Introduction
Business registration is a process that is mandatory for every organization. This registration exists so as to give information to the public about the individual(s) in charge of the operations of a company. It is a process required by the laws governing the United Kingdom, and various countries, for every company that exists and operates within its borders.
Registering a business ensures that no other person can operate a company under the same name and structure. For a company that wishes to retain ownership of a business name and structure, the business registration process should be carried out as soon as possible. This is necessary in order to avoid future conflicts, as the longevity of a business does not legitimize its right to the name and structure it operates with.
Reasons for Business Registration
Registering your business most definitely comes with a lot of added benefits. It is proof that you are a certified entrepreneur and not just another small business owner. The ease of obtaining a Business loan is one of the primary reasons for business registration. To apply for a business loan, lenders often require the borrower to have a legally registered business entity. This is because a registered business is easier to identify and holds legal accountability for any debts incurred. Lenders need assurance that they can legally pursue repayment if the business defaults on the loan. Moreover, a registered business may have assets or collateral that can be used to secure the loan. While this is one of the reasons for registering a business, there are other benefits that come with registering your company. Some of these are explained below:
- Business Exists as A Separate Legal Entity: In order for a business to be recognized as a separate legal entity, a registration must have occurred. This makes it possible for calculated business risks to be taken without the exposure of private assets to some legal and financial risk.
- Equity Financing: Attracting investors for a business becomes considerably easier when it is registered and raising money proves to be less difficult. This is as a result of the registered status of the business making it able to source for funding by equity financing. Equity financing involves selling company shares to interested people and prospective shareholders and this isn’t possible for an unregistered business. This form of financing does not require repayment and it also does not incur interest.
- Business Credibility and Reputation: Registering a business connotes that the company has permanence and considers responsible management to be a priority. Therefore, the organization gains more credibility and prestige as clients and partners gain more confidence in the business.
Ways to Register A Company
There several ways to register a company and they include:
- Registering the business structure and operating with the registered name: This involves registering the business structure on a state level. It ensures that has legal rights to its name and can carry out business operations with it. Accomplishing this requires registering the organization’s structure as a limited liability company (LLC), a corporation, a non-profit, or a limited partnership, etc. If you need more background on how to do an LLC formation, you may want to look on websites such as growthboost.co, for help in this area.
- Filing for doing business as (DOA) name for the business: This method is common with sole proprietors who wish to operate a business with a name other than their own name. It allows the business owner to use a name different from that which was used when the business structure was determined.
- Trademarking the business name: This is majorly for organizations who wish to protect their intellectual property on a state or national level. However, certain qualification requirements must be met for before a company can trademark its name.
Steps for Company Registration in the UK
Several countries have similar and dissimilar procedures for registering a company but this section focuses on how to do so in the UK. The cheapest way to register a business in the UK is via the Companies House at an amount payable to the Companies House. The cost ranges from 20 to 30 Euros depending on how quick you want the process to be.
- Determining Company Structure: Before going any further you have to decide on the business structure you want to operate with. A company’s structure has legal consequences that affect the cost of tax and national insurance, records and accounts mandated to keep, financial liability in event of debt, financing methods, and management decisions.
- Choosing a business name: Registering a business requires choosing a name and you may decide to operate under your name and also choose to do without using limited, Ltd or plc. Business names must be unique as they are not allowed to be too similar to names already in the register. You can find out if your company name is available online or by placing a call through to the Companies House.
- Incorporating: Before incorporating a business, certain requirements must be met and they include:
- Choosing a business name
- Verifying that none of the proposed business directors have been disqualified from acting in that capacity. This can be checked online at companieshouse.co.uk
- Filing out all the necessary forms to comply with national and local laws. For instance, if your business will require having a database of customers, employees, and/or business contacts, you will be required to comply with GDPR, wherein the help of gdpr services can be employed. Similarly, if your business will involve operating in an environment that requires pollution control, you will need to comply with environmental regulations and secure the necessary permits from the relevant authorities.
Registering your business in the UK is not rocket science at all. Customers want to know that you are a serious business owner. Obtaining the required documents for your business as a Limited Liability Company (LLC) is surely the right way to pull in the good clients.
This step in business creation comes right after coming up with a viable business plan. This ensures the future of your business as well as making moves to register it. Registering your business can improve the stand of your company in whatever sector you’re in.
You’re able to advertise your company under the registered name. Some unregistered small businesses sometimes share names with other small businesses as well. In the eyes of the law, the first business to register under that name has legal right to retain it. This is why it is essential to take this bold step for the future of your business. A legal business entity holds several advantages like an increase in your credibility. An unregistered business is guaranteed to be perceived as non credible while a registered one will not.
Conclusion
Registering your business is as important as starting it to begin with. A registered business can draw in more eligible clients. A registered business shows your clients that you have fulfilled all the requirements expected of you. Registering your business in UK is definitely a viable step towards a successful business career.
