You have developed a fantastic business idea and found your target consumer, so now you want to turn it into a start-up. But when should you do it? Is there a right time to form a limited company? Turner Little asks: when it the best time to create your company?
Incorporation statistics
British business incorporation statistics for 2015 suggest that August and December are the two least popular months for starting new firms. Last year, there were just 44,136 incorporations in August and only 40,492 in December, with 2014’s incorporation data telling a similar story.
Back to business
Business advice portal Start-Ups explains why August and December are so unpopular for establishing companies in the UK. These months fall in the summer and Christmas holidays, so at these points in the year, entrepreneurs are often resting, rather than thinking about creating new businesses.
In contrast, the number of UK business incorporations rose dramatically in both January and September 2015, at 47,360 and 51,305 respectively, when compared with the month prior. To put it in simple terms, these are the months where entrepreneurs, like many people across the UK, think to themselves that “the holidays are over, so it is time to get back to business.”
Forming limited companies
But March was the most popular month for creating a business in 2015. During March, there were 60,401 incorporations, signalling the only time where business creation rates broke the 60,000 barrier. This may be because March is the last month of the tax year, meaning that entrepreneurs wished to set up their business’ ready for the new obligations that the following tax year brings.
In conclusion, there is no standard ‘right time’ to start a business. Your start-date depends on your own circumstances, as well as the industry you operate within. Whenever you do decide to create a limited company, you may wish to enlist help for the formation process. Turner Little supplies the limited company formation services you require in order to get your start-up off the ground.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
