I’ve Registered My Business – Now What?
Have you gone through the perils of incorporating your business? If the answer is yes, then you need to be advised that you have seen nothing yet. What this means is that once your business has been incorporated, there are a number of things that still need to done and ensured. Here are some of the things that you will need to do after the successful incorporation of your business:
Receiving the Company Formation Documents
Once you have made an application for company registration, it will first need to be approved. Once the application has been approved, your new incorporation will receive a set of company formation documents. The most prominent of these documents are the Certificate of Incorporation, a Memorandum of Articles and Articles of Association. If your company is limited by shares, however, then you will receive Share Certificates as part of the company formation documents. These documents are sent and received by post and email, depending upon the nature of the application that you had made. Regardless of what your mode of application might be, the fact of the matter is these documents are of utmost importance and need to be kept safe. What this means is that there is a need for you to store paper documents safely, preferably at your registered office address. On top of that, it is essential for you to create backups for your digital documents also. It is the responsibility of a company’s directors to keep these documents out of harm’s way and present for inspection when asked by the relevant authorities.
Registering for Tax
Once your corporation has been registered, you are liable to pay the Corporation Tax. The current Corporation Tax in the UK is twenty per cent. What this means is that your corporation will need to pay twenty per cent of its profits to the government, as tax. On top of that, if the earnings of your company exceed the threshold of £83,000 VAT taxable turnover in one year, then you will also need to get the company registered for VAT. With the need to pay taxes comes the requirement for submitting your tax returns to the HMRC. Once the corporate tax has been paid, you will need to submit your company’s annual tax returns, along with the full set of annual financial statements, to the HMRC.
Your Company’s Bank Account
Did you think that you could continue to use you own bank account for the operations of your company, as you did prior to incorporation. If the answer is yes, then you would be better off if you think again! This necessity does not stem from a legal requirement, considering how the law doesn’t mandate you to have a separate account from your company. However, when you consider how a company is a separate, legal entity that needs to declare its own, separate earnings, you realise that you would be left much better off if you have a separate bank account from your business. It is because if you use a singular bank account, then you will need to distinguish your personal money from the company’s money, especially when it is the time to file tax returns. A separate bank account for your company will ensure that you face absolutely no problems when it comes to distinguishing your company’s money from your personal money.
Report the Correct Figures
According to the requirements set by the government, the company figures reported need to present a true and fair view of the conditions that the company is in. It is imperative, therefore, for companies to implement such controls and procedures that ensure not only the recording of the correct figures and numbers but also the correct reporting as well. This is, especially, important for companies when they are filing their tax returns, considering the tax liability will directly depend upon the reported profits. On top of that, it is also recommended for your company to keep all of the necessary documentary records for a minimum period of six years. This will ensure that you are able to pull out any document that you might need over the course of time.
When you talk about incorporating a company, the fact of the matter is that it is an easy job. It is what you do after incorporation that decides where your company will be headed. After all, who wouldn’t wish for their companies to be successful, right?