If you have created a business and it is ready to be registered, it is an exciting time. However, you must think about what type of company formation is best for you – public limited, private limited etc. This process can appear daunting to a novice, but it does not need to be. This is a guide on how to register a business within the UK.
The following provides some of the main requirements for a limited company in the UK.There must be a minimum of one director, one shareholder and an optional company secretary. The director can act as the company secretary or shareholder.
A sole director can be registered, but he/she should be able to carry out all the secretary’s roles and responsibilities there is no age restriction for a company director, but be aware that Companies House will advocate that the person is at least 16 years of age.
This is because people under this age will not understand the legalities of running a business, nor have the experience to be a company director. The Companies Act 2006 specifies that there are no restrictions on members and shareholders being from other countries. Company officers are also free to be from anywhere in the world. However, these members/shareholders/officers do not gain any rights to live or work in the UK.
If you register a business in the UK, you must have a valid office address in England or Wales, and this will be on public record. Official company documentation must be held at the registered office. However, this does preclude you operating your business from any other jurisdiction worldwide. Limited companies must be registered with Companies House.
They will need to file certain essential documents in order to be incorporated and some of these will be required to be filed annually. Companies House provide a Web Incorporation Service for new businesses to form their companies online. This also acts as a joint registration service with Her Majesty’s Revenue and Customs (HRMC) when a limited company is registered.
Any income achieved before incorporation can be declared at this time. HMRC also has its own registration service online. All new companies must inform Her Majesty’s Revenue and Customers (HMRC) within three months of starting their business and when they become liable to pay Corporation Tax.
Any tax due must be paid and subsequent company tax returns must be filed electronically and on time. HRMC will create a record for each company and give it a Unique Taxpayer Reference (UTR). In addition to this number, which must be kept safe, you will be supplied with a form CT41G (Corporation Tax – Information for New Companies).
You should study this form and undertake any necessary actions without delay. You can also register a business for PAYE (Pay as You Earn) and/or VAT at this time too. HRMC will ensure that their records of your company include all the information you have supplied. They will remind you when Corporation Tax and Tax Returns are due. You will receive an activation code (pin) by mail which you must activate immediately you receive it. This allows you to set up Corporation Tax Online. As a new business, you may be liable to pay other taxes, for instance, PAYE if you have employees, and VAT when this becomes applicable.
In effect, your company is deemed an employer for directors and staff and will thus need to deduct PAYE and National Insurance Contributions (NICs) each pay day if applicable. Value Added Tax (VAT) will become payable when income exceeds the VAT threshold (currently £77,000). Annual VAT returns become mandatory thereafter.
You, personally, as the company director will be required to complete and file a Self-Assessment tax return. This informs HMRC about your personal income and expenses. If you wish, you can use a tax adviser or accountant to deal with these matters on your behalf, but HMRC must be notified of the agent’s details.
Corporation Tax records must be kept and filed by the company, and used to complete the annual Company Tax Return. Author Bothe the following article was brought to you by http://www.a1companies.com/. They specialize in company formation and also offer extensive administration and business services.