The number of private sector businesses has reached a new record of 5.4 million, the Department for Business, Innovation and Skills has announced. There are now 900,000 more businesses compared to 2010, while the number of businesses that employ people has also risen by 35,000 from 2014.
Small businesses make up 99.3% of all businesses in operation and have a combined turnover of over £1 trillion. As well as medium-sized enterprises and 3.3 million sole traders, there are 7,000 large businesses that collectively employ 10 million individuals and contribute £2 trillion to the UK.
John Allan, national chairman of the Federation of Small Businesses, said: “The entrepreneurial spark is alive and well in the UK. The key is to continue to encourage people to take the plunge and set up their own business by providing business support that will help them grow and meet their aspirations.”
Forming a limited company
The following steps must be taken to become a limited company:
- register (or incorporate) your business online at Companies House
- if you are forming a totally new company, a memorandum of association, articles of association and form IN01 must also be submitted
- at least 1 company director must be appointed – someone who is over 16 years old and not currently bankrupt
- a company secretary can also be appointed although this is no longer mandatory
- accounts and annual returns must be filed with Companies House and tax returns with HMRC.
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