Starting a Business: What Every Entrepreneur Should Know

So, you’ve finally decided to start a business. Congratulations! Whether you're setting up shop in the UK or launching your dream in Nigeria, one thing is certain: the legal side of entrepreneurship is not where you want to cut corners.

But don’t panic, we’re here to make it easier. Let’s walk through what you really need to know if you're starting a business in either country.

🌿 Starting a Business in the UK

The UK remains one of the most attractive places to start a business, and not just because of its strong economy. You can register a company in less than 24 hours, and the tax and legal systems are streamlined to support entrepreneurship. First, decide how you want to structure your business. You could run it as a sole trader, where things are simple but you're personally responsible for any debts. If you want a little more protection, forming a limited company might be a better choice it offers separation between your personal and business finances.

Choose a Legal Structure

This isn’t just “admin”; this decision affects everything, from how you pay taxes to whether you’re personally liable if things go wrong.

• Sole Trader: Simple and low-cost. You're personally responsible for debts and taxes.

• Limited Company (Ltd): A separate legal entity. Your personal assets are protected if the business fails.

• Partnership: Two or more people share ownership and responsibility.

  
  

Example: If you're running a small cupcake business from home, being a sole trader might make sense. But if you're building software with investors on board, a limited company is the safer route.

Once you've picked your structure, you’ll need to make it official. Sole traders must register with HM Revenue & Customs (HMRC) for self-assessment tax. Limited companies register with Companies House, which is the UK’s formal register of companies. The registration is done online and often completed within 24 hours, very different from many countries where paperwork can take weeks.

You’ll also need to open a bank account in the company’s name, especially for limited companies, since mixing personal and business finances will land you in trouble.

You’ll also need to consider tax. Every limited company must register for Corporation Tax within three months of starting business activities, and if your business grows quickly and earns over £90,000 a year, you’ll need to register for VAT, though many small businesses choose to register early so they can claim VAT back on expenses.

If you plan to hire people, don’t skip your employment responsibilities. The UK has strong employee protections, which include fair contracts, pension enrollment, and maintaining payroll (known as PAYE).

Stay on the Right Side of Regulation

If your business collects customer data, whether for a newsletter or an app, you must comply with the UK’s version of GDPR. That means explaining how data is used and ensuring it's secure.

Also, check if you need a license: selling alcohol? Running a restaurant? Offering financial services? All require special permissions.

🇳🇬 Starting a Business in Nigeria: What You Need to Know

Nigeria’s market offers huge opportunities for a young population, a culture of innovation, and rising investor interest across tech, retail, fintech, and more. But legally setting up your business requires extra attention (and patience).

Nigeria’s start-up scene is fast-growing, full of smart ideas, and buzzing with energy. But before you open your doors, you’ve got some legal steps to take.

Choose a Legal Structure

• Business Name Registration (Sole Proprietorship): Good for small businesses, like a retail shop or online seller.

• Limited Liability Company (LLC): This gives your business legal protection and credibility.

• Incorporated Trustees: For NGOs and faith-based or charity organisations.

  
  

  
  

Next comes registration. In Nigeria, all formal businesses must be registered with the Corporate Affairs Commission (CAC). The process begins with checking name availability, filling out the right form (online or offline), and submitting valid identification, passport photographs, and a statement of the business’s objectives. After approval and payment, you’ll receive your Certificate of Incorporation, which is your legal proof of business identity.

But you're not finished yet: you need a Tax Identification Number (TIN), which is issued by the Federal Inland Revenue Service (FIRS). With it, you’ll be able to open a corporate bank account, pay taxes, and register for VAT (currently at 7.5%). Some states also require separate tax registrations for things like personal income tax.

For employees, you’ll also register with the State Inland Revenue Services for personal income tax.

Sector-Specific Licensing

Say you're importing medical or beauty products? You’ll need approval from NAFDAC. Opening a bakery? State environmental and food hygiene certifications are required. Running a TV streaming platform? You might need permits from NBC.

Nigeria has more regulatory layers than the UK, so hiring a lawyer or professional agency can save time and stress.

Remember ➡️Protect Your Brand

Want to protect your logo, slogan, or product? Register your trademark or patent with the Trademarks, Patents and Designs Registry. It’s a vital step if you're building a brand to scale.

Final Advice: Get Legal Support Early

Whether you’re building a startup in Birmingham or launching a brand in Abuja, success starts with building on a solid legal foundation. Registering your business, paying taxes, protecting your brand, and following employment rules aren't just "admin tasks"; they’re the tools you need to stay credible and compliant.

Don’t go it alone if you don’t need to. Whether it’s an accountant, lawyer, or experienced business consultant, getting expert help in the beginning stages can save you expensive mistakes down the line.

You're ready, so get that idea off the ground and make it official. The world’s waiting for what you’re about to build.

The views expressed on this website are provided solely for general informational reasons and are not intended to be relied upon as legal advice