Ensuring Compliance is being met with Companies House
Ensuring compliance is being met with Companies House is one of the most important things you need to complete. Starting your own business brings a tidal wave of emotion and in the early stages there are many key decisions for you to make. One of the biggest decisions you need to make is to decide whether to be a Sole Trader or Limited Company.
I once had a client who had decided to become a Limited Company but had not completed all the necessary legal requirements. This blog post is for other new businesses who may be in the same position.
- What does having a limited company mean?
- What is Companies House?
- Why do you need to register with Companies House?
- What do you need to do to ensure you are compliant?
- Information that should be submitted.
- What can Companies House do for you?
- How Busy Lives! can support you with this
What does having a Limited Company mean?
- A Limited Company is legally separate from the people who run it.
- It has separate finances form your personal ones.
- You can keep any profits your company makes after paying tax.
- Incorporation with Companies House is the term used when you set up the private limited company with Companies House.
What is Companies House?
Companies House is a government run service. Its responsibilities are to ‘incorporate and dissolve limited companies…register company information and make it available to the public’ (Gov.uk, 2020).
Companies House has four offices in the UK: Cardiff, Edinburgh, Belfast, and London. However, all their services are available online. When registering your company be sure to register with the correct office. Cardiff for England and Wales, Belfast for Northern Ireland, and Edinburgh for Scotland.
Why do you need to register with Companies House?
All limited companies (a business that is a company in its own right) and limited liability partnership (LLPs) are legally required to register with Companies House.
What do you need to do to ensure you are compliant?
When setting up a limited company you must register with Companies House. Where your business is located will determine which of its branches you will be dealing with.
Important to Note:
Your company can operate in multiple UK jurisdictions, but the office address must remain in the area you registered it. For example, a company registered in Scotland can operate in Wales, but the home office must stay in Scotland.
Information that should be submitted
- Company name.
- The correct address for the company. This can also be registered as a correspondence address through your accountant if you don’t wish the general public having access to your home address.
- Name of who the Director/s.
- Details of your Companies shares – you need to have at least one shareholder.
- When you register a company you need to provide information about the shares which is known as a ‘Statement of Capital.’
- All shareholders names and addresses should be given. Shareholders are technically known as ‘Members.’
- If you have shareholders other than yourself you also must then have ‘prescribed particulars’ for them.
- A SIC code needs to be in place. This means Standard Industrial Classification. This identifies what your company does.
- Memorandum of Association.
- Articles of Association.
- PSC which is details of People with Significant Control.
- As the company director you are legally responsible to ensure the company accounts and reports are properly prepared. Many businesses use their Accountant to do this on their behalf.
- You should be registered for Corporation tax and PAYE as an employee at the same time as registering with company’s house within three months. You may get a penalty fee if this is not done within this period.
Once you have registered with Companies House you must ensure you keep them up to date with any changes to your company this includes:
- Appointing new directors / secretaries and changes to your PSC’s.
- Changing your company name.
- Changing your registered office’s address.
- Changes to your accounting reference date.
- Changes to your share information – i.e. if you sell more shares.
- Any mortgage information.
What can Companies House do for you?
- As well as documenting all limited companies, Companies House is responsible for keeping all data up to date and removing / prosecuting non-compliant companies. You can use Companies House to file documents online using their software. Completing documents online is often easier than filling in paper forms. As well as giving data you can also download data from their website.
- Another important service provided by Companies House is the ability to search for disqualified directors and information on other companies, this could include your company’s competition!
- Companies House has protected online filing meaning your company is protected from fraudulent changes to its records.
- You can also sign up for ‘Follow’. This is a free service that alerts you of company transactions, including what has been filed and accepted by Companies House.
- Companies House also allows you access copies of certified documents held on their register and certificates of incorporation with certified facts.
Registering with Companies House can be pain-free process provided you gather all the required information beforehand – you will need 3 pieces of personal information about you and your shareholders / guarantors (for example, national insurance number, passport number, town of birth or parent’s names).
Once you are registered don’t forget you will need to keep you Companies House records up to date, which is available to do online.
How Busy Lives! can support you with this
Busy Lives! was created when I left a busy career that left me time poor and unable to give sufficient priority to what really mattered to me. I now provide a wide range of business support for people in that position.
I am happy to help by checking your paperwork is all accurate, up to date and submitted with companies house.
Busy Lives! relevant links to this blog post:
- Business support for the running of your business. https://bit.ly/2sLMt7E
- Small business support case study. https://bit.ly/36cTYSJ
Let you help you gain precious time back. Ring Busy Lives! 07565 722 031
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