How do you register a business name in the UK?
Octa Accountants
7 Min Read
Nov 12, 2024
Company Incorporation
Starting a business can be a nerve wrecking task coupled with anxiety of the newness and excitement of the experience. No matter how rewarding or fruitful the journey may be in the future, the first step is always the hardest. While it is true that all businesses initially begin with an idea or even a plan but before starting operations there is one more important thing that cannot be missed and that happens to be registering your business name to make it official.
If you are based in the UK then there is a whole process that needs to be followed and none of the steps can be missed. Whether you’re looking to set up a sole proprietorship, a limited company, or even just need a trading name this blog will tell you everything you need to know about registering your business covering all the essential stages of the process.
Keep reading for an easy and simple step by step guide to get your business started!
Step 1: Choose your business name
Start off by deciding a name for your business which might appear to be an easy task but requires a lot of careful planning and meticulous brainstorming. Your name is how people will know your business, therefore it should be unique and relevant. But that’s not all; you’ll also have to obey certain guidelines.
You cannot select a name that is too similar to an existing company’s name. You also cannot use some terms without authorization. The key to choosing a name is keeping it short, simple and relevant. As longer names not only become confusing but also become harder to remember most of the time.
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Step 2: Check Availability
Another important point when choosing a name for your business is to consider the availability of the chosen name. You do not want a name that has already been taken by another company. It will also prevent you from any legal troubles that may arise later down the road. The best way to do this is to visit the official UK government website and go to the name availability checker, type in your chosen name and the site will show you if it’s available or if someone else is already using it.
If the name is free, you’re good to go but if not, you’ll need to try other options. You also need to ensure that the name or something similar to it is not already trademarked. Also, if you are planning to build a website now is the right time to check if the domain name is available too. Once you are done then it’s time to register the name.
Step 3: Decide your business structure
In the UK the process of registering your business name depends on the structure of your business. If you’re a sole trader, you don’t need to register your business name with Companies House which is the executive agency of the British Government that maintains the register of companies, employs the company registrars and is responsible for incorporating all forms of companies in the United Kingdom. You can simply use your own name or a trading name.
For a partnership, you and your partners will work under a collective name. You don’t need to register with Companies House, but you must register for tax purposes. For a limited company, you’ll have to register with Companies House. This structure has more requirements, including filing annual accounts and adhering to stricter regulations. But it also offers more legal protection, as it separates your personal assets from your business assets.
Step 4: Register your business name
This is officially the main part of the process and it has different methods based on your chosen business structure. If you’re a sole trader you will simply operate under your own name or a chosen trading name but you still need to register with HMRC for tax purposes and set up a business bank account if you’re using a trading name.
Like sole traders, partnerships don’t need to register a business name with Companies House but you’ll need to register with HMRC for tax purposes. However, if you’re forming a limited company, you’ll need to register your business with Companies House by going to their website and filling out the online registration form. Provide details like the name, address, and names of directors and pay the registration fee. Online applications typically take 24 hours to process. When your business is registered, you will get a Certificate of Incorporation. This serves as proof that your firm exists lawfully.
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Register for taxes
The next step once you’ve registered your business name is to register for taxes. This is a vital step since all businesses are required to declare income and pay taxes. Sole traders and partnerships must register for Self Assessment with HMRC which allows them to report their income and pay taxes accordingly. For limited companies, tax registration is more detailed.
Set up a business bank account
It’s not mandatory to have a business bank account, but it’s highly recommended. Having separate accounts makes accounting easier and keeps your finances organized.
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Register for trademarks
If you want extra protection for your business name, consider trademarking it. A trademark can protect your brand, logo, or name from being used by someone else.
Tips for marketing:
Once you are done with all the aforementioned steps for registering your business the next logical step is to start marketing your business. This is a broad spectrum and can become quite overwhelming which is why we have shared three best tips for marketing your business below:
- Create a Website: Your website will serve as your business’s internet presence. Choosing a relevant domain name and ensuring a user friendly interface is essential to increase in potential clients and customers. For added reach, optimize your website for search engines by using relevant keywords. A strong online presence can significantly boost your credibility and attract new customers.
- Set Up Social Media Accounts: Social media is an excellent way to connect with potential customers. Social media platforms like Facebook, Instagram, and LinkedIn are excellent tools for building brand awareness. Furthermore social media provides a valuable, personal connection with customers and can help build a loyal following in a short timespan.
- Network Locally: Local networking can be a powerful way to gain visibility and credibility in your community. The personal connections not only generate referrals but can also lead to meaningful partnerships and support from your local network.
Final Thoughts
Registering a business name in the UK may seem complicated, but it’s manageable if you break it down into steps. Taking the time to register your business name properly gives you a solid foundation. Once you have got this out of the way you can operate under your new business name.
In order to succeed you need to strategize, plan and organize. Seek guidance and advice from experienced CAs and mentors. Practice test questions to become acquainted with the format. You may also find networking helpful so connect with industry professionals to get insights and opportunities.
The financial rewards and personal growth that come with the designation make it worth the commitment. Each step, whether it’s enrolling in a recognized accounting program, passing exams, or completing practical training hours, gets you closer to joining a professional network of finance specialists. It’s a journey that entails a commitment to learning, passing challenging exams, and obtaining practical experience.
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