Essential Do's And Don'ts Of Company Registration In UK
by michael-morha Aug 23, 2023 Views (204)


It is no secret that these shaky economic times have made it more critical than ever to establish a legitimate company in the UK. A registered business ensures you comply with the law and access various benefits related to tax and insurance.


You can never tell when you could need a helping hand in growing or sustaining your new establishment. Following all the required procedures is vital.


This blog brings out vital details about company formation and registration. You will learn the things you must do and those to avoid to ensure smooth and transparent business incorporation. Read on to brace yourself with the details you require before kicking off.


The Do's of Company Registration

Not everyone qualifies to register their business as a company. It is not about discrimination. The process involves compliance. You may have the assets but lack the qualifications. Even when you can do that, you must plan adequately to avoid disappointments.

Below are the things to do for successful company registration.


1. Determine Your Objectives

What do you want to achieve? Are you setting up a branch office, a subsidiary, or a new establishment? You can set up a company from scratch and reach your goals by outlining your expectations, the required input, timeline, and budget.




Research is vital for this step to bear fruit. Understanding your market and potential competition is essential for informed decisions. Begin by understanding what problems your customers want to solve. Your business must focus on providing viable solutions. An existing firm will not require this step as you already have traction in the industry.

2. Conduct Elections

An incorporated company differs from a sole proprietorship or partnership in many aspects. The significant thing to notice is the management model. The board can comprise family members, friends, or strangers, but you must conduct elections. This step allows everyone to determine the company directors and shareholders.

Also, remember to appoint a corporate secretary, the custodian of vital documents. Write the minutes that led to the elections and the outcome. Also, include the unanimous agreement to register the business as a company. Your choice between an LLC and a PLC depends on available members, shares, business type, and tax status.


3. Register an Office

Company registration compliance requires a valid, registered address. It is the base from which you operate your business. The office must be a location where someone can drop your mail or deliver goods. It is a requirement even for firms offering virtual services. For instance, you could be into dropshipping or digital marketing.

A residential address is not permissible in this step. You may opt to rent or buy a warehouse, office space, or shop, depending on the size of your company and budget. Startups and medium-sized companies often choose to rent for convenience and flexibility. Virtual service establishments can find affordable office addresses from business address providers.


4. Identify a Company Name


Business registration cannot go through without an approved name. Your company name choice must not match that of an existing company. Conduct extensive research and check with the government database before settling for your desired name. A professional company formation agency can help you through this step.

Things to Avoid During Company Registration

Registering a business may seem complicated, but it could be worse if you make the wrong decisions. Negligence, overlooking, and impatience are some of the wrong moves to avoid. You could get fined, sued, or even jailed if you fail to comply with the law. Below are common mistakes you must never commit during company incorporation.


1. Rushing Through the Process

Some people set up a business because it makes accessing loans, grants, and other benefits easier. Others do it for compliance but make the wrong choice about the type of formation they need. But you may face business stagnation or closure for failure to comply with the law.

It is vital to understand your needs and abilities. You can resolve the entity type that suits your budget, membership, and projection.


2. Non-Compliance

Company registration requires compliance with all necessary regulations in your jurisdiction. You cannot afford to break any of them when forming your firm. Some things you could miss can invalidate your registration or bar you from doing business in that locality.

Invalid filing is another mistake to avoid. For instance, you want to register your firm as a limited liability but do not present all the mandatory documents. Company registration requires the minutes of the formation meeting, share certificates, a list of directors, and articles of association. Besides, you must book the name you need and provide your proof of address.

3. Ignoring Professional Support




Many people keep everything they do secret. They never want to reveal their endeavors to anyone. But professionals are central in every step of your company formation and incorporation. You must contact a banker, business lawyer, accountant, and company registration agent. They can help you attain the required steps and advice on running the business.

4. Information Inconsistency

How many times have you misspelled your name and decided to ignore it? Such seemingly insignificant errors can be enormous when submitting formal documents. Company name misspellings or inconsistent information about members, shares, and objectives can void your company registration.

Double-check every detail before submitting your forms for registration. Pay utmost attention to the articles of association, minutes, and provided address. A wrong address will lead to lost formal communications from Companies House, the bank, or other stakeholders. A misquoted clause in the articles of association is a significant mistake that can cost you dearly.


5. Appointing Ineligible Directors

The company directors will head, supervise, and control the business. They are at the helm of operations and key stakeholders in your firm's success. Unfortunately, some people make costly mistakes here by appointing ineligible directors.

Age is a fundamental consideration in this step. The company directors must be at least 16 years old and maintain a clean record. A conviction for business-related fraud or criminal activity can render the person ineligible to serve as a director. Bankruptcy is another issue that could disqualify a director.

Only appoint credible people and check their eligibility status before submitting your documents.

Summing Up

Company incorporation is the ultimate decision to ensure your firm runs as a credible entity. It promotes legitimacy and reliability. But remember to follow the required procedure for a seamless process. Also, avoid mistakes and errors that can make your registration fail. Involve professionals in your decision-making to establish the perfect business structure.

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