What to do after you register your company: six essential tips

You researched how to register your company, submitted the paperwork, and now your new company is up and running. But what’s next? Read on to discover the six essential steps you need to take after registering your limited company.

Key takeaways

Here’s a summary of the main things you need to do after setting up a limited company:

• Open a business bank account

• Register with HMRC

• Set up your accounting records

• Find an accountant

• Take out business insurance

• Ensure you meet your obligations

Step 1: Open a business bank account

If you run a limited company, you need a separate business bank account for your company’s revenue and outgoings.

That’s no bad thing, though. There are a number of reasons why having a business bank account can be a better option than using your personal account for business purposes. 

One is that a business bank account helps you to keep track of your company accounts. Another is that it can give you access to useful linked products, such as a business savings account or a business overdraft.

When choosing a business bank account, consider the following:

• What account fees do you have to pay? Some accounts charge for certain types of transactions

• What extra features come with the account? Will you get an overdraft or a business credit card, for instance?

• How can you manage the account? Many business bank accounts are online only. How would this affect you?

• How much can you transfer? Is the transaction limit high enough to meet your needs? 

• Do you receive in-credit interest on your account balance?

• What business support does the provider offer? Some accounts give you access to accounting platforms.

To open a business bank account, you must provide your company registration number, personal ID details, and your business and home addresses. 

Step 2: Register with HMRC

You have three months to register your limited company with HMRC after you start trading. 

From then on, you must file:

• Annual accounts with Companies House 

• A yearly company tax return with HMRC

The easiest way to register for Corporation Tax is via the HMRC website.

To do this, you need your company’s 10-digit Unique Taxpayer Reference (UTR) number. HMRC sends this to your registered office address in the first three weeks after you register your company.

If your business turnover exceeds the Value Added Tax (VAT) threshold – £90,000 at the time of writing – you must also register to pay VAT.

Again, you can do this via the HMRC website. Once that’s done, you have to send VAT returns to HMRC at least every three months.

If you have employees, you also need to make monthly PAYE and National Insurance contributions. Read more: Managing VAT for small businesses

You can call HMRC on 0300 200 3310 if your UTR number fails to arrive within three weeks of registering your company. 

Step 3: Set up your accounting records

Keeping accurate financial records is crucial to running a successful business, not least because you must submit annual accounts to Companies House every year. This is alongside a confirmation statement containing business details, such as the company’s name and address.

Once a year, you must also send a company tax return to HMRC.

As a result, it’s important to implement a robust bookkeeping system that lets you track your company’s income, expenses, assets and liabilities.

Your accounting records need to include:

• Money spent and received

• Assets owned by the business

• Debts owed to or by the company

• Stock owned by the company

• Goods and services you have bought and sold

As a limited company, your business must also have up-to-date registers of its directors, shareholders and any others with significant control over the company. 

Step 4: Find an accountant

There’s no legal obligation for small businesses to have an accountant – as long as they fulfil their statutory requirements with HMRC and Companies House.

However, using an accountant helps small business owners avoid making mistakes or paying more tax than they should.

Having an accountant also frees up time for you to concentrate on running your business and meeting your goals. 

Ask around for recommendations for good local accountants. Or do a quick search online. 

Once you have some likely candidates set up a free initial consultation with one or more of them to find out more about the services they offer and how much they charge. 

Step 5: Take out business insurance

The business insurance you need depends on the type of company you operate. For example, you only need employers’ liability insurance if you have employees. Decide which insurance you might need if things go wrong, and ensure you purchase adequate cover. 

Common types of business insurance include:

• Public liability insurance

• Professional indemnity insurance

• Employers’ liability insurance

• Business contents insurance

• Business contents insurance

• Business interruption insurance

Step 6: Ensure you are meeting your obligations

If your business has – or will have – employees, another important step is to set up a payroll system and register as an employer with HMRC. 

You can do this online via the HMRC website. 

It’s also vital to ensure you comply with UK employment laws. The requirements involved include:

• Providing written employment contracts

• Paying at least the minimum wage

• Maintaining acceptable health and safety standards

• Setting up a workplace pension scheme for eligible employees

As a limited company, other sensible steps to take to ensure compliance and avoid problems further down the line include:

• Setting out your terms and conditions (T&Cs) – and making sure your customers or clients can easily find them

• Writing a Shareholders’ Agreement if your company has multiple shareholders

• Displaying your company name, number, address, place of registration and VAT number if you have one on your website, as well as on emails and order forms

What happens after you register a company?

Once you successfully register your business, Companies House will issue you a Certificate of Incorporation. This document, which verifies that you have completed the registration process, arrives by email or post, depending on whether you set up your company through a formation agent or directly with Companies House.

Once you have this certificate, you need to take steps to ensure your business meets the necessary regulations and gets off to a great start.