What are the most important steps after setting up a Business? | More Group International

What after Business Incorporation?

So, you’ve had an exciting innovative idea and you’ve decided to build a business. To set up a private limited company you will need to register with Companies House. This is known as business incorporation and to incorporate your business you will need the following:

• ·         A company name
• ·         A registered office address (If not click here to get virtual address)
• ·         A minimum of one director
• ·         At least one shareholder (or more) and the share details
• ·         A SIC code (classifies your business)

·        Memorandum and articles of association (an agreement and rules made by the shareholders to create the company)

·         PSC (people with significant control) details

Submitting these documents to Companies House to register your business is the first step to setting up your new company. After this you should receive the Certificate of Incorporation and other documents confirming the registration in the post…but what next!

There are countless things to consider after company formation, this blog will outline some of the most important points to consider, aiding your company’s successful development.

 Statutory Registers

The Certificate of Incorporation from Companies House confirms your business registration, but it does not prove you own the company. Additional legal documents must be completed to register company owners. These documents should include:

• A statutory register of members – this is a list of company shareholders including the original subscribers to the memorandum of association. The information listed should state the name, address, a number of shares, class share and the date when they were issued.
• A statutory register of appointed directors – this should include the full names and addresses of directors and the director specific interests in company assets.
• A statutory register of charges on company assets – as well as being included on the company statutory books, a separate register of charges, mortgages and debentures must be kept by your business.

Register for Corporation Tax

HMRC require you to register for Corporation Tax within 3 months of starting business. Actions that mean your business is active include buying, selling, advertising, renting a property and employing someone. So once any of these activities begins you have 3 months to register for corporation tax.

Once you have incorporated your business with Companies House you should receive a 10-digit Unique Taxpayer Reference (UTR) within a few days, this will be posted to your company address. You need your UTR to register along with your company’s registration number, the date your started doing business and the dates for your annual accounts. 

Open a business bank account

Setting up a business bank account can help you manage your company’s cashflow. It is important to have separate personal and business accounts, this will prevent them interfering with each other and will make keeping financial records easier. It can take a couple of weeks to open a bank account so be proactive and start the process as early as possible. Our consultants at More Group can refer you to a highly talented business banking specialist who can help you complete this process efficiently by business bank account opening service.

Register for VAT

The amount of VAT you pay, or whether you pay VAT at all will make a big difference to how you price your product or service. Therefore, it is important to investigate this early and work out what VAT your business is liable for. VAT registration requirements and rates will fluctuate depending on where you are conducting business. If you are going to trading overseas in multiple locations, you might be paying different rates of VAT in different countries – so be extra vigilant. In the UK you only need to register for UK VAT once your turnover surpasses £85,000 per annum. 

Most countries in the EU do not have VAT registration thresholds, so in these countries it is essential all businesses register for VAT. To ensure your business is compliant with VAT it can be helpful to consult a VAT specialist. At More Group we offer VAT services, so as a client you can feel confident you are paying the correct amount of VAT.

 Setting up payroll

Whether this is paying yourself or staff you will need to establish a payment system.

The Pay As You Earn (PAYE) system is a legal requirement for businesses. It is HMRC’s way of collecting taxes from employment. Under this system you deduct income tax and national insurance from your employees before paying them their wage. You can choose operate PAYE either by hiring an accountant or using payroll software to do it yourself. Many businesses find it beneficial to outsource payroll to specialists who are experienced at setting up and running payroll. At More Group we can offer you expert payroll services, giving you one less thing to worry about as a business owner!

If you have shareholders in your business, you will need to set up dividend payments. These pay shareholders a dividend after tax profits, set these up to keep your investors happy.

Annual requirements

Every year your business will have to submit annual statements to Companies House. Failure to submit these documents will result in a penalty and if this persists your business could be shut down.

The documents that must be submitted include annual accounts, annual returns and a corporate tax return. Be proactive as a business owner, research what requirements each of these documents should have and put the deadlines on your calendar. Alternatively, you could partner with a professional accountant at More Group who can complete and submit these documents on your behalf. We will ensure your documents are prepared to a professional standard and are submitted on time.

Should you get professional help?

Many businesses find it highly beneficial to hire a company formation specialist early when setting up a company. Working with a specialist can help you to give your business a better start in life. With expert help you can build a robust business structure to suit the nature of your unique business. As your business develops you will be thankful that you made an investment early -think of it like building a house. Click here to get some small business accounting tips if you are settling with your own risk!

If you were building a house it would make sense to hire professionals. It would be risky to build it yourself, with no prior knowledge of how to lay foundations, wire or lay piping through the house. Skilled builders are capable of building structurally sound buildings – a much safer option!

Which house would you feel more confident moving your family and belongings into, one built by an amateur or one built by an expert with 20 years’ experience?

Moving into a badly constructed house might be a cheaper option in the short term. But what if hazardous electrics caused a fire, or the roof leaked. Everything inside the house could be ruined, causing a huge amount of disruption to your life – and costing you more money in the long run!

Now apply that scenario to your business – would you rather build a business round a corporate structure designed and implemented by a novice or an expert? I think most of us would chose the latter, although professional help might seem like a big investment, many of our clients actually save money in the long term because they have an efficient business system in place.

If you are interested in working with one of our experienced professionals to build your business, contact us today for a free initial consultation.