By Lesa 
For any entrepreneur looking to especially their new venure as an established company, registration of such is important to do. It is the first milestone to make as a business owner but involves navigating legal, financial and administrative requirements that you might not be knowledgeable of.
Understanding the basics can help to make the right decisions and ensures a smooth launch, preventing future penalities. Here are five essential tips every first-time entrepreneur should know about registering a company for the first time.
1. Choose the right business structure
For company registration, you firstly need to pick the right business structure according to your needs and wants. Selecting the appropriate legal entity is crucial as it dictates your tax obligations, administrative burden and legal liabilities.
The options are as following:
- Sole Trader – Simple and quick to set up but you have unlimited liability meaning your personal assets are at risk if you accrue business debt.
- Private Limited Company (Ltd) – Separates your personal finances from the business, reducing liability. Formal registration made through Companies House.
- Partnership – Shared responsibility between two people or more. Each person is personally responsible for debts.
2. Verify name availability and trademark rights
Once you’ve chosen the legal entity type, you’ll want to choose a name. This can be an exciting and creative stage of the process but the name must comply with regulations. A company name cannot be the same or too similar to another one in existence as a registered company or trademark.
Use the Companies House name availability checker to ensure that the name is free. Check the Intellectual Property Office database to ensure you’re not infringing on any existing trademarks either.
It’s also useful to check if the corresponding domain name for your website is available, in order to maintain brand consistency.
3. Understand your tax obligations and deadlines
It’s useful to understand any tax obligations and deadlines you might be subjected to when it comes to formalising a company.
Different structures will have different requirements. For example, limited companies have to register for Corporation Tax within three months of starting to trade. VAT is something to register for if your annual turnover exceeds the threshold of £90,000.
As a sole trader, you’ll need to register for self-assessment tax and National Insurance with HMRC.
4. Appointment directors and define PSCs
When registering a limited company, you’ll need to legally appoint at least one director who can also be the sole shareholder.
It’s worth knowing that these directors will be available to view as a public record. Their service addresses and in some cases, residential addresses will be placed on the public record at Companies House.
You’ll want to identify PSCs – people with significant control. This includes anyone who has more than 25% of shares or voting rights. You must also prepare and adopt ‘articles of association’ which are internal rules for running the company.
5. Secure a registered office address
Finally, you’ll want to make sure you’ve secured a registered office address. Every limited company must have one and it’s an official address for receiving governt post, legal documents and tax authority correspondence.
This address will also be made public. If you’re looking to maintain privacy then you may want to register a virtual office service or an accountant’s address instead. This avoids using your home address.
By following these tips, you’ll ensure company registration is done properly for the first time.