Are you running a small business and wondering how you can go about registering it as a company? This post will help you to understand how to do it quickly. Company registration allows you to grow your investment and relieve yourself of stress with the advantages that come with owning a company.
When we talk about company registration, people think that only multimillion firms qualify for the title. However, you can register a company even if you have a small business that operates in your city or neighborhood. What matters is whether you follow the local business registration requirements and consumer satisfaction.
The tips in this post will help you to achieve the best of registering a company. These ideas are not generic for the company registration requirements but also growth-oriented. Registering a business requires that you project your position in the future and optimize your market.
Follow these five exceptional ideas to register your small business as a company.
1. Prepare Necessary Documents
All company registrations require that you present your agreement, as the company owners, on how you own and intend to run your business. The crucial part of the documents you will need is the memorandum of association. But, what is memorandum of association? The MOA is a legal document that the company owners and shareholders present to the Companies House to register their business.
This document details all the information related to the company and the shareholders. Without the MOA, company registration or formation would not proceed. The details to include in the document are the business address, company name, shareholders, and their shares in the company. The memorandum of association forms part of the company constitution. The other part is the articles of association, which describe how you will run the company.
These two documents must meet all the requirements of setting up a company. At the same time, you need to be careful with creating them because that is what you will stick with through the business process. Having a legal advisor or attorney will help you to form the articles and memorandum that will benefit you all as the company. Legal help means little to no need for amends.
2. Choose Your Name Wisely
As you have read from the first point, your business name is mandatory during the company registration process. But what is so important in a name? The name you choose should be what you intend to use for your business in the coming years. Change of name amid business establishment can be detrimental in various ways.
A name search is necessary for you to get an appropriate name for your company. You cannot register your small business if the name you choose is unavailable. But which name do you intend to search and register? Various factors can affect your business name registration process. For example, do you plan to expand your business to other regions or countries? Check if the name is registered elsewhere.
Trademarking a name might also be beneficial, and you need to find one which is available to take your business to the next level. Also, consider business branding and digital marketing. Finally, make your name easy to read and understand.
3. File Your Details for Registration
Once you have your company information and documents, you can file them for registration. All legal documents are necessary for the registration to proceed. Remember to include the name you choose to register for your company, with its appropriate business structure like LLC (or LLP), PLC, PVT.
Your business address is also vital. Where do you operate your small business from? As a company, you will need a publicly accessible address, and you should register it as an office. You might want to move your business to a registered address if necessary.
A registered business address makes it easy for all official communication, and you cannot use an alternative one for business transactions. Your communication with Companies House and all other administrative bodies will be through this address, and you should display it on your letters, website, and social networks.
Remember to pay the company registration fees. The total cost varies depending on your location. For example, in the UK, you would pay £12 for the registration. The process is available either electronically or by post. You can also register a company with a company registration agent.
4. Apply for Employer Reference Number
A business operating as a company pays employees. Even directors of a company are the employees, and they earn salaries from the company income. To manage company employees, process their wages, and fulfill business tax requirements, you need to have an ERN.
This number is required to identify your company when processing tax for your business and the employees. You will also need your ERN to open and operate a business bank account as a company.
In the UK, you must register the reference number for your company before the first payday. However, you cannot register for this if you do not intend to start paying employees in the next one to two months.
5. Open a Business Bank Account
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Without a company registration, you might have been using a personal account to operate your small business transactions. But now, since you want to expand your operations, you need to run a business account.
As a company, every transaction needs to be separate from personal income and expenses. You do not want your audit to fail when filing your tax obligations and claims and other essential documents that require business account transactions.
You will use the business account to receive all the payments for the sales. Use it also for making payments to your employees. Whether you are only two or 50 workers in your startup, your salary must come through your business account. Remember that you are also an employee once you register as a company.
Summary
Setting up a company and registering it can be a nightmare for most people, especially when you do not have the correct information. However, if you have been running a small business in your city, you can now transform it into a company. Make your operations feasible and reduce your liabilities and obligations while optimizing your income and management.
