide-to-setting-up-an-online-business-uk\/","title":{"rendered":"The complete guide to setting up an online business UK"},"content":{"rendered":"

Thinking about setting up an online business in the UK? There’s never been a better time to do it. While Covid-19 caused mass business closures, it also gave people the opportunity to start an online business while stuck at home. In fact,<\/span> 85,000 online companies<\/span><\/a> started during lockdown.<\/span><\/p>\n

But if you’re looking to set up an online business in the UK, it can be daunting working out everything you need to do. How do you register your business? What do you include in a business plan? And what are the best ways to market your new company?<\/span><\/p>\n

This guide will walk you through every step involved in setting up an online business in the UK. So whether you’re just starting or you’ve been running a business for a while, this guide has something for you.<\/span><\/p>\n

What Is an online business?<\/h2>\n

An online business is pretty much what it says on the tin. It’s a company that conducts business entirely online rather than in a physical location. While many companies have a shopfront or premises alongside an online store, online companies are purely internet-based.<\/span><\/p>\n

Over the last decade or so, the number of online businesses has increased exponentially. This is due to increased consumer demand. In 2020, the number of digital shoppers reached<\/span> two billion<\/span><\/a>, roughly a quarter of the world’s population. Despite support for local businesses, Nasdaq predicts that by 2040 consumers will make over<\/span> 90% of their purchases online<\/span><\/a>.<\/span><\/p>\n

Benefits of an online business<\/h2>\n

Access to market<\/h3>\n

Creating an online business gives you unrivalled access to the market. Whether you use your own website or online marketplaces like eBay and Amazon, you can set up a business quickly<\/a> and access potential customers around the world.<\/span><\/p>\n

Lower overheads<\/h3>\n

By only selling online, you remove the need for retail premises and do away with the need for customer-facing staff altogether. Eliminating these costs allows you to invest in better products and marketing and improve your small business.<\/span><\/p>\n

Rapid growth<\/h3>\n

While a traditional business relies on foot traffic and word of mouth, an online business doesn’t have these constraints. With good products and a well-researched digital marketing strategy, you can grow your business quickly.<\/span><\/p>\n

Potential downsides of running a business online<\/h2>\n

Security and Fraud<\/h3>\n

As online businesses are rapidly growing,<\/span> cybercriminals are looking to target these businesses<\/span><\/a>. If you sell online, you’ll need to ensure that you have the latest security systems in place to deter criminals. Failing to protect your online business can be fatal for your finances and customer trust.<\/span><\/p>\n

Legal issues<\/h3>\n

As a business owner, you’ll be responsible for ensuring that your online business is legally up to date. Online sales have different laws that you’ll need to be aware of and compliant with. Failing to keep up with things like<\/span> General Data Protection Regulation<\/span><\/a> (GDPR) can result in<\/span> hefty fines<\/span><\/a> and loss of income.<\/span><\/p>\n

Trust<\/h3>\n

Consumers are naturally wary of anybody online who isn’t a trusted brand. With no physical location, your potential customers will<\/span> need convincing your business is genuine<\/span><\/a> and not a scam. This is less of a problem once you’ve established your business but can be challenging at the start.<\/span><\/p>\n

Types of online business<\/h2>\n

Millions of people worldwide are making money online. E-commerce is undoubtedly the most popular form of online business, and the UK has the<\/span> most advanced e-commerce market in Europe<\/span><\/a>. But while e-commerce makes up a large proportion of the market, there are many different companies you can start with just a computer and an internet connection. If you’re eager to start making money online and e-commerce isn’t quite right for you, here are just a few of the other routes you can take:<\/span><\/p>\n