There are several things to consider when you decide to start a business. One of the most significant requirements to get a business up and running is a structured process and planning. There are chiefly three different accounting and legal structures in business. You can do it alone by being a sole trader, operate a limited company or form a partnership. You can also opt for an unincorporated association if setting up a voluntary group and don’t intend to go for profits.
Regardless of the structure opted for, it will define
- Paperwork that must be filled in to get started
- Personal responsibilities if the business makes a loss
- Taxes to be paid
Though you can change the business structure later, it is easier to get things right from the beginning.
Limited Company Requirements
There are a few requirements that all limited companies need to fulfil.
- The organisation must register itself at the Companies House
- Annual Return (Form AR01) needs to be completed every year. This ensures that the Companies House record updated information about the organisation.
- The HMRC needs to be informed in case the company has taxable income or profits on an annual basis.
- The limited companies must complete corporation tax annually.
Here are a few ways to register a business.
Pick up a Good Company Name
A good company name can be a real asset to a business. However, this is something that most people agonies on or rush to a hasty decision only to regret later. There are several rules that govern what can be chosen as a company name while a new company is registered. The most important of them is that it has to be different from the names that exist already. The new companies must get this name approved.
Also Read: Do’s & Don’ts While Setting up a Business
Decide whether You Should Use a Company Formation Agent
The company formation agents are deft at incorporating different types of company. They can offer you legal consultancy and specialist advice. Professional and seasoned in catering to the field they are in, they can save extra money too.
Assemble Details Necessary for Registering a Company
You require several pieces of information to register a new company. The information required chiefly includes:
- Name of the company
- UK registered office address where the Companies House will direct all official mails. This will also appear on company record.
- Details of share capital to be created. For private companies limited by shares, at least, one share is to be issued.
- Initial shareholder details; there needs to be minimum one initial shareholder. He can be the same person as the Director of the company.
For each shareholder, Director and the secretary, apart from the basic details, a few pieces of identifying information for security are essential. This can be the National Insurance number, mother’s maiden name, passport number and father’s first name.
File Incorporation with the Companies House
You have collected loads of information. Next, you need to send them to the Companies House to get approval. There are three different options. Different fees are charged by the Companies House for these options.
The options available include
- Web incorporation service
- Electronic software filing
- Paper filing
Wait for Company Formation to Get Approval
You cannot begin operating as a limited company till you get approval from Companies House. It will undertake some checks of the information that has been submitted. If you file it online, your company will get approval faster. If you are registering a new company using paper forms, it will take time to get approval.
Hold the First Board Meeting of the Company
As soon as your company gets approval from the Companies House, you need to hold a meeting to cover the essential formalities. It is advisable to do this within a few weeks of registering a company.
Tasks to Complete after Registration
As soon as the company is registered, it’s time to undertake a few tasks. This includes:
- Setting up bank account
- Registering with the HMRC
- Registering as well as setting up PAYE for the employees
- Set up a website, if you want the customers to find you online
Regardless of the ways you opt to register your organisation, make sure it’s right type of business for you. Though the process today has been made easy with the online application, be aware of the obligations.