Starting online business in UK

Basically me and my friend are thinking about starting up a online business selling video games and and possibly electronics and I'm a bit confused about actually starting it up and I'm hoping someone could help me out with a few questions.

1) What is the process of actually starting a online business? Do I need to register it or does that only apply when I earn over a certain amount per annum?

2) Do I need to be registered for VAT and/or any other tax?

4) Do I need any required licences to sell video games (both retail and digital)?

thanks.

 

1. If you are selling them yes you need to register as company or LTD. I can recommend someone in UK if you want.
2. VAT too. But for countries in EU you will not apply VAT.
3. If you are not manufacturer you need licences, yes. And you will pay for them.

 

I know that your funds are probably really limited right now, but it would be extremely worthwhile to talk to an experienced accountant who works with small businesses about setting up your company correctly. There are more questions/answers to be discussed than the three that you have listed above. For example, what structure of a company should you and your partner set up to protect both of you, to optimize your income/tax situation, etc. I know that, at this stage, it seems premature to worry about these types of things ("Taxes? We have not yet made any money!") but this is the exact time that you should work out these things. Once the business takes off and money starts to flow it might be too late to get agreement on important issues. Even if the business fails, you want to be sure that you do not have outstanding liabilities or other such issues that will continue to hurt you long after the business closed.

 

Build a game at Facebook and lets see what happen. If it's works you can go far.

 

Additionally, I would suggest a business lawyer, however, with right funds look into services like legal shield or other monthly party services that you can ask as many questions as you want without having to pay the hourly rate of a lawyer. Generally, they have a lot of resources already set up for things like starting a business, buying/selling homes, etc.

 

If you look around in the UK you can acquire grants and business funding for valid business proposals. You should really look into these to help you get started, the same companies/business ventures can also give you a mentor to ensure that you're following the correct procedures and legislations. If you're sure on your business venture, I'd definitely seek some start up help from the likes of these people, because they're everywhere and backed by the government to spur economic growth.

I hope this helps.