How To Register Your New Business

Registering a business can be done in a few ways depending on whether you are a sole trader, limited company or partnership. A company needs to be registered to be legally recognised in the UK.

Sole Traders

To register as a sole trader you need to let HMRC know that you are self-employed and you will need to pay tax through self assessment for the business. This means you will have to manage your own taxes every year. If your turn over is over £85,000 you will need to VAT return.

A sole trader must :

• Keep record of all sales and expenses
• Pay income tax and national insurance applicable to you
• Pay any business rates for the premises you are based
• Include your name and business name on any paperwork

Limited company

A limited company is a separate legal entity and the finances are separate from your personal finances. You need to make sure you register your business with companies house and HMRC

Information that will be required to register your Limited Company;

• Company name followed by LTD or Limited
• Details of shareholders in the business
• Business Address
• SIC code
• Shareholders needs to agree to signing memorandum and articles of association that shows the agreement to running the business and the rules of the company is run
• REgister corporation tax within three months of registering

Partnerships

 You will need to register with HMRC and choose a nominated business partner. The partner will be responsible for all the business records and tax returns of the business. Business partners are responsible for paying their own tax on their share after splitting profits.