Starting a new business is an exciting journey, but taking the right steps from the outset is crucial to ensure legal protection and long-term success. That’s why EKW Group has created the “Getting the Basics Right” series—designed to guide startups through the essential steps and complexities of launching a business.
The first crucial step? Registering your business. This process establishes its legal identity, ensures compliance with regulations and helps secure the necessary licences and permits. We’ve simplified the steps to ensure you meet all legal requirements and lay a strong foundation for your new venture.
Choose a business name
The first step in registering your new business is choosing a unique, memorable name that reflects your brand. When registering a limited company or LLP in the UK, ensure your chosen name isn’t already in use by searching the government’s company name availability checker or Companies House. Once you’ve found an available name, you may also want to consider registering it as a trademark to protect your brand and avoid legal disputes, ensuring your business name is distinctive and secure for branding and marketing.
Decide on a business structure
Once you have named your business, the next step in registering is to choose a suitable structure, as this decision influences financing options, tax obligations and public information. Researching different business structures and their strengths is crucial during the registration process. These include:
- Sole traders: Complete control over all aspects of your business
- Partnerships: Allows for shared decision-making and resources
- Limited companies: Offers personal asset protection by being a separate legal entity
- Limited liability partnerships: Enable collaboration while providing limited liability protection
- Register with Companies House
If you’ve chosen the sole trader structure for your business, this step doesn’t apply to you. While all limited companies must register with Companies House, sole traders are exempt. If you’ve opted for a private limited company, public limited company or limited liability partnership, this is your next step.
Registering a business involves preparing several key details, including:
- Registered address
- Directors
- Shareholders
- Memorandum and Articles of Association
Registration can be completed online, and you will receive a Certificate of Incorporation which confirms your company number and legal formation once completed.
Set up a business bank account
The next step in registering your business is to research banks that offer business accounts tailored to your needs and to open one that suits your business. You will typically need to provide key documents such as:
- Company’s registration number
- Proof of identity
- Proof of address
- Details of your business’s directors or shareholders
- Unique Taxpayer Reference number (UTR)
Register for taxes
The fifth and final step in registering your business is to register for relevant taxes, determined by your business structure. These include:
- Self-Assessment Tax: Sole traders must register with HMRC online to file Self-Assessment Tax returns
- Corporation Tax: Limited companies must register with HMRC online within three months of starting to trade
- VAT (Value Added Tax): If your taxable turnover exceeds £85,000, you are required to register for VAT
- PAYE (Pay As You Earn): If you plan to hire employees, you must register as an employer with HMRC and establish a PAYE scheme
Some industries, for example construction, may have additional steps for tax registration. Contact EKW Group to see if this applies to you.
How can we help?
Following these steps will give you a solid grasp of the business registration process. However, you may still need professional guidance. At EKW Group, we provide expert advice for new startups, ensuring your business starts strong and has the resources to thrive.
Businesses should also consider the upcoming changes announced in the 2024 Autumn Budget. A full summary can be found here.
If you would benefit from more detailed business guidance, please don’t hesitate to get in touch with a member of our team on 01942 816512 or email:
Chris Barlow, Tax Manager: [email protected]
