Unlocking Success: Your Comprehensive Guide to DIY UK Company Registration with Coddan CPM

Over the years, we have been approached by clients who have tried to DIY their company registration process either directly through the Companies House (UK Registrar of Companies) or through a friend of a friend who’s “done it before” and “knows it all”.

And honestly, how difficult can it be? After all, there’s only one government application form for registration of a limited company in the UK – form IN01 – that needs to completed and filed with the Registrar of Companies. This can be done by post by sending an original form with a cheque for a registration fee or via Companies House’s Web Incorporation portal. So it shouldn’t be too difficult, should it?

In reality, in our 19 years of operations, we have encountered all sort of mistakes people do with their applications to register a limited company in the UK and helped them to turn rejected application forms into successfully completed registrations that launched their dream business ideas into the big world.

Taking into account our past experiences, we have decided to sum up the most common mistakes people do when trying to tackle registration of their new business in the UK and provide you with some practical tips.

Mistake 1: Choosing the Wrong Business Structure

Lack of Understanding Between Different Business Structures: When deciding on starting your new business, it’s important to thoroughly research and comprehend the distinctions between the different legal forms available out there – a sole trader, a partnership, and a limited company - to determine which would best suit your business needs. It’s also important to consider other significant factors that may influence your decision on which route to take. Among many, the most prominent would be personal liability, taxation, and ownership structure.

Ignoring UK-Specific Regulations: For any budding entrepreneur, especially those planning to set up business in the UK from overseas, it’s crucial to recognise that UK business structure rules may differ from other countries.

Here at Coddan, we can provide you with expert guidance, ensuring that whatever business structure you’ll chose for your new business enterprise, you will always comply with UK-specific regulations in relation to the company registration and ongoing annual filing requirements and navigate the process seamlessly.

Incorrect Company Name Registration

Failure to Perform a Comprehensive Name Search: Since coming in force, Companies Act 2006, has prohibited the use of the similar looking or similar sounding names for company registration. If, in the past, a company name ABC LIMITED, ABC COMPANY LIMITED, ABC HOLDING LIMITED or even ABC HOLDINGS LIMITED would all have been considered individual and unique names, since Companies Act 2006, these would all be treated as the “same” or “similar to” and would be declined for registration.

That’s why it’s so important to research and check your proposed company name to make sure it’s available and will be approved for registration. Coddan offers name search services, helping you ensure your chosen business name is unique and not already in use. We will also advise if your proposed company name contains any sensitive or restricted words that would require supporting information or additional approval from any regulatory authority before it’s approved for registration.

Using our free company name checking tool, will help you to streamline company registration process, avoid legal issues, and ensures your business identity remains distinct.

Neglecting Trademark Considerations: Checking your proposed company name for its availability though our free company name checking tool is a good start, however, even after you have confirmed your name doesn’t have existing match on the Companies House records, it will not guarantee that your proposed company name is not an existing trademark and the last thing you want, once you have had your company registered and all the business stationery designed and printed to have a letter from some large IPO legal firm notifying you of the trademark infringement and your company name changed by the decision of the Company Names Tribunal.

Having vast business experience, of over 19 years, in the company formations procedures and formalities, Coddan CPM can guide you through trademark considerations, ensuring your chosen name doesn’t infringe on existing trademarks. Protecting your brand identity is crucial for long-term success.

Errors in Documentation:

Inaccurate or Incomplete Information in Company Registration Forms: To register a Limited Company in the UK, there’s only one Company Registration Application form that needs to be submitted to the Companies House (Registrar of Companies), and that’s Form IN01. Although the form is quite straight forward, it contains the staggering 55 pages, which is quite intimidating on its own and it’s quite easy, for a person with no, or very little, previous experience to get some of it wrong.

Ticking the wrong box, forgetting to complete some important information section or attach your company’s Memorandum of Association to the Company Registration application form will cause unnecessary delays with your new company registration, and as the result, will delay the launch of your business.

Our meticulous approach to documentation ensures accurate and complete information. Our team can guide you through the process, preventing delays and complications.

Choosing the Wrong Incorporation Documents:

We provide tailored solutions, helping you choose and submit the correct incorporation documents that are right for your business structure. Our expertise ensures a smooth registration process for your UK Limited Company is completed from the first attempt and without undue delays.

Overlooking Tax and Regulatory Requirements:

Missing VAT Registration: Understanding UK VAT regulations, registration threshold, as well as quarterly filing and reporting requirements is essential for business planning to sell their goods in the UK markets or offering their services to UK based clientele.

Offering a full range of tax registration services, Coddan’s team of highly trained professionals will be happy to assist you in understanding the VAT threshold and guide you through the VAT and EORI registration processes. Our expertise ensures you don’t miss critical tax obligations and avoiding late filing penalties.

Ignoring Industry-Specific Regulations: Coddan’s vast industry knowledge will help you navigate specific regulations and licensing requirements, ensuring your business operates within legal boundaries.

Ongoing Compliance Oversight:

Forgetting to File Annual Accounts or Confirmation Statements or Missing Tax Deadlines: To remain complaint with the current Companies Laws and Regulations, every business entity registered in the UK, has a set of annual compliance requirements that they must abide by to remain in good standing and continue uninterrupted business operations.

Forgetting to file your Annual Confirmation Statement or missing the deadline with the filing of the Company’s Annual Accounts or a Tax Return will result in penalties being charged to your flourishing business, threat of administrative dissolution and freeze of company’s assets, or, in the worst case scenario directors of the company being prosecuted and disqualified for failure to comply with statutory annual obligations.

“In law, ignorantia juris non excusat” (in Latin, stands for “ignorance of the law excuses not”). So why risk it? We are here to help you stay on top of deadlines, avoiding penalties for late submissions. Coddan offers ongoing support, including reminders for annual filing requirements. Our services ensure your business stay compliant with regulatory standards throughout your business journey.

Our timely assistance ensures your financial standing remains strong.

Embark on your entrepreneurial journey with confidence, armed with the knowledge to navigate the DIY UK company registration process successfully. With Coddan CPM by your side, you have a reliable partner to guide you through every step, ensuring a solid foundation for your business in the vibrant UK market. Good luck!