The UK offers many opportunities for both local and foreign investors. Access to many markets and a favourable economic status draw many to invest. It is a very competitive market offering menu opportunities. Many may be mistaken in thinking that it is easy to set up a business simply because of the available menu opportunities.
Startups need to carefully plan out everything when they’re considering company formation, including picking the company name and registration. These are not things to take lightly since many people know how to check if a company is legit in the UK according to The Hoxton Mix. Customers want to buy from trustworthy businesses. So starting a business in an area with high expertise requires having a name that distinguishes you from the competition. Let’s check a detailed discussion on how to pick a business name and register it.
Find a location
The first step to registering a business is to find an address. For a business to be credible, it needs a physical address. All companies operating in the UK are required to list their physical address.
Anyone who wants to know how to check if a firm is legit in the UK will start by looking online. Businesses that do not have physical locations may be flagged as being suspicious. The problem many companies face is the cost of having an office. Most office spaces are in busy areas and then to be very expensive. Alternatively, you could opt for virtual addresses.
These provide an actual business address that you can use for registration and correspondence. While the business is listed using the virtual address, you can continue operating remotely. Having a virtual office offers many benefits such as:
- Provides professionalism
- Builds brand visibility
- Boosts customer trust
- Reduces costs
Pick a company name
The next step is to select the name of a business. This is what you will use during registration. It may be tricky to pick a name so you need to pay special attention. That is because it has a huge effect on the first impression from customers. Here is a checklist of what to do when picking a business name.
- Is it unique?
- Is it available?
- Does it represent the brand?
- Is it catchy?
- Does it meet local requirements?
Check companies house
Companies House maintains a list of all registered companies in the UK. The directory has business information including:
- Name
- Address
- Directors
- Stakeholders
This provides the public with updated information. So you have to check whether the name in mind already exists within the Company House. The website has a free tool for checking whether a name is available. Simply visit the website and search for the name. It brings results within a few seconds. If a name already exists then it is time to go back to the drawing board.
The name should be in line with what you offer. Once people see it they should be able to identify with your brand. The name needs to be part of the domain. It creates emphasis.
Registration
A business cannot operate in the UK without registering with the right regulatory boards. There are two main government organizations where you have to register, the Companies House and HMRC.
Companies House
The easiest way to check if a company is legit in the United Kingdom is to check on Companies House. This is a government agency that registers all businesses. They may also close down any company that fails to meet regulations.
It usually requires various documents before registering a business. Some documents that you may have to submit include:
- Certificate of incorporation with business name and registration number
- Personal information including name and contact details
- Government Gateway ID
The Companies House may require additional information depending on the niche. To set up an unlimited company businesses have to register by mail. Another additional requirement is to include PAYE if you will provide employment. Registration can be done online. It costs about £15 to £50 depending on the type of business.
HMRC
This government body is responsible for tax payments and customs. According to UK law, every business should register with HMRC within 3 months of starting the taxation period and obtain a UK VAT number. It is the same for any business that starts operating and meets the tax requirements.
Registration is available online. To open an account you need a Government Gateway ID. It is the same one you could use with the Companies House.
Look at compliance rules
Even as you register, keep the regulations in mind. Failure to comply with the rules of the UK government may result in fines. The main reason businesses fail compliance is through customer data breaches. Over the years the rules have become stiffer with companies such as Equifax being charged more than £16 million for data breaches. Make sure to apply the right security measures. It also provides more customer trust.
Acquire insurance
Insuring a business is a necessity that many may overlook. While it may not be a requirement by regulatory boards, it offers cover, especially for startups. Those who fail to use business insurance are most likely to fail or close within the first year.
Success will greatly rely on the insurance company of your choice. There are no guarantees so it is better to take precautions. Should anything go wrong, you will receive financial help which may help your business survive. The type of insurance will depend on your business model and size.
Final thoughts
When done properly, registering a business can be a straightforward task. It all starts with having a company name. This is a representation of what you do. It should always align with a brand image and resonate with customers. Make sure it remains unique.
Once you have a name, proceed to register with the Companies House. It is necessary to have a physical address. If you can’t find one, then a virtual address is a great option. By following the regulations your business will appear whenever anyone searches for how to check if a company is legit in the UK. Try to get insurance as it protects you in case of unexpected events.