IN THIS LESSON

There are 3 Legal bodies a business needs to register with, depending on the structure of the business:

  1. Registering as a Sole Trader with HMRC:

  • Visit HMRC's website (www.gov.uk) and create a Government Gateway account

  • Required information:

    • Full legal name and date of birth

    • UK residential address

    • National Insurance number

    • Phone number and email

    • Nature of your business

    • Start date of self-employment

  • After registration, you'll receive:

    1. Unique Taxpayer Reference (UTR)

    2. Government Gateway ID

    3. Activation code by post (usually within 10 working days).

    2. Registering a Limited Company with Companies House:

  • Visit Companies House website or use an approved formation agent

  • Required information:

    • Company name (must be unique)

    • Registered office address (must be in the UK)

    • At least one director's details:

      • Full name, date of birth

      • Residential address

      • Nationality

      • Occupation

    • Shareholder information

    • Share capital details (how many shares, their value)

    • Standard Industrial Classification (SIC) code

    • Statement of compliance

  • Cost: £12 for online registration (takes 24 hours)

  • After registration, you'll receive:

    • Certificate of Incorporation

    • Company Registration Number (CRN)

    • Articles of Association

    3. VAT Registration: This is required when:

    • Your turnover exceeds £85,000 in any 12-month period

    • You expect to exceed this threshold in the next 30 days

  • Voluntary registration possible if turnover is below threshold

  • Registration process:

    • Create VAT online account through Government Gateway

    • Provide business details:

      • Bank account information

      • Business activity

      • Previous turnover

      • Estimated future turnover

    • Choose VAT scheme (Standard, Flat Rate, etc.)

  • After registration:

    • Receive VAT number

    • Must charge VAT on goods/services

    • Submit quarterly VAT returns

    • Keep detailed VAT records

Important Additional Points:

  • Must register for Self Assessment within 3 months of starting business

  • Need separate registration with HMRC for PAYE if hiring employees

  • Consider registering with Information Commissioner's Office (ICO) if handling customer data

  • Local authority registration may be required for certain business types (e.g., food businesses)

  • Some industries require additional licenses or permits