Whether you’re a freelancer, consultant or other self-employed professional, formally registering your business with Companies House can deliver worthwhile benefits. Here we outline everything you need to know about the process.
Do I Have To Register My Business With Companies House?
You are not legally required to register your business if you are a sole trader or ordinary partnership. However, there are compelling reasons to consider registration explained in the next section.
If you operate your business through a limited company, you must register the company with Companies House. Failure to do so is against the law.
Key Reasons To Register Your Business
Here are the main advantages of getting your professional business formally registered:
- Credibility – Official registration adds legitimacy in the eyes of customers and partners. This can be invaluable when pitching for work.
- Funding Access – Evidence that you are an established business makes securing finance much easier with most lenders and investors.
- Tax Relief – You may be eligible for more tax relief as a registered company. Many allowable business expenses are claimable.
- Limited Liability – Registering as a limited company gives protection if legal issues or compensation claims arise later on.
What Are My Registration Options?
You have three main routes to get your business formally registered:
Sole Trader
This is the simplest and cheapest option best suited to freelancers and contractors. You register personally using your own name.
Partnership
Ideal if collaborating with others. You personally register along with named partners and share liability.
Limited Company
Offers more credibility but involves the greatest commitment. You form a separate legal entity that registers. This limits financial liability with proper setup.
Step-By-Step Guide To Registration
Follow this process to get your preferred business structure fully registered:
1. Choose a business name
Brainstorm names that describe your professional services well and check availability.
2. Select the right business structure
Sole trader, partnership or limited company? See earlier section for guidance.
3. Formally register
Use Companies House online service for partnerships and limited companies. For sole traders, register with HMRC.
4. Comply with ongoing legal obligations
Follow rules on accounts, tax returns and other mandatory filings to avoid fines down the line.
What Are The Benefits Of Paying A Company To Register For Me?
While it is possible to self-register, using a specialist company registrar service offers compelling advantages:
Convenience – They handle all documentation and submissions for you. Much easier than tackling unfamiliar government sites solo.
Compliance – Taking this DIY approach risks costly penalties if you miss a filing deadline or submit inaccurate records. Their expertise prevents this.
Business Bank Accounts – Many registrars have partnerships with banks to help you effortlessly open a business account once registered. This facilitates separating finances.
On balance, the modest one-off investment is well worth it for the simplicity, compliance assurance and business banking bonuses secured.
What Do I Need To Do If I Register Myself?
If self-registering your professional business with Companies House, make sure you:
- Meticulously follow all instructions when submitting details to avoid rejections.
- Carefully read and understand all legal obligations concerning ongoing accounts, confirmation statements and corporation tax.
- Maintain extremely organised records from the outset for streamlined compliance later on.
- Seek specialist tax advice to maximise write-offs and understand liabilities.
Be prepared to invest substantial time learning unfamiliar terminology and processes if not using a company registrar to handle for you.
How Much Does It Cost To Register A Business With Companies House?
When self-registering, government fees for the various options are:
- Sole Trader – No registration fee but you need to register for self-assessment with HMRC.
- Partnership – £40 to register plus £13 for each partner named.
- Limited Company – £12 registration fee to form the company plus £13 to file annual accounts and £13 for the annual confirmation statement.
So while DIY registration seems cheap, investing in an expert registrar service from around £100 offers exceptional value when factoring in the administrative hassle and compliance risks avoided. Their expertise can also help to maximise any potential tax relief benefits.
Professional Talk:
So, what do you think? Did you register yourself, have your accountant do it, or go through a specialist company registrar? Do you think it’s worth letting a professional register your business, or do you prefer the control of a DIY registration? Let us know in the comments below and, until next time, make sure it’s Professional Saver.
