4 min
January 6, 2025
Chirag Majithia
Discover the essential steps to take after registering your Limited Company, from opening a business bank account to ensuring compliance.
Setting up a business is great, but it is only the beginning of the incorporation of your Limited Company. Once your business has been incorporated, there are several critical steps you should take to ensure you comply with the legal requirements while setting yourself up for success.
This in-depth guide will take you through what comes next, giving detailed insight and actionable tips which will drive your business to success.
You are going to need a business bank account through which your company will operate its finances. It separates personal and business deals for clarity in bookkeeping and for transparency in view.
Why Necessary:
Difficulties When Opening a Business Bank Account:
Research providers, comparing through charges, services and facilities. Some may offer one year's free banking while others provide direct links to popular accounting software.
The typical documents required to open a bank account in the UK include:
Overcoming Challenges:
Once your Limited Company is incorporated, you are required to register for Corporation Tax with HMRC within three months of starting business activities (e.g., trading, hiring employees or earning income).
Steps to Register:
Penalties for Non-Compliance:
Failure to do so will attract fines, so it is best practice to do this as soon as possible. Even when your company is not trading, you may still have to make a nil return to avoid any penalty. For example, when you are awaiting commencement and have registered, HMRC will still expect a record of your financial standing.
Your company needs to be registered for VAT, if the total taxable turnover for the past 12 months exceeds £90,000 or you anticipate the company’s taxable turnover exceed £90,000 in the next 30 days. However, even if your turnover is below this threshold, voluntary registration can offer strategic advantages depending on your industry and business model.
Benefits of Voluntary VAT Registration:
Authority - Many clients and suppliers recognise a VAT-registered organisation as more reliable and responsible. Just imagine a consultancy among corporate clients; being a VAT-registered company may raise trust in negotiations.
This will make it easier to trade with other businesses that are VAT-registered since the VAT charged on goods and services can be claimed back. Ease of transaction will lead to smoother partnerships, and smoother relations with suppliers.
Challenges:
Although there are quite a number of advantages of voluntary registration, several challenges are also involved:
As a director of a Limited Company, you are confronted with certain legal and financial responsibilities, failure to discharge which may attract some serious consequences. These would include the keeping of proper books and records and also statutory compliance and protection of the interests of the company. We outline some of the important ones here along with the consequences of failure in complying.
You are obligated to file annual accounts with Companies House, which represents the financial activities of your company. This includes a balance sheet showing the assets and liabilities and a profit-and-loss account, which summarises your income and expenses. Accurate filings not only avoid legal issues but also reflect the financial health of your business to stakeholders and investors. Late submission may attract fines and penalties, going up based on the longer the lateness persists, among other increased penalties for persistent failure to do so.
Every 12 months, you are required to file a confirmation statement to ensure Companies House has accurate information about your company. This includes details like the registered office address, director names, and shareholder information. Non-compliance can lead to your company being struck off the register, effectively dissolving your business.
These include:
Failure to keep these records may result in fines and expose the company to possible disputes and inquiries.
The different directors are to follow the various duties given in the Companies Act regarding the success of the company, reasonable care and skills, and also not to involve themselves in a situation which can be considered as conflict of interest.
Directors owe a duty to their company that it should observe the laws relating to employment, health and safety, and stakeholder agreements. Failure to pay employees' wages may lead to a claim through the employment tribunals, and failure to maintain standards of safety may result in fines through a regulatory body such as the Health and Safety Executive (HSE).
If your business employs staff, you must set up a PAYE (Pay As You Earn) system to handle payroll taxes.
Steps to Set Up PAYE:
Business insurance is important to your Limited Company for protection against certain financial risks that might arise. Common insurance covers include:
An online presence is simply a no-brainer in this decade. The following will get you started:
a. Get a Domain Name
Get a domain that reflects your business name. You can go ahead and check if your desired domain is available for registration on GoDaddy or Namecheap.
b. Build a Website
Even the simplest website with your service listings, contact details, and a short company description will build some level of credibility. Make a basic website on free/cheap resources like WordPress or Wix, requiring minimum technical ability.
c. Leverage Social Media to Your Advantage
Create profiles on LinkedIn, Facebook, or Instagram-depending on where your target audience hangs out. With regular and consistent posting and engaging, one can build visibility of the brand, thereby acquiring customers.
Accurate financial records are crucial for compliance and decision-making. Consider the following:
Although you have registered your Limited Company, a detailed business plan is essential for growth. Include:
Marketing Strategies - Define how you will attract and retain customers, including advertising channels and promotional activities.
A clear plan not only guides your decisions but also impresses potential investors and lenders by demonstrating foresight and preparation.
Most industries have their own set of regulations. Some examples are as follows:
These are those industry-specific rules that are often backed up by fines or even legal consequences in cases of non-compliance. Do proper research and, if required, consult with an expert to get more information.
Networking is the secret to growth. Join local business groups, attend trade shows, or partner with businesses that complement yours. Stronger relationships will result in referrals, partnerships, and visibility.
Company formation of your Limited Company itself is but the first step. In fact, the post-registration discussed activities, ranging from opening the business bank account to providing an online presence, will deliver solid grounds for successful development. Being well-organised, compliant, and proactive is the master key to achieving your objectives.
We Will Guide You Every Step of The Way
Frequently Asked Questions
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