Wednesday, September 9, 2009

Do i need to Register a Company and V.A.T before start Online Store in UK ?

Resolved Question

Do i need to Register a Company and V.A.T before start Online Store in UK ?

i am planning on starting an online store in uk, but i don't really know the requirements legal wise, can anyone advise please.

Best Answer - Chosen by Asker

The advice from Reece about contacting Business Link is good. They have free information and seminars that take you through everything you need to know about starting your business.

You don't need to register your company unless you're setting up a limited company, in which case, you register it at Companies House. Their site is very helpful.

You will need to let Inland Revenue know about your business within 3 months of starting it for tax and national insurance purposes. They also provide free seminars on starting in business, which are very helpful.

VAT registration normally is only necessary when your turnover reaches £68K (approx) or is expected to reach that level in any year. However, it can sometimes be advantageous to register voluntarily before you reach that level. It's only beneficial if you're buying stock or raw materials that you have to pay VAT on. You then have to charge VAT to all your customers, supply them with sequentially numbered invoices and make a VAT return every quarter. There are now a number of ways of accounting for VAT but it would be better to take advice on which is appropriate for you.

The other thing that you need to comply with is Distance Selling Regulations. This means that your site needs to have Terms and Conditions that clearly show your business name, address and telephone number, what your returns policy is and includes terms about a cooling off period.

Good luck!

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Other Answers (6)

  • Hi there,

    There's a very good article on the legal requirements for setting up a company at: http://www.homebusinessuk.co.uk/legal.htm but I'd also strongly I'd strongly recommend visiting http://www.businesslink.gov.uk/ – it is the Government's free business advice and support service has a wealth of resources and links which you might find useful.

    Best of luck!
    Steve

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  • When anyone asks a question like this the answer should always be the same - get an Accountant! You need to register the company name but you don't register for vat until you hit the vat threshold. Until then you don't charge vat to your customers and you can't claim back any vat you have paid. An accountant will explain all of this and help with your tax etc.
  • Look at HMRC's website: hmrc.gov.uk

    Yes you'll need to register the company.

    Usually you don't register for VAT unless your turnover is more than £68k per year (I think). It also means you cannot charge VAT to customers unless you're VAT registered.
  • Go to the below website, it has lots of useful info

    www.businesslink.co.uk

    You can also book onto one of their 3 day business courses for free, if you are in the UK.

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  • for that you should see
    http://bizsol.0fees.net/
    i hope that resolve your problem. i have also experienced this web on answers.yahoo.com

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  • speak to a bank manager or accountant for advise

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