How the Company registration process for a new company works
When you choose to register a new company, there are several ways to do so and several options for its structure. Registering your company as an individual legal body provides you with a good degree of personal protection and is mandatory if you are intending employing staff.
Company registration information
When you follow the company registration procedure as an employer, the following information must be supplied:
- Name, company name, name of partners
- Full business or home address
- Business or home telephone number
- Name and address of registered office for correspondence
- Contact telephone number and email address
- Date of first payday, or first day you paid expenses and/or benefits to employees.
Limited companies must also provide:
- Unique taxpayer reference
- Trading name
- Company registration number
- Address and telephone number of registered office
- Nature of the business
- Details of Company Pension Scheme (if applicable)
- Number of employees to be employed in the current tax year
- Details of any sub-contractors
- Names of company directors and their National Insurance Numbers.
When to Register
When you first appoint your first employee, you must register as an employer with Her Majesty’s Revenue and Customers (HMRC) if one or more of the following applies:
- They are being paid over and above the PAYE threshold
- The employer has another job
- The employer is receiving a state, company or private pension
- They are being paid over and above the National Insurance Lower Earnings Limit
- They are receiving employee benefits.
You must be aware that you may need to register as an employer, even if you’re the only person working in the business. If you run a one-person limited company, you will be classed as both an employer and an employee.
After Company Registration
You will receive a letter from HMRC with your unique PAYE reference and Accounts Office numbers. There is also a link supplied to the HMRC’s ‘New Employer – getting started’ online guide. Ensure you keep this information safe for future reference. If you have registered using the online tax registration service, this will automatically enrol you for PAYE online for employers. This will need to be activated and can take up to ten days.
Important upcoming changes and updates
From 6 April 2013, some changes will apply to how employers report payroll information. This is called PAYE in real time (RTI). New employers can use the new system now, and those registering between 6 November 2012 and April 2013 will be automatically included in the RTI pilot. Being involved in the pilot will mean you will not need to submit the Employer Annual Return for this current tax year. You can find out more about the RTI pilot scheme by reading the document ‘Starting to report PAYE in real time in 2012-2013. If you choose to opt out of the pilot, you must register via the email form.
The main stages of the company registration process are:
- Go to the HMRC online services homepage – click the ‘Register’ button
- Click on ‘Organisation’ and select ‘PAYE for Employers’ on following page
- Read and accept the terms and conditions of HMRC’s Online Services
- Enter your name and email address
- Create a password which will you will need to use the service
- You will be allocated a User ID. Either write it down or screen print it
- Enter your Employer PAYE reference and Accounts Office reference.
That is all there is to it. You just need to wait for snail mail to deliver a letter containing your Activation Code. Once you receive this, activate the service – and away you go.
This post was produced by http://www.a1companies.com/. They are UK specialists in company registration and assisting new business start ups.