If you want to set up a limited company in the UK, first you must Register A Business Name In UK with Companies House. A registered company name demonstrates to prospective consumers and investors that you are a reputable operation.
Before registering a company name in the UK, consider the following criteria.
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How can you choose your company name?
The fundamental objective of a company name should be to explain the services you provide while being memorable and, if feasible, distinctive. Here are the main points to consider:
Be specific, avoid broad or vague
Choose a name that is neither too ambiguous nor too significant. Generic titles, such as – Melbourne Painting Service, are not only tedious but also challenging to recall. Furthermore, it does not distinguish itself from other suppliers. Consider the name PhotoBucket: it’s descriptive, not dull, and unlikely to be forgotten.
Use similar terms in unique ways.
Don’t be tempted to jam keywords into the name of your company. Using simple keywords such as General Motors is no longer effective. However, adopting a slightly adjusted version of similar keywords that describes what your firm is about works quite well. Using alternative forms of popular terms relevant to the service you’re delivering is an intelligent technique to come up with creative, memorable company names.
Maintain simplicity
Avoid names that are excessively lengthy or intricate. Remember that your business name should be attractive to your consumers. It should sound friendly, familiar, and elicit pleasant sentiments. Moreover, it should be easy to pronounce and remember, as well. It’s OK to be a little smart, but don’t go overboard.
Do not imitate your competitors.
Choose a name that is not similar to other firms in your field. It may imply seeming unoriginal and detrimental to your brand’s image. It may also suggest that prospective clients mistake your company with your competitors, making it more difficult to get repeat business.
Do not use your name.
Avoid utilizing your name unless you are a well-known brand. Your name says nothing about your company and will be meaningless to prospective consumers. This may even generate issues if you want to sell your firm or grow. However, there are a few instances when including the owner’s name into the brand name might work effectively.
Select a scalable name.
Choose a name that will help your company grow. For example, if you sell books, you may one day offer stationery or accessories as well. Furthermore, you may expand to other cities if your service is in a specific location. So, choose a wide name that may embrace your future expansion.
Requirements to register a business name in UK
Registering a business name in the UK is straightforward and may be completed on the internet. You may also do it by letter or via the Company House website, both of which cost £12. It would be best if you were transparent about your staff and the wages you pay them.
Legal Structure of a Company
You must decide on its legal structure before establishing your company with Companies House. The Private Company Limited by Shares is the most frequent form used by entrepreneurs. Legal Structures discusses the many sorts of legal systems.
Registration for Taxes
A firm must register with the corporate tax department three months after it begins trading. If you hold a work visa and have formed your firm in the UK as a non-resident, you may be eligible for the self-employed personal allowance award. With a work visa, you must pay taxes on the money generated by your firm.
Bank Account in the UK
Opening a business bank account in the UK is not legally necessary, but having one is beneficial. Receiving payments from a UK business client through your home bank might be costly due to high international money transfer costs. Furthermore, banks may demand it even if you are not needed by law to have a director and shareholder who is a UK resident.
Sole Proprietorship
The simplest method to establish a company in the UK is to become a Sole Proprietorship. This legal structure enables you to own the company on your own and hire or not recruit personnel. This business categorization includes freelancers and self-employed persons in the UK. To register as a sole trader, go to the Companies House website and register your firm.
Limited Liability Company (Ltd)
By establishing this limited business, you isolate its legal entity from yours and the other people who administer it. A limited corporation is formed by registering it with Companies House. Ltd shares cannot be traded publicly.
Documents to register a business name in UK
To register a business name UK, you must submit the following documents:
- Application for business registration (form IN01) and cost
- Association Memorandum
- Articles of incorporation (unless you adopt model articles in their entirety)
- Please provide further details if your application contains a sensitive term or phrase.
- If your selected business name is the same as another name on the registrar’s database of company names, you may be unable to incorporate it.
- There is an exemption if an existing business (or LLP or other entity on the index) is in the same group as your firm and agrees to use your proposed name. The section on selecting a business name covers this in further detail.
What are the company house rule in UK?
A business must register a large amount of information with Companies House. It is all public knowledge, and the necessity to provide such information is seen as the cost of being given the privilege of corporate identity and limited liability. The information must be supplied to Companies House at the company’s initial registration and throughout its existence.
Below are the company house rule in UK
Upon first registration
When a business is established initially, it must transmit the following documents to Companies House:
- Articles of incorporation (unless these are the Model Articles without amendment, which is unusual)
- Form IN01.
- Complete business name
- Type of business (e.g. private company limited by shares, etc.)
- Location of the registered office (e.g. England and Wales)
- The corporation’s articles may be one of the Model Articles sets, altered Model Articles, or specifically prepared papers.
- Contact information for the corporate secretary (if any). (Details of registration if a corporate secretary is appointed)
- Director information (name, former name, date of birth, nationality, occupation, service address, and usual residential address). If there are any corporate directors, please include their registration information.
- Statement of capital including information on the class, the nominal value, the number of shares allocated, the sum paid up (including any premium), the aggregate issued share capital, and the rights linked to the shares.
- Details about the shares that will be distributed upon allotment, as well as the names of the shareholders
- Names of subscribers are included in the Memorandum of Association.
Changes to the company’s information
If the firm undertakes several tasks, the appropriate form must be submitted to Companies House. Examples include:
- Altering the name of the firm (NM01 plus a copy of the resolution)
- Designate a director (AP01)
- Designate a company secretary (AP03)
- Changes to the director’s information (for example, address) (CH01)
- Director removal (TM01)
- Alter the registered office (AD01)
- Distribute shares (SH01 – includes a statement of capital)
- Mortgage or charge on the company’s real estate (MG01, MG01S in Scotland)
- Alter the accounting reference date (AA01).
Addresses of directors
Directors’ data given to Companies House and published on the company’s register of directors will contain both ‘service address’ and the regular home address from October 1, 2009. In most cases, the service address is the sole one made public at Companies House and in the company’s statutory records. Click here for additional information.
Statement of confirmation
Every year, the corporation must submit a confirmation statement with Companies House. Most businesses do this online (for a charge of £13) or by filling out and signing a paper form CS01 (the price of £40).
Much of the information presented on file at Companies House is stated in the confirmation statement (registered office, directors, shareholders, PSC information, industry classification, etc.). It fulfils two functions: (1) It urges the corporation to supply any updated information; (2) it enables locating the filing at Companies House simpler.
For most purposes, it is going back to the most recent annual return and noting any changes reported since that date is all that is required. From June 30 2016, the confirmation statement superseded the annual return, which performed essentially the same role.
Annual financial statements
Annual accounts are required for all limited firms. Larger corporations must submit comprehensive accounts, including a balance sheet, profit and loss statement, directors’ report, and auditors report. Small and medium-sized businesses may send modified accounts’ with less detail.
Registers of statutes
Aside from the disclosure obligations at Firms House, all companies are required to keep a set of statutory registers, which are public papers that any public member may see. The Firms Act 2006 is changed by Section 94 and Schedule 5 of the Small Business, Enterprise, and Employment Act 2015 to allow private companies.
How much does it cost to register a business name in UK
The cost of Register a business name in UK ranges from £12 and £100, depending on the method used. The easiest and cheapest method to register is online. However, you may also register by submitting a form for a fee.
Can I register a business name without trading?
You certainly can. This is known as establishing a “dormant business,” and it might be beneficial even if you want to continue as a single trader. Registering a business, even if it will not trade, protects you against predators who will take advantage of your goodwill. Nobody other can register a corporation with the same name, protecting your firm’s interests.
- If you intend to reactivate your inactive business, you must:
- Inform HMRC within three months of the company’s start-up.
- Send your accounts to Companies House within nine months after the conclusion of your company’s fiscal year.
- Pay any corporation tax within nine months and one day after the conclusion of your company’s fiscal year.
- Submit a tax return within 12 months after the end of the fiscal year.
Difference between a trading name and business name?
Despite the dangers and possible constraints, many UK businesses want to use a trading name, and there are several potential benefits.
First, employing one or more trade names to conduct many companies under one company may save you time and money on administrative and company secretarial tasks like submitting confirmation statements and yearly accounts. This is because you would only be required to submit this paperwork in the name of the registered firm.
You may also use trade names to distinguish distinct parts of your firm. For example, the company you formed with Companies House may be a web design firm, but you also provide content services and technical SEO. You may then provide these services under various trade names so prospective consumers can tell from your names what services you can provide.
A trade name might also be advantageous if it corresponds to your website domain. This is especially beneficial if your registered company’s website name and social media handles have already been taken. You might get around this by utilizing a trade name that corresponds to your intended brand on your website and social media sites.
One of the biggest downsides of adopting a commercial name is that you always face the danger of someone else registering your name with Companies House for their firm in the future. This might inconvenience your company significantly and even harm your reputation and consumer base.
Second, if you do not do adequate comprehensive searches for both trademarks and business names before deciding on a trading name, you face the danger of facing legal action. Third, if your trade name is close to the name of another local firm, this business may accuse you of ‘passing off’ your business as theirs.
Do I need to register my business name if I am a sole trader?
Sole traders are not required to register a business name with Companies House. This is only required if you are forming a limited corporation or a limited liability partnership (LLP). You must register with HMRC for Self Assessment to work as a sole trader.
Registering for Self Assessment is a simple process that may be completed online in a few minutes. You will need to give the following information to do so:
- Number of National Insurance
- Full name and mailing address
- Personal contact information
- Name and address of your business
Benefits of registering a company name-
The applicant may get the following benefits by pursuing or contemplating the procedure of UK Company Formation:
Ample Resources
An applicant is looking for business registration services, or UK company formation would have many options. Such resources might include government funding, various incentives, technological centres, and start-up innovators who give space to assist the firm in flourishing.
Simple Incorporation Process
In the Uk, starting a company is a cinch. This procedure may usually be completed either offline or online. Offline, the procedure would often take longer. If the applicant chooses the online option of UK business creation, the process will take less than 24 hours.
Access to Finance
One of the world’s most important financial centres is London. As a result, many companies and financial institutions desire to locate or incorporate in the United Kingdom. As a result, the procedure of forming a UK business would provide additional options for the applicant to obtain funds and capital from various financial organizations and banks.
Access to Technology
Aside from funding, the candidate has access to cutting-edge technology and automation. Any applicant pursuing the process of UK business formation may make use of all of these technological advantages to get the finest and make the procedure easy and simple.
No residency requirements
Directors and shareholders of UK-registered firms are not needed to be UK residents or citizens. They may live in their home country while doing business in the UK.
FAQ-
Do I need a trademark to register my business name in UK?
There is no legal obligation for you to trademark your company or business name (logo). In truth, you might have common law rights to your company name even if you don’t legally register it.
Can I reserve my company name?
In order to register a business name UK, you must first establish a company. Incorporation is required whether you want to trade via the business in the future or you want to safeguard the name to prevent other firms from registering it.
Can I register without trading?
You certainly can. This is known as establishing a “dormant business,” and it might be beneficial even if you want to continue as a single trader.
Can I use the company name without trading?
You do not need trading to use the company name. However, if you wish to use a trading name, you must register it with your state or county.
Can I use a company name that already exists?
A business name cannot be the same as that of another registered corporation. Companies House will reject any business formation application or change of company name form that has a company name that is the “same as” or “too similar” to an existing name (the UK Registrar)
Conclusion:
Our article “A Brief Summary To Register A Business Name In UK” guides you with all of the information you need to get started with business name registration. It explains how to come up with the perfect name, check to see whether it’s available, and then register it with the UK Government.
