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IT service providers and consultants are the superheroes of the 21st century. Most businesses and households are reliant on computers and the internet for everything from banking to finding out information, to managing their contacts and calendars. 

IT companies and consultants not only provide helpdesk support, but also monitor servers, unleash disaster recovery plans, and operate and monitor system security. If this sounds like the right career path for you, below are a few things to consider before starting an IT company.

What qualifications do you need to set up an IT company?

When starting a tech company, you may need some background and experience in different types of software and hardware support and maintenance. However, a computer science degree from a university is not a prerequisite for getting potential customers and starting a business. 

Being an IT company business owner requires an entrepreneurial spirit, people skills, and a desire to provide exceptional service. These are much more important than formal qualifications to set up this type of business. 

Focus on a niche area of IT

The IT space is crowded but the need for skills and expertise is growing all the time, and every day there are more and more companies that decide to outsource their IT services. 

Focusing your business idea on a niche IT service or particular market sector is a great way to become known as the ‘go-to’ company in a certain area. Much depends on the extent of your ambition and personality – would you get bored doing only a limited number of products or services? 

Remember, many businesses start off serving a wide market and naturally narrow down over time. Doing some market research could be a good idea if you want to get a grasp of the current landscape of the area you wish to work within.

What are the laws and regulations owners of IT companies need to be aware of?

When starting the process of setting up a new company in the UK, you first need to decide what type of limited company you want to set up. If you are setting up a limited company in the UK the most popular route is a private limited company.

You will then need to register your company with Companies House. This will require you to draft Articles of Association (you can use a our Articles of Association template ) and if there is more than one shareholder, it is advisable to have a Shareholders Agreement.

During your journey, you will also need to familiarise yourself with various regulations such as the UK GDPR, the directors’ duties under the Companies Act 2006, health and safety laws, employment laws, HMRC obligations, and consumer laws to name but a few. 

This may sound overwhelming, but do not panic, there are numerous support organisations in the UK dedicated to assisting startups and our friendly team at LawBite are always available to advise you on any legal matters.


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LawBite has years of experience helping early stage startups and small businesses achieve their long term commercial ambitions. To find out how we can support you in starting an IT company/consultancy, book a free 15 minute consultation with one of our expert lawyers.


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