Starting Food and Beverage store at local market unit

[Timothy Li]

Hello all, currently my friend and I would like to start a business serving hot food and may be some drinks(eg. canned or bottled drinks). But been looking at some guides online and getting a bit confused. As we would like to run it as a limited company and most likely to be in a partner form so we both chip in same amount of capital to the company. Just wondering if I am correct with the sequence that I approach this.

1. Get the rental agreement and address for the shop
2. Register the company as a limited company.
3. Get the Level 2 Food Hygiene & Safety and Register a food business with local council
4. Apply for inspection of the unit

As our unit is rented from local council and it was stated it should be used as f&B business, so some steps such as premises license?

Also as we currently not yet got the premises yet so we have nowhere to register the company so this process can not be started I guess?

Looking forward to hearing from you

 

[fisicx]

It’s a reasonable plan but how much market research have you done?

Is there sufficient footfall to make it viable? Is there any local competition? Are you sure hot food without drinks is the right thing? Or maybe in summer the menu needs to change?

The limited company is important. It will help with insurance and reduces your risk if the business fails.

You will be directors not partners. Your income will be from dividends unless you are employees of the company. Get an accountant to best advise on the company structure.

 

[Scalloway]

If step 1 is indeed your first the lease will be in your own names, which means if the company folds you will still be liable for rent payments.
You can initially register the company with a temporary address eg your accountant's or lawyer's.

 

[Timothy Li]

It’s a reasonable plan but how much market research have you done?

Is there sufficient footfall to make it viable? Is there any local competition? Are you sure hot food without drinks is the right thing? Or maybe in summer the menu needs to change?

The limited company is important. It will help with insurance and reduces your risk if the business fails.

You will be directors not partners. Your income will be from dividends unless you are employees of the company. Get an accountant to best advise on the company structure.

Thank you so much for the advice, I would like my business partner to have some rights in the company which is why I am thinking about partnership. Will try to get accountant to try to set up the business structure first

 

[Kerwin]

Thank you so much for the advice, I would like my business partner to have some rights in the company which is why I am thinking about partnership. Will try to get accountant to try to set up the business structure first

You can make your business partner a director and/or a shareholder. That will be fine for giving them rights in the business.