What an exciting venture, offering opportunities to work across media, film, TV, theatre and more! A UK-based production company can tap into one of Europe’s most dynamic creative economies and gain access to global markets.
We have created a step-by-step guide to forming up your own production company, covering everything from choosing your niche to navigating the company formation process and looking at tax benefits for your business.
Define Your Production Niche
Your niche will impact everything from your business plan to your marketing approach. Key areas to consider include:
- Film Production: Producing feature films, documentaries, or shorts for cinema or streaming platforms.
- TV Production: Creating episodic content, including dramas, reality shows, documentaries or news.
- Commercial Production: Producing advertisements, corporate videos or promotional content for brands.
- Music Production: Creating music videos, concert films or audio productions.
- Theatre Production: Producing live performances, stage shows or recorded adaptations.
Choosing a niche helps clarify your focus, target market, and potential competitors, making it easier to create a focused business plan.
Let’s Get The Show On The Road!
1: Choose Your Company Name
- Be Creative: Ensure your chosen name isn’t being used by another company or trademark. You can verify this through the name checking tools throughout our website.
- Endings: Your company name must end with ‘Limited’ or ‘Ltd’.
2: Determine the Company Structure
- Shareholders: The shareholders are the most important people in your company as they own the business (often confused with Directors). You must have at least one shareholder to form a limited company.
- Directors: You must appoint at least one director. Companies House will need their personal details
- Company Secretary: This role is optional. If you are unsure, you should not appoint one. They can always be added at a later time.
3: Prepare Your Company Documents
- Memorandum of Association: The subscribers are the people who will be shareholders in the business. This document states the subscribers’ agreement to form the company and take at least one share each. Using our service we prepare this electronically on your behalf and submit this to Companies House.
- Articles of Association: Defines how your company will run, including rules about shares, directors’ powers and meetings.
Using our smooth service we can prepare this for you and send this to Companies House.
4: Register Your Company
- Online Registration: The most straightforward method is via our via our online Company Formation Service or the more arduous Companies House online service.
- Documents: Submit the Memorandum and Articles of Association.
- Information: Provide details like company name, registered office address, SIC code (Standard Industrial Classification for construction), director(s) details, PSC (Person with Significant Control) details, and shareholder information.
- Fee: There’s a government fee for registration, currently £50 for an online application.
- Post: Alternatively, you can send the documents by snail mail.
5: Get Your Company Number and Certificate
- Upon successful registration, Companies House will issue:
- Company Number: A personal identifier for your business.
- Certificate of Incorporation: This is your legal proof of being a limited company.
6: Registering for Corporation Tax
- HMRC: HMRC will obtain your registration details from Companies House. You will receive a standard letter around 2-3 weeks after your company is registered.
This is actually a notice to file a CT600 corporation tax return.
When you register with us we provide full guidance on how to do this.
7: Set Up PAYE if Employing Staff
If you will employ staff, you must register for PAYE (Pay As You Earn). This handles income tax and National Insurance contributions for your employees.
LaunchList® has thorough tutorials guiding you how to do this yourself, or you can request our help
8: Consider VAT Registration
- Turnover: If your expected turnover exceeds £90,000 per year, you must register for VAT. Otherwise, voluntary registration can be beneficial for reclaiming VAT on purchases.
LaunchList® has detailed tutorials to help show you how to register for VAT yourself, or you can request our help.
9: Acquire Necessary Permits and Licences
Depending on your production activities, you may need specific permits or insurance:
- Filming Permits: Necessary for shooting in public places or certain private locations. Check with local councils for required permissions.
- Music Licensing: Required if you use copyrighted music in your productions. PRS for Music or PPL licenses may apply.
10: Business Insurance
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- Public Liability Insurance: Covers legal expenses if someone is injured on set.
- Professional Indemnity Insurance: Protects against claims of negligence.
- Equipment Insurance: Covers loss or damage of expensive production gear.
- Employers’ Liability Insurance: Required by law if you hire employees.
11: Regular Compliance
- Annual Confirmation Statement: File this annually to update company details with Companies House.
- Accounts: File annual accounts. Dormant companies have simpler requirements.
LaunchList® contains self-help tutorials to show you how to manage filing your confirmation statement.
You can reach out to us for extra support and for accountancy recommendations via the MYCW client dashboard.
12: Registering a Domain Name and Obtaining an Email Address
In today’s digital age, an online presence is crucial for any business, including consultation companies.
- Domain Name: Choose a domain name that reflects your business identity. It’s often beneficial to align it closely with your company name for brand consistency. Use our domain registration service
Protect your Company Domain Name
Use our domain name search tool to find available names for your business.
- Email Address: Once you have your domain, set up a professional email address. We have “no technical skills required” email setup to allow you to create email addresses like info@yourconsultationcompany.co.uk. This not only looks professional but also helps in keeping business communications separate from personal emails.
This step enhances your business’s credibility, facilitates better marketing and improves customer communication, which are all vital in the industry where trust and professionalism play significant roles.
The Final Act
Careful planning, legal setup and a great market knowledge is required to start a production company. Define your niche, develop a solid business plan, build a strong brand and network like crazy within the industry. Then you can establish a production company that stands out in the competitive media landscape. Remember to stay flexible, adapt to industry changes and continually look for new opportunities as you grow your business.