Do Businesses Have To Register

In that location's a lot to think about when setting up a business, whether yous're a sole trader or opening a limited company. You volition need to tell HMRC that you lot're self-employed and operating as a sole trader and then that y'all can fill up in Cocky-Assessment revenue enhancement returns and pay the right amount of tax you owe.

But do yous need to register with Companies Business firm? The quick answer is that no, a sole trader business organisation does non demand to annals with Companies House.

Read our guide to Registering as a Sole Trader to get started.

What is Companies Firm?

All limited companies must register with Companies House, who will make the visitor information publicly bachelor on their website. This ways companies must provide the details of who their shareholders and directors are, besides as file a copy of their almanac financial accounts.

Does that include sole traders?

Sole traders don't demand to register with Companies Business firm, only those who want to operate as a company demand to register. If you lot set up a company, yous'll still need to register with HMRC as a company manager for Cocky-Assessment though.

So how do I register as a limited company?

If you change your mind and decide that you'd rather operate as a limited company, so you will need to register with Companies House as soon every bit possible. Y'all volition need to register inside iii months of starting your concern in order to be trading legally.

In order to annals your company y'all will need to register either online or by post. Doing it online is quicker and cheaper. It costs £12 and your company is normally registered within 24 hours. Watch our video about incorporating a limited company if you're already in business equally a sole trader.

If y'all do it by mail, y'all'll need to fill up out a IN01 form. This method takes longer, usually between 8 and ten days and will cost you £40. This will demand to be made out in a cheque to Companies House.

To speed the process up and get your company registered on the same day, you'll need to go your application in to Companies Firm by 3pm and pay a £100 charge. You lot volition as well take to mark your envelope as "aforementioned day service" in the tiptop left hand corner.

After registering, you'll become a Document of Incorporation which confirms your company exists legally. Information technology volition also bear witness your company number and the date of formation, both of which volition be important for when you file your tax returns so keep information technology safe.

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About The Author

I'g an experienced and fully AAT and ACCA qualified accountant, who is enthusiastic about helping business organisation owners succeed. I as well love cooking and needlepoint (at different times!). Learn more about Beth.