As leading providers of company formation services, we have had the opportunity to work with countless directors and CEOs in setting up their businesses in a range of different sectors. Because of our extensive industry experience, our team has learnt a lot about forming a company, and we believe many of our findings should be a staple for those starting a business.
So, today we’re exploring this helpful advice to help you better understand where to start and how Company Registrations Online can assist you in setting up your company correctly and in accordance with the law.
1. Consider Matters and Impacts Before Starting
Thorough planning and preparation before starting a business can help increase the chances of success and minimise potential risks. When forming a company, rash and sporadic decisions are not recommended. We recommend extensive planning and thought processing before making any concrete moves which could tie you in financially or legally. This is because it allows you to:
- Clearly define and understand your business idea, goals, and target market.
- Conduct market research to assess the demand for your product or service.
- Develop a comprehensive business plan with realistic financial projections.
- Identify potential challenges and develop strategies to overcome them.
- Secure necessary funding and resources to start and grow your business.
- Ensure compliance with legal and regulatory requirements.
Thoroughly thinking through these and other important aspects before starting a business can help set a solid foundation for long-term success.
2. Receive a UTR Number
A Unique Taxpayer Reference (UTR) number is a 10-digit number assigned by HMRC to individuals who are self-employed and limited companies for tax purposes. Receiving a UTR number is crucial when forming a company in the UK because it is required when registering your corporation tax with HMRC. Failure to obtain this number will result in complications and potential legal issues, as it will appear as if your business is avoiding transparency regarding tax.
Your UTR number should be kept safe throughout your time in business as it is essential for HMRC to communicate with your company regarding its tax affairs. Submitting for a UTR it should be at the top of your to-do list when establishing a compliant and organised tax process for your company.
3. Open a Bank Account
Opening a separate bank account for your company is essential to forming a company. A unique account allows you to manage your company’s finances much more efficiently and help establish a clear boundary of what money belongs to the business and what money belongs to you personally. It also provides the opportunity to grow and employ a professional to take care of your business finances without having complete access to your personal finances.
Not only will this help you track business expenses and income much easier, but it will also enhance your business’s credibility with suppliers, customers, and investors. Finally, it is often a requirement for legal and tax compliance purposes, so it will ensure you don’t face any legal issues within your finances.
4. Set Up a Website
In today’s society, having a company website is just as important as many other essential elements to your business. Maybe not in a legal sense, but it is key when it comes to brand awareness and allowing your company to reach its target audience, providing them with key details of what your business offers and the ability to adapt as you grow.
Today, there aren’t many businesses that don’t have a website, and those that aren’t online are missing out on a vital marketing and communication tool. A website is your platform to showcase your products or services to a wider audience and helps establish a professional and credible image for your business. If you fail to set up a website or a digital presence, you risk appearing unreputable and untrustworthy, which could have a detrimental effect on your company.
5. Organising a Trademark and Directors Meeting
Organising a trademark and directors meeting helps you to establish clear roles, responsibilities, and expectations for company directors. Additionally, it acts as an excellent opportunity to discuss and make decisions regarding protecting the company’s brand and intellectual property through trademarks. Setting these boundaries early on means everyone is clear in their roles, and there will be minimal (if any) disagreements later.
This is especially important for a Private Limited Company (Ltd), Limited Liability Partnership, and a Public Limited Company.
6. Organising your Documents
Getting your documents in order, such as shareholders’ certificates, is essential when setting up a business. If you begin the process unorganised, it will only mean that you continue unorganised, so starting as you mean to go on is always advised. Additionally, it will help you establish a clear understanding of your company’s purpose and goal and ensure complete legal compliance at every stage.
Our company formation packages provide the support you need to ensure your documents are in order, so please explore the options available on our website to see how we can help.
7. Seeking Help if You Need it
As mentioned, seeking help from professionals, such as ourselves, is essential in forming a company. Nobody will get it right the first time on their own, and there will always be hiccups that cause delays and set you back, so you must have support through these times.
We have had years of industry experience and have helped countless directors set up their companies, so we are more than equipped with the knowledge and expertise to guide you through the crucial initial stages of company formation.
If you require our assistance or want to learn more about our company formation services, please contact our team.