Having established what you need to do first as a director of a newly-registered company, let’s look at what comes next after completing these initial steps.
After setting up a new company, we recommend that you register for your CRN, complete your tax registrations and open a company business account.
To get started, let’s briefly review the first steps you should have already taken as a new company director. As mentioned previously, if you have just become a new company director, you will need to:
- Understand your obligations and duties as a director.
- Start and maintain a company register, collect your relevant company documents and records.
- Start keeping track of your company decision making by written minutes.
- Start and maintain a share register.
- Keep all your consents up to date.
With these immediate actions squared away, you can now start completing the following steps.
1. Register Your ABN
After you have applied through Companies House, you should also receive your Company Registration Number (CRN) which is a unique 8-digit number identifying your company.
A CRN generally required for all registered companies in the UK.
Don’t forget to store a copy of your CRN as part of your record-keeping obligations.
2. Unique Taxpayer Reference (UTR)
With your CRN in hand, you will also receive your Unique Taxpayer Reference (UTR), which is essentially a unique 10-digit number used for Corporation Tax for your company.
This is because your company is now a separate legal entity, so it will need its own UTR for the end of financial year tax return and during the year BAS filings.
You should receive your UTR when you register your company with Companies House. If you’re not sure, get help from your accountant and tax agent.
3. Register For Corporation Tax
Within 3 months of doing business, you’ll also need to register your company for Corporation Tax.
If you have employees (including yourselves as directors), you will need to register for Pay As You Earn (PAYE) Tax. This is HMRC’s way of collecting income tax and national insurance from employees.
You can register for PAYE here.
4. Register For VAT
If you believe your company will generate over $£85,000 in the financial year, you will need to register for and collect Value Added Tax (VAT) on your invoices. If you are not likely to exceed the amount for the current financial year, in the future be sure to register within 21 days of revenue exceeding the financial threshold.
If you are unsure which accounting method is best for your business, or which one you are currently using, contact your accountant. Your accountant can also help you register for VAT, or you can do it yourself on the HMRC website.
5. Open A Company Bank Account
Now that you have successfully registered your company with the tax office, you will be able to open a company bank account which you will need to use for making your company transactions moving forward.
How To Open A Company Bank Account:
In order to open your company’s bank account, prepare the following:
- Authority to open a bank account. Most company setup packages will have a handy template document for this type of resolution, which requires you to declare that the company has decided to open a bank account and that all the company directors agree, with their signatures.
- Details of all your company’s directors, secretary and members, together with their relative appointments dates.
- Your company’s Certificate of Registration.
- Your Company Constitution, if you have one.
Once you have these documents prepared, bring them to your bank manager who will be able to open your bank account for you.
If you have taken the steps above, congratulations! You have now completed your post company registration setup actions and are ready to focus on growing your business.
However, don’t sleep on your other legal obligations. Be sure to keep accurate records throughout the year, be mindful of your directors’ duties and keep your company details up to date with Companies House and through your annual statement.
If you would like help or more information about any of the above steps, be sure to contact us at Sprintlaw for qualified, fixed-fee legal help. Contact the team at 08081347754 or [email protected].
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