Number of new UK businesses continues to soar

More than 102,000 new businesses were set up in theUKlast year, according to the latest government figures.

The total number of businesses now stands at a record level of 4.9million.

Business Secretary Vince Cable said the figures “are a timely reminder of the number of people willing to try their hand at business”.

The government says it is keen to encourage both new businesses and existing companies in order to help create more jobs.

Enterprise Minister Matt Hancock said: “”Britainis turning a corner. There are now around 400,000 more businesses than in 2010, an increase of 9%.

“There is much more to do, not least to make it easier to employ people and create jobs.”

The government says it will soon launch a new strategy to help both budding entrepreneurs and existing businesses to succeed.

In the meantime, it has announced that from next April, businesses will receive a £2,000 Employment Allowance discount on their National Insurance bill. This will effectively remove the tax on jobs for around 450,000 small businesses.

It is good to see that the number of companies is growing and that the government is taking steps to encourage them.

However, while setting up a new business can be very exciting and satisfying, it is not without risk. There are several potential pitfalls that could damage a new enterprise and prevent it succeeding. It’s important that before starting out, budding entrepreneurs should seek legal advice on a whole range of matters from leasehold agreements to business contracts and employment issues.

There are also important questions about the structure of a new company. For example, should you set up as a sole trader, as part of a partnership or as a limited company? You may wish to consider a franchise arrangement.

We have helped numerous new businesses get off the ground and are happy to offer advice on such things as setting up as a sole trader, partnership or new company.

We also have several associates who can bring added value to the service we provide, including accountants, surveyors, valuers and financial advisers.

Please contact Sarah Liddiard if you would like more information about starting a new business or developing an existing company.