Company Registration 

Company registration is one of the first and most critical steps in starting your own business. From choosing the right structure to understanding regulatory obligations, the process can be complex and time-consuming. 

If you find yourself in this position, you might be wondering whether you should register as a sole trader, partnership, or limited company. Or perhaps you’re looking to understand your legal obligations from day one, so you can focus on growing your business. 

• What is company registration?

• What are the benefits of company registration?

• What are the different types of business structures?

• When do you need to register a company?

• What is the process for registering a company in the UK?

• How much does it cost to register a company?

• How long does it take to register a company?

• What is the difference between a sole trader and a limited company?

• What are the ongoing compliance requirements for a registered company?

• Can I change my company's name or structure after registration?

• What is Companies House and what role does it play in company registration?

• Can I register a company if I'm not a UK resident?

• What are the implications of not registering my company?

• Can I run multiple businesses under one company?

• Can I register a dormant company?

• What documents do I need to register a company?

• Can you register a company on behalf of someone else?

• Do I need a solicitor to register my company?

• When should I consider hiring a solicitor to register my company?

• What are the benefits of using a solicitor for company registration?

Whatever the circumstances, at Lawhive we provide you with the legal support you need at a fraction of the cost of traditional high-street law firms. What’s more, our streamlined, tech-powered platform makes company registration straightforward and accessible. 

Our network of experienced small business lawyers is on hand to provide personalised advice and handle all aspects of your company registration from choosing the right company structure to filing documents for an affordable fixed fee. 

Contact us today for a free case evaluation and quote for the services of a specialist lawyer to get started on your entrepreneurial journey with confidence and ease. 

What is company registration? 

Registering a company is the legal process of establishing your business as a distinct legal entity. Registration defines the company’s structure, including its legal form, shareholders, directors, and operating rules as outlined in its memorandum and articles of association. 

What are the benefits of company registration?

Limited liability protection 

Registering your company as a limited liability entity separates your personal assets from the company’s liabilities. This means that if the business incurs debts or faces legal action, your personal assets are generally protected. 

Credibility

Being a registered company can build confidence with clients, suppliers, and investors, making it easier to establish trust and secure business opportunities. 

Tax efficiency 

Registered companies may benefit from more favourable tax treatment compared to sole traders, like being able to pay corporation tax on profits and claim tax-deductible expenses. 

Access to funding 

Registered companies can more easily raise capital to expand operations, develop new products, or enter new markets by issuing shares or getting loans from investors or banks. 

Continuity and succession 

Unlike sole proprietorship, registered companies continue to exist even if ownership or management changes. Shares in a company can also be transferred or sold, facilitating smoother transitions in ownership and management. 

What are the different types of business structures? 

Different business structures can affect a company's legal standing, tax obligations, and operational flexibility. Below is an overview of the main types of business structures available: 

When do you need to register a company?

You need to register a company if: 

• You want to establish a separate entity and gain limited liability protection; 

• You plan to operate in partnership with others or anticipate significant growth and investment needs; 

• You’re seeking investment or business loans; 

• You’re hiring employees; 

• Your industry or profession requires a registered company structure; 

• You need to manage tax obligations more efficiently or exceed VAT thresholds; 

• You want to protect your business name and establish a credible brand identity; 

• You need to limit personal liability and separate your personal finances from business liabilities; 

• You want to benefit from the legal protections of a distinct legal entity; 

• You’re transitioning from a sole trader to a more formal business structure;

• You’re adding partners or shareholders and need to formalise ownership and responsibilities. 

At Lawhive, our network of expert small business lawyers can help you with every aspect of company registration. Schedule a free case evaluation today to get started. 

What is the process for registering a company in the UK? 

To register a company in the UK, you should: 

1. Decide on the business structure that best suits your needs;

2. Choose a unique company name with the appropriate legal ending (i.e. ‘Limited’ for private companies, or ‘PLC’ for public companies); 

3. Prepare your companies Memorandum of Association and Articles of Association; 

4. Appoint at least one director and, if applicable, one company secretary; 

5. Register your company’s address; 

6. Submit your application to Companies House either online or by post.

When you register a company, you will receive a Certificate of Incorporation, which includes the company’s registration number, date of incorporation, and the company name. 

After incorporation, you’ll also need to register for various taxes with HMRC such as corporation tax, PAY (if you plan to hire employees), and VAT (if your company’s annual turnover exceeds the VAT threshold). 

How much does it cost to register a company? 

There are various costs involved in registering a company that depends on the method of registration, the type of company being formed, and whether you use additional services. 

Below is a breakdown of the potential costs involved: 

This list is not exhaustive but should give you an idea of the kind of costs you may encounter when registering a company to help you better prepare for the financial aspects of the process. 

How long does it take to register a company? 

Registering your company online through the Companies House Web Incorporation Service is the fastest method. Once the application is submitted and payment is processed, the company is usually incorporated within one business day.

If you choose to register by post, it can take between 8 to 10 days due to the time taken for delivery and processing. 

Companies House also offers same-day registration which is completed on the same day if received by 3pm.

What is the difference between a sole trader and a limited company? 

The two most common business structures in the UK are sole trader and limited company. 

As a sole trader, you and your business are legally considered the same, which means you are personally responsible for all debts and obligations of the business.  You also have complete control over all business decisions and operations

A limited company, however, is legally distinct from its owners. It can own assets, incur liabilities, and enter contracts in its own name. Further, it is managed by its directors and shareholders influence decisions through voting rights.

What are the ongoing compliance requirements for a registered company?

Once a company is registered, there are several ongoing compliance requirements to ensure it remains in good standing and follows legal and regulatory obligations. Key responsibilities for a registered company in the UK include: 

• Annual confirmation statement 

• Annual accounts 

• Corporation Tax return 

• VAT returns (if registered) 

• Payroll and PAYE responsibilities 

• Annual General Meeting (AGM) and resolutions

• Business Insurance 

At Lawhive, our network of small business lawyers is on hand to help you manage compliance requirements efficiently. Schedule a free case evaluation to learn more. 

Can I change my company’s name or structure after registration?

You can change your company’s name or structure after registration either through a special resolution or by a directors’ decision. 

It is also possible to change a company’s legal structure by incorporating the new entity, transferring business assets, liabilities, and operations to the new entity, and formally closing the old entity. 

What is Companies House and what role does it play in company registration? 

Companies House is the UK’s official registrar of companies. It is responsible for incorporating new companies and issuing Certificates of Incorporation, as well as processing applications for changing company names, structures, and key details. 

Can I register a company if I’m not a UK resident? 

Non-UK residents can register a company in the UK, provided they meet certain criteria and comply with legal requirements. That being said, registering a company in the UK doesn’t automatically grant you the right to live or work in the UK. 

If you plan to move to the UK to run your business, you will need to get the appropriate visa, such as the Innovator Founder Visa. You also must have a UK-registered office address for official correspondence.

What are the implications of not registering my company? 

If you operate a business without registering as a company, you are classified as a sole trader by default. This means you won’t benefit from the protections and advantages of limited liability offered by a registered company. 

You may also find it difficult to enter into legally binding contracts with suppliers, customers, or partners. Or, depending on your industry, not registering your business could mean failing to meet specific regulatory requirements, such as licensing and permits, which can result in fines, penalties, or being shut down. 

Can I run multiple businesses under one company? 

There are different options available for running multiple businesses under one company using: 

• Different trading names under one legal entity

• A holding company that owns multiple subsidiary companies 

• Multiple business units within a single company 

At Lawhive, our network of small business lawyers can help you choose and implement the best structure for running multiple businesses. Contact us today for expert advice and support. 

Can I register a dormant company?

You can register a dormant company (one that is legally incorporated but has no significant accounting transitions during a financial period) in the UK. 

You do this in the same way as registering any other company. However, once registered, you must tell HMRC that the company is dormant and make sure no significant accounting transactions occur that would classify the company as active. 

What documents do I need to register a company?

The key documents you need to register a company include: 

• Memorandum of Association 

• Articles of Association

• Form IN01

• Valid ID 

• Proof of address 

• Statement of Capital and Initial Shareholdings

• Statement of Compliance 

Can you register a company on behalf of someone else?

You can register a company on behalf of someone else if you have written consent from the person or entity you are registering the company form. 

This is a common practice where professionals, such as solicitors, handle the company registration for their clients. 

Do I need a solicitor to register my company? 

You don’t legally need a solicitor to register a company in the UK. Many entrepreneurs successfully register their companies themselves using the Companies House online service. 

However, while you can go it alone, there are significant benefits to engaging a solicitor, especially if you want to be sure everything is done correctly from the outset. 

The main benefit of DIY company registration is that you save on solicitor fees. However, the company registration process involves lots of different steps and, without a solicitor, you might miss out on important legal advice that could impact your business. 

When should I consider hiring a solicitor to register my company?

You might consider hiring a small business solicitor to register your company if: 

• Your business has a complex structure, involving multiple directors or shareholders; 

• You’re not familiar with the legal and regulatory requirements of running a business in the UK; 

• Your business involves specific legal considerations, such as intellectual property protection or sector-specific regulations; 

• You plan to grow and scale your business quickly. 

What are the benefits of using a solicitor for company registration?

Registering a company involves several legal, administrative, and procedural steps. Using a solicitor can significantly simplify this process and ensure you comply with all legal requirements. 

A solicitor can help you: 

1. Choose the most suitable business structure; 

2. Ensure your company complies with all relevant legal requirements; 

3. Perform trademark searches for your chosen company name;

4. Draft the Memorandum of Association and Articles of Association;

5. Draft shareholder agreements or service agreements; 

6. Help prepare and file Form IN01 and any other required forms; 

7. Help with registering your company for corporation tax;

8. Assist with registering for VAT and setting up PAYE. 

Why choose Lawhive for your company registration?

Registering a company is a fundamental step in launching your business which involves choosing the right structure and ensuring compliance from the get-go. This process, while important, can be daunting and time-consuming. 

At Lawhive, we simplify company registration, making it straightforward, efficient, and accessible. 

When you partner with us, you gain access to a network of experienced small business lawyers well-versed in company registration, ready to provide tailored advice and handle every aspect of the registration process for transparent, affordable, fixed fees. What’s more, through our online platform, company registration is quick and hassle-free, saving you time and reducing costs compared to traditional high-street firms. 

Starting your business should be an exciting journey, not a legal headache. Contact us today to schedule a free case evaluation and receive a no-obligation quote for the services of a specialist lawyer.