The registration of the official name is the first step of starting a business and the completion of the registration process will give you a sigh of relief as you now have proof of turning your idea into a real-life business.
The process may differ depending on the type of the business and there is a piece of good news if you are a sole trader because you only need to register with HMRC within three months.
The HRMC will charge a tax return of your income as a sole trader based on your assessment at the end of a business year.
When establishing a limited company, the owner needs to choose a unique name and it can cost the owner some money to find a secure business name.
The registration of a business is a sign of legitimacy and you will eventually build a trust bond with your customers and investors.
The question that do I need to register my business UK comes to the mind of new business owners and the answer to this question is yes as registering their new company right on time can save them from losing everything when authorities will take action against you.
Some business owners tried to bypass this registration process but they faced some serious consequences and some of them even lost everything.
Benefits of registering a company name
A limited company with an officially registered name will pay less personal tax as compared to a company registered as a sole trader without doing anything illegal.
If your business fails after some time, you don’t need to worry about paying any loans as you are not responsible for any financial loss of your limited company.
Doing business with a big company shouldn’t be a problem as long as your company is registered as most companies look for limited companies as business partners.
Banks easily provide loans to limited companies and the owner can even sell shares of the company to meet the needs of the bank loan is not enough.
Plans for any worst possible scenarios are finalized at the start of the business so you can demise your company in a few steps.
Pensions of your employees are considered a legit business expense and there will be no tax on pension contributions.
Steps to register a business name
Here is a step-by-step guide to registering a company name in the UK without any prior knowledge about how to register the name at all.
Follow each step according to the given guidelines and you can register a company name in a matter of few hours without paying any extra fees.
Create an account by entering your email, address, name, and password on the Companies House website to start the online registration process.
- Check for the name of the company
- Choose the official address of the company
- Choose a SIC code
- Appoint the director of the company
- Enter the share structure of your company
- Give information about shareholders
- Sign the official statement of compliance
- Pay the company formation fee
Check for the name of the company
Go to the official website of the company registrar in the UK and enter your idea about the name of your company to check if it is already in use by some other company or it is similar to the name of an existing company using the name availability checker tool.
Beware of using any sensitive words or terms in the name of the company as it can land in your problems with official authorities of the said department.
Registrar can reject your submission if you don’t follow all the rules and the whole process will start from the first step that can cost you some extra money.
Using a word without the consent of the official department in the written form can result in rejection of your application to register the limited company name.
Write the official name of your company in all the supporting documentation and double-check it to remove any mistakes before you submit them on Companies House’s official website.
The business name and the official name of your limited company can be different.
After registering the name, you can apply for the trademark to make the name exclusive to your business so you can get compensation in case someone else uses it.
Choose the official address of the company
If the name of the company is available, the next step is to enter the official UK postal address of your new company so authorities can send official notifications to you in the future.
The address of the company will be made public and anyone can get the address from the official site so try to use the address of the office instead of the address of your home.
There is an option to enter the address of the official tax and accounts handler of your company.
You can get help from your company formation agent to receive all the official mails for you at their address and you will pick the mail from them whenever you want to keep your house address separate from your company information.
The address will contain information such as country of registered office, building number, street number, floor number, city name, postcode, post town, locality name, and the name of the street.
The address should contain the name of the country where you want to register your company and not the name of some other country to receive all notifications sent to you using the postal service right on time.
Choose a SIC code
A SIC code is used to state the nature of your business and what your business will do based on the official standard industrial classification of economic activities.
Each SIC code contains information about your company in the form of group headings and trade descriptions. The rules allow you to add more than four different SIC codes to a single application to register the limited company name.
You can change the SIC code at any given time and there is no restriction on how many times you can change the SIC code.
Any department can get complete information about your company using the SIC code to send you notifications accordingly.
Appoint the director of the company
The rule book says that there should be at least one director of your company and you need to name the director in the registration process or else your application be rejected in the first place.
The minimum age limit for the director of the company is 16 and there shouldn’t be something that can disqualify the candidate from being the director of the company.
You can make more than one director of your company divide the work and make your business running in no time.
Enter two public addresses of each director and officials will check the authenticity of each address before accepting your application.
Both official service address and residential address can be the same but then you need to add another residential address for the same director.
Double-check all the information and details of the candiate for the director before filling the application.
The director will run the business and prepare all the company accounts to start the business as soon as you get the OK sign from the registrar.
Enter the share structure of your company
Each limited company has shares and the application to register a limited company should also contain information about shares of the company and the statement of capital.
Choose the type and class of shares of your company from the given options and the total value of each share.
There is no limit of shares for a company and you can value the individual shares and collective shares at any given price.
Choose the currency of your company and enter the aggregate nominal value of each share as well as can prescribed particulars of shareowners such as the power of shareowners in making decisions of the company.
Give information about shareholders
The requirements for registering a limited company name states there should be at least one shareholder of a company that is made up of shares and all shareholders own the percentage of the company based on the number of shares they own.
A shareholder who owns more than 25 percent of your company should be stated as someone with significant control because they can make some powerful decision to change the fate of your company completely.
You have the option to change the nature of the control of someone who has significant control at the time of registration.
Enter the town of birth, telephone number, national insurance number, passport number, maiden name of mother, first name of the father, and color of eyes of each shareholder in the application.
You can enter data in three categories to complete the authentication process of a shareholder using their personal information.
Sign the official statement of compliance
The rightful owner of the company needs to confirm that he or she fulfilled all the requirements stated in the Companies Act as the process to form a new company is a legal exercise and leaving any loose ends may result in a loss in the future.
The statement of compliance is at the end of the registration application and you can sign it to send it to the officials to start the process.
It will give surety to the concerned authorities that you will run your business by following all the rules and never try something illegal.
Pay the company formation fee
Pay the fees to register the company online after entering all the information by following all the above steps.
Try to set up a business after applying and register your company for corporation tax within three months period after your company starts the business.
You can pay this fee through your credit card, debit card, or by using your PayPal account after submission.
The registration costs may differ depending on the type of registration you choose and the online registration process will only take 24 hours and the fees of online registration is 12 pounds.
Most business owners prefer this registration process as it easy and you don’t need to go to any government office.
If you happen to submit your application before 3 pm on a working day, officials will start working on it immediately and you will get the confirmation on the same day to establish your company.
The same-day online registration costs 100 pounds but you can save those extra pounds by choosing some other registration method especially if you are not in a hurry at all.
Submitting the registration application by post can take up to one week and it will cost you 40 pounds which is more costly than all the other registration processes.
Advantages of using ltd24ore.com to register the company
Nowadays, a lot of third-party services such as ltd24ore.com can help you with registration by only getting information from you and everything else is done by them.
These are the advantages of using ltd24ore.com to register your company without stressing your mind out.
- The cost to register your company is reduced and you don’t have to worry about filling in wrong information as everything is done by professionals
- You can consult with tax consultants to solve all your tax-related problems in the same subscription
- It features an artificial intelligence-based account software to take responsibility for your business accounts and keep a record of profit, cost, and loss, etc.
- You can contact a customer service representative using your email or phone number to get answers to all your questions
- Filing your tax returns can be done in a few minutes as you will receive ready-made tax returns with everything covered
- You don’t need a notary to open your company
- Experts will prepare all the accounts of your company according to your needs
- You can keep all your business data such as accounts and tax files on the internet to access them from anywhere around the globe