Do’s and Don’ts for Creating Your UK Tech Startup

Are you a UK-based tech entrepreneur who wants to get a startup company off the ground? If so, be ready to tackle some of the legal and commercial requirements to put your new business on the map, make it legit, and attract customers. Tech entities with a few employees have to go through most of the same steps required of large corporations, including bank account setup, legal registration, and more. Of course, you stand a much better chance of success if you have an IT-related college degree, but it’s not necessary.

Be sure to proceed slowly and carefully through the registration process. Too many startup owners ignore one or more pieces of the application and end up regretting it later on. Be SEIS-aware as you set up your tech enterprise and resist the temptation to save money by performing accounting chores without professional help. Here are a few pertinent warnings and suggestions for anyone attempting to launch a UK-based tech startup and wanting to thrive as a successful entrepreneur throughout the process. 

Simplify Bank Account Setup

Consider applying for a business account with at least one high street financial institution, but don’t expect immediate approval. Many of the top banks don’t allow startups to open business accounts. Your alternative is to use a digital bank, which at least offers a safe, legitimate way to safeguard your funds and give your company a footprint in the central databases.

Don’t Ignore the Power of an IT-Related Degree

There’s no better preparation for prospective tech entrepreneurs than a formal degree. However, the expense is considerable. Fortunately, college and university attendees can take out student loans to cover the high tuition costs. If you’re aiming for an IT degree, apply for an education loan when you decide to attend school. Applying is easy, and you can do everything online. When school begins, consider majoring in information science, computer engineering, IT & information systems, software engineering, computer science, cyber-security, or system & network administration. As long as you remain in the general IT category with your major, you’ll be in good shape when the time comes to operate your own tech business.

Be SEIS-Wise

Apply for SEIS (Seed Enterprise Investment Scheme) approval. Suppose you’re new and need to get funding for your business from investors who get a tax benefit from buying your shares. In that case, you have a good chance of meeting the guidelines, which require that you be UK-based, not listed on a major securities exchange, a new entity, and not a subsidiary of another company. SEIS status can help you acquire money from small investors and sustain your business through those challenging first few months of operation. If you are SEIS-approved, attracting fresh investment capital is much easier because individuals realize that you had to qualify for the status.

Don’t Do Accounting Yourself

In the cyber age, business accounting services are a must. As a tech expert, you need to work with professional accountants who know how to keep the book, deal with taxation issues, and help get budgets in order. Don’t rely on software products that promise to save you money. You need to find a small business accountant, luckily, some of the best accountancy firms in the UK offer competitive monthly fees for all-in-one startup services.