How to register your business with the authorities

It’s time to make your business official!

Congratulations! You've done the groundwork, chosen your business structure, and now it's time to make it official. Registering your business with the right authorities might sound intimidating, but it's actually a straightforward process. This step is essential – it makes you a legitimate business in the eyes of the law, builds trust with your customers, and allows you to operate legally.

The registration path you take depends entirely on the business structure you've already decided on. We'll cover the two most common paths for new businesses: Sole Trader and Limited Company.

How to Register as a Sole Trader

If you've decided to be a sole trader, you and the business are legally the same thing. The registration process is simply about telling HM Revenue & Customs (HMRC) that you are self-employed and will need to pay tax through Self Assessment.

Here’s how you get it done:

1. Go to the GOV.UK website: The official government site is the only place you should use to register. Search for 'register for Self Assessment'.
2. Fill in the form: You'll need some basic information to hand, including your National Insurance number, and details about your business like its name, type, and start date.
3. Submit and wait for your UTR: Once you've registered, HMRC will post you a letter containing your 10-digit Unique Taxpayer Reference (UTR). Keep this number somewhere very safe! You'll need it to file your tax return.

Top Tip: You must register with HMRC by 5th October in your business's second tax year. For example, if you start trading in July 2024 (which is in the 2024/25 tax year), you need to register by 5th October 2025. To avoid any stress or potential fines, it's best to do it as soon as you start trading.

How to Register as a Limited Company

Setting up a limited company is a bit more formal because you're creating a completely separate legal entity for your business. This means you have a two-part registration process: first with Companies House, and then with HMRC.

Step 1: Register with Companies House (Incorporation)

This is the process of officially forming your company and getting it on the public register.

• What you'll need: You'll need to provide a unique company name that hasn't been taken, a UK address for the company, and the details for at least one director and one shareholder (this can be the same person).
• Choose a SIC code: You'll also need to choose a Standard Industrial Classification (SIC) code, which simply describes what your business does. You can find a list of these on the GOV.UK website.
• Register online: The easiest way is through the GOV.UK website. There's a small fee (usually around £12), and it can be approved in as little as 24 hours.

Once approved, you'll receive a Certificate of Incorporation and a Company Registration Number (CRN). Your company now officially exists!

Step 2: Register for Corporation Tax with HMRC

As soon as your company is incorporated, you must register it with HMRC for Corporation Tax. Don't miss this part!

• When to register: You must do this within three months of starting any business activity. This could be buying, selling, advertising, or employing someone.
• How to register: You'll need your company's CRN and the date you started business activity. You can register online using your business's Government Gateway account.
• What you'll get: HMRC will then send you a Unique Taxpayer Reference (UTR) for your company. Again, keep this number safe as you'll need it for all your company tax affairs.

You're Officially in Business!

Getting registered is a huge step forward and a real milestone. With your UTR and/or CRN in hand, you are ready to take on the next exciting steps, like opening a business bank account and getting your finances in order.