You've got the idea and the business plan ready to roll. But what are the main legal and financial areas you need in place to keep your new business compliant?
Whether it's registering as a limited company, or setting up an accounting system that meets the latest digital requirements, it's important to get the basics right.
How to tick the right compliance boxes
As a director, it's your job to make sure your new business meets its regulatory requirements and stays compliant with the latest business and tax laws.
To help you get the basics sorted, here are 5 core areas to consider:
- Become a limited company – becoming incorporated shows you're serious and limits your liability, separating your personal wealth from your business profits.
- Set up a bank account – as a limited company, you're legally obliged to set up a bank account in your company name. Use this for all business transactions, and keep the company's money separate from your personal banking.
- Choose an accounting system – keeping records of your financial transactions is mandatory, and cloud accounting software, like Xero, makes this easy – track all income and spending and give your accountant the data needed to produce accounts.
- Register for business taxes – you'll qualify to pay corporation tax, and probably goods and services taxes too, so you need to register with your local tax authority.
- Check your other regulatory requirements – depending on your size, turnover and number of employees, there may be other legal requirements you need to factor in.
Talk to us about setting up the right foundations
As you can see, ticking those compliance boxes can get complicated. We'll help you lighten the compliance load by getting the legal and financial foundations sorted.
Get in touch to see how we can help