This comprehensive guide explains everything you need to know about Companies House identity verification, including who is required to verify, when verification must be completed, how the process works, and the serious consequences of non-compliance.

What Is Companies House Identity Verification?

Companies House identity verification is a mandatory legal requirement introduced under the Economic Crime and Corporate Transparency Act 2023. The UK government has implemented this measure to combat economic crime, which costs the British economy billions of pounds annually and undermines trust in legitimate businesses.

From 18 November 2025, every person holding a qualifying role in a UK company must prove their identity to Companies House. This includes company directors, Persons with Significant Control (PSCs), and certain other officers. The verification process confirms you are who you claim to be and creates a cleaner, more trustworthy business environment by making it significantly harder for criminals to hide behind shell companies or impersonate legitimate business owners.

Once you’ve successfully verified your identity, you’ll receive a unique Companies House personal code – a permanent identifier that you must use when filing certain documents, particularly confirmation statements. Without this code, Companies House will reject your filings, and your company will fall out of compliance.

Why Has Identity Verification Become Mandatory?

The UK government introduced mandatory identity verification to address several critical problems:

Preventing Economic Crime

Economic crime – including fraud, money laundering, and corporate identity theft – costs the UK economy an estimated £290 billion per year according to government figures. Criminals have long exploited the ease of UK company formation to create shell companies, launder money, and commit fraud while hiding their true identities.

Protecting Legitimate Businesses

Identity verification protects honest business owners from being impersonated by criminals. Before this requirement, fraudsters could falsely register companies using stolen identities, damaging the credit ratings and reputations of innocent people who had no connection to the fraudulent activities.

Improving Register Accuracy

The Companies House register contains information on over 5 million UK companies. However, historically, there has been no systematic way to verify that the people listed as directors or PSCs are genuine. Identity verification dramatically improves the accuracy and trustworthiness of this public register.

Meeting International Standards

The UK is aligning with international best practices for corporate transparency. Many other jurisdictions have already implemented similar verification requirements, and the UK’s measures help combat cross-border economic crime and improve the country’s reputation as a place to do legitimate business.

Who Needs to Verify Their Identity with Companies House?

You must verify your identity if you hold any of the following roles:

Company Directors

All company directors must verify their identity, including:

• Directors of private limited companies
• Directors of public limited companies (PLCs)
• Shadow directors (people who give instructions that directors usually follow)
• Corporate directors will need to verify at a later date (not yet implemented)

Persons with Significant Control (PSCs)

A PSC is someone who has significant influence or control over a company, typically defined as:

• Owning more than 25% of shares in the company
• Holding more than 25% of voting rights
• Having the right to appoint or remove the majority of directors
• Otherwise, exercising significant influence or control

Equivalent Officers in Other Entity Types

Identity verification also applies to equivalent positions in:

• Members of Limited Liability Partnerships (LLPs)
• General partners in limited partnerships
• Managing officers of other corporate bodies

Company Secretaries Who File Documents

If you’re a company secretary who files documents with Companies House, you’ll need to verify your identity.

Authorised Corporate Service Providers (ACSPs)

If you provide company formation or filing services professionally, you must register as an ACSP and verify your identity. This includes accountants, solicitors, and company formation agents who file documents on behalf of clients.

When You Only Need to Verify Once

In most cases, you only need to verify your identity with Companies House once in your lifetime. Once verified, your Companies House personal code remains valid across all your current and future roles. However, you must not verify again unless Companies House specifically instructs you to do so.

When Do You Need to Verify Your Identity?

The deadline for identity verification depends on your specific circumstances:

The Key Date: 18 November 2025

Identity verification becomes a legal requirement on 18 November 2025. From this date, Companies House will enforce strict compliance, and the penalties for non-compliance will come into effect.

Your Personal Deadline

Your individual deadline depends on:

• What role do you hold (director, PSC, etc)
• When you were appointed to that role
• Whether you hold multiple roles

From 18 November 2025, the Companies House register will display the specific due date for each role you hold. You can check your personal deadline by viewing your company’s information on the Companies House register.

For Current Directors

If you’re already a director on 18 November 2025, you must provide your Companies House personal code in your company’s next confirmation statement filing. This means you should verify your identity before your next confirmation statement is due.

For New Director Appointments

If you become a director after 18 November 2025, you must provide your personal code as part of your appointment filing or when incorporating a new company. You cannot be validly appointed without a verified identity.

For PSCs

PSCs face specific deadlines. Every PSC will have a 14-day period during which they must provide their Companies House personal code. The exact dates of your 14-day period depend on whether you were registered as a PSC before 18 November 2025 and whether you’re also a director of the same company.

Don’t Wait Until the Last Minute

While you have until specific deadlines to comply, we strongly recommend verifying your identity as soon as possible. The verification process can take several days, and if there are any issues with your documents or the system is experiencing high volumes near the deadline, delays could result in non-compliance and penalties.

How to Verify Your Identity with Companies House

There are two main routes to verify your identity with Companies House: doing it yourself through GOV.UK One Login, or using an Authorised Corporate Service Provider (ACSP) like Mint Formations.

Option 1: DIY Verification Through GOV.UK One Login

The government provides a free identity verification service through GOV.UK One Login. However, this route has several challenges:

How the DIY process works:

1. You create or sign in to your GOV.UK One Login account
2. The system asks you questions to determine the best verification method for your circumstances
3. Depending on your answers, you may need to:
   • Answer multiple security questions about your credit history and personal details
   • Upload photos of identity documents using specific formats and quality requirements
   • Visit a participating Post Office branch in person with original documents

Challenges with DIY verification:

• The system requires precise document formats and may reject submissions for minor errors
• Security questions can be difficult to answer accurately if your credit history is limited or you’ve moved addresses frequently
• Post Office visits are inconvenient and require you to find a participating branch during business hours
• Many users report confusion navigating the different pathways and requirements
• If your initial attempt fails, you may need to start the entire process again
• The system doesn’t provide guidance on which documents will work best for your situation

Timeline: Verification timing varies significantly depending on which method the system assigns you. It can range from immediate approval (rare) to several weeks if you encounter document rejections or need to visit a Post Office.

Option 2: Use an Authorised Corporate Service Provider (ACSP)

An ACSP is a professional agent registered with Companies House and a UK Anti-Money Laundering (AML) supervisory body. ACSPs are legally authorized to verify identity on your behalf, and this route offers significant advantages over DIY verification.

How ACSP verification works:

1. You engage an ACSP like Mint Formations (£19 + VAT per person)
2. The ACSP provides clear guidance on which documents you need
3. You securely upload your documents through the ACSP’s portal
4. The ACSP conducts the verification and AML checks to Companies House standards
5. The ACSP submits your verification to Companies House
6. You receive your Companies House personal code

Advantages of using an ACSP:

• Expert guidance: ACSPs know exactly which documents Companies House will accept and can advise you before submission
• No government system navigation: You avoid the complexity of GOV.UK One Login entirely
• Remote verification: Everything is done online – no Post Office visits required
• International accessibility: ACSPs can verify identity for directors living anywhere in the world
• Error prevention: Professional review of your documents before submission reduces rejection risk
• Faster processing: Most ACSP verifications are completed within 48 hours
• Peace of mind: You’re confident it’s done correctly the first time

Who can act as an ACSP:

Not just anyone can verify identities. To become an ACSP, an organization must:

• Register with Companies House as an authorised agent
• Be supervised by a UK Anti-Money Laundering (AML) regulatory body
• Meet strict compliance and verification standards

Common ACSPs include accountancy firms, solicitors, and specialist company formation agents like Mint Formations.

Understanding Your Companies House Personal Code

Your Companies House personal code is central to the new verification system. Here’s what you need to know:

What Is a Personal Code?

A Companies House personal code is a unique identifier issued to you after successful identity verification. Think of it like your National Insurance number – it’s personal to you as an individual, not to any company you’re associated with.

Why You Need a Personal Code

From 18 November 2025, you must provide your personal code in various situations:

• Confirmation statements: Every confirmation statement must include the personal codes of all directors
• Director appointments: New directors must provide their code when being appointed
• PSC notifications: PSCs must provide their code when notifying Companies House of their status
• Company formations: Directors of newly incorporated companies must include their codes

Without personal codes, Companies House will automatically reject these filings.

How to Get Your Personal Code

You receive your personal code immediately after successful verification, whether you verify through GOV.UK One Login or an ACSP. The code is delivered to you electronically, and you should store it securely.

Sharing Your Personal Code

You may need to share your personal code with:

• Your company secretary or accountant who files confirmation statements on your behalf
• Your ACSP, if they handle Companies House filings for you
• Other trusted professionals who make filings for your company

Important security note: Only share your personal code with people you trust completely. Treat it with the same level of security as your HMRC Unique Taxpayer Reference (UTR) or other sensitive identifiers. While identity verification makes impersonation much harder, it’s not impossible if someone gains access to your code.

Connecting Your Code to Your Roles

Simply having a personal code isn’t enough – you must actively connect it to each of your registered roles. For directors, this happens automatically when you provide the code in your confirmation statement. For PSCs, there will be an online service to provide your code when the requirement comes into force.

What Happens If You Don’t Verify Your Identity

The consequences of failing to verify your identity are severe and can affect both you personally and your company.

Immediate Filing Rejections

From 18 November 2025, Companies House will automatically reject any filing that doesn’t include the required personal codes. This means:

• Your confirmation statement will be rejected if any director hasn’t provided their code
• Director appointment forms without valid codes will be refused
• You cannot incorporate new companies without verified directors
• PSC notifications without codes will be rejected

Late Filing Penalties

When your confirmation statement is rejected, you still have a legal obligation to file it by your deadline. If you miss your deadline because of verification issues, your company faces:

• Late filing penalties starting at £150 for private companies
• Escalating penalties the longer the statement remains overdue
• Potential strike-off proceedings if the company appears non-compliant

Criminal Offences for Directors

This is the most serious consequence: acting as a company director without verifying your identity is a criminal offence once verification becomes mandatory for your role.

If you continue to act as a director after your verification deadline passes, you:

• Commit a criminal offence under the Economic Crime and Corporate Transparency Act 2023
• Face potential prosecution by Companies House or other authorities
• Risk director disqualification, preventing you from being a director for a specified period
• May face personal financial penalties or fines

Offences for the Company

The company itself also commits an offence if it allows unverified directors to continue acting in that capacity. This means:

• The company faces a prosecution risk
• All directors (even verified ones) may be held jointly responsible
• The company can face substantial financial penalties
• The company’s reputation and ability to do business may be damaged

Offences for PSCs

PSCs who fail to verify their identity and provide their personal code also commit criminal offences. This is true whether you’re currently a PSC or were a PSC during the relevant period.

Enforcement Action

Companies House has stated it will take enforcement action against non-compliance, including:

• Formal investigation of unverified directors and PSCs
• Referral to law enforcement authorities for prosecution
• Director disqualification proceedings
• Potential criminal court proceedings with associated legal costs

Business Disruption

Beyond legal penalties, non-compliance causes serious business disruption:

• You cannot make any changes to company information at Companies House
• You cannot open new business bank accounts (which require Companies House verification)
• You may struggle to secure business contracts if customers see compliance issues
• Your company may be struck off the register if prolonged non-compliance suggests it’s no longer operating legitimately

What Documents Do You Need to Verify Your Identity?

Companies House requires documents from an approved list to verify your identity. The exact requirements may vary depending on your verification route, but typically include:

Photo Identification

You’ll need one of the following:

• Valid UK or international passport
• UK photocard driving licence
• National identity card from an EEA country
• Biometric residence permit

Important: The document must be current and not expired. Low-quality photos or scans may be rejected, particularly for DIY verification.

Proof of Address

You’ll typically need to provide proof of your current residential address, such as:

• Recent utility bill (gas, electricity, water) dated within the last 3 months
• Council tax bill from the current year
• Bank or building society statement dated within the last 3 months
• Mortgage statement from the current year
• UK or EEA driving licence showing your current address

Important: The address on your proof of address must match the address you’re registering with Companies House. P.O. Box addresses are not acceptable.

Additional Documents for AML Compliance

Depending on your circumstances, you may need to provide additional documentation for Anti-Money Laundering (AML) checks, particularly when using an ACSP. This might include:

• Proof of previous addresses if you’ve moved recently
• Additional identification if your current documents have issues
• Business documentation showing your role in the company

Document Quality Requirements

Whether verifying through GOV.UK One Login or an ACSP, your documents must:

• Be clearly legible with no blurring or obscured text
• Show all corners and edges of the document
• Not be photocopies (original documents or certified copies only)
• Match the information you’ve provided about yourself
• Be in color if they’re photo ID documents

Pro tip: Using an ACSP like Mint Formations eliminates guesswork about document requirements. We’ll tell you exactly which documents to provide based on your specific situation, significantly reducing the risk of rejection.

Common Mistakes to Avoid When Verifying Your Identity

Many people encounter problems during identity verification. Here are the most common mistakes and how to avoid them:

Mistake 1: Waiting Until the Last Minute

Don’t wait until your confirmation statement is due to start the verification process. If you encounter any problems – document rejections, system errors, or need to source better documents – you may miss your deadline and face penalties.

Solution: Verify your identity as soon as possible, ideally well before 18 November 2025.

Mistake 2: Using Poor Quality Document Scans

Blurry photos, documents with corners cut off, or scans with shadows and reflections are frequently rejected, especially by the automated GOV.UK One Login system.

Solution: If you’re verifying yourself, take high-quality photos in good lighting on a contrasting background. Better yet, use an ACSP who can guide you on acceptable document quality.

Mistake 3: Address Mismatches

Your proof of address must exactly match the address you’re registering with Companies House. Even small differences (like “Street” vs “St” or apartment numbers) can cause rejections.

Solution: Double-check that all your documents show your address in the same format before submitting.

Mistake 4: Using Expired Documents

An expired passport or driving licence will be rejected, even if it expired recently.

Solution: Check expiry dates before starting verification. If your documents have expired, renew them first.

Mistake 5: Not Understanding the Verification Methods

The GOV.UK One Login system may assign you a verification method that’s unsuitable for your circumstances – such as credit check questions if you have no UK credit history, or Post Office verification when you live abroad.

Solution: If you’re not a straightforward UK resident with standard documents and a credit history, an ACSP verification is more reliable.

Mistake 6: Verifying Multiple Times

Companies House explicitly states you must only verify once unless instructed otherwise. Some people mistakenly think they need to verify separately for each company they’re involved with.

Solution: You verify once, receive one personal code, and use that code for all your roles across all companies.

Mistake 7: Not Keeping Your Personal Code Secure

Treating your personal code carelessly exposes you to potential fraud risk.

Solution: Store your personal code securely, like you would a password or PIN. Only share it with trusted professionals who legitimately need it to file on your behalf.

Mistake 8: Forgetting to Actually Provide the Code

Simply having a personal code isn’t enough – you must actively provide it in filings. Some directors verify successfully, but then forget to include their code in the next confirmation statement.

Solution: Make a note of when your next confirmation statement is due and ensure whoever files it has your personal code.

How Mint Formations Can Help You Verify Your Identity

Mint Formations is a registered Authorised Corporate Service Provider (ACSP) with Companies House. We’ve helped thousands of UK company directors navigate Companies House requirements, and we’re now offering professional identity verification services.

Why Choose Mint Formations?

1. Expert Guidance: We know exactly what Companies House requires and can tell you which documents will work for your specific circumstances before you submit anything.

2. Fast Processing: Most verifications are completed within 48 hours of receiving your documents, compared to unpredictable timing with DIY methods.

3. Remote & Convenient: Everything is handled online through our secure portal. No GOV.UK One Login confusion, no Post Office visits, no hassle.

4. International Directors Welcome: We regularly verify identity for directors living abroad. Our ACSP status allows us to handle international verifications that the DIY route makes difficult.

5. Error Prevention: We review your documents before submission to Companies House, dramatically reducing rejection risk and avoiding the need to restart the process.

6. Affordable & Transparent: Our verification service costs just £19 + VAT per person – a small investment for peace of mind and professional handling.

7. Established & Trusted: We’ve been helping UK businesses with company formations and compliance for years. We’re not a freelancer or new entrant – we’re an established ACSP with proven expertise.

Our Verification Process

1. Contact Us: Let us know you need identity verification
2. Document Guidance: We tell you exactly which documents to prepare
3. Secure Upload: You upload your documents through our encrypted portal
4. Verification: Our ACSP team conducts AML checks and verifies your identity
5. Submission: We submit your verification to Companies House
6. Receive Your Code: Your Companies House personal code is delivered to you
7. Ongoing Support: We can handle your confirmation statements and other filings using your code

Book Your Verification Today

Don’t risk penalties, rejected filings, or criminal offences. Let Mint Formations handle your Companies House identity verification professionally and efficiently.

Price: £19 + VAT per person

Visit www.mintformations.co.uk or contact us today to get started.

Frequently Asked Questions About Identity Verification

Do I need to verify again if I’m already a director of multiple companies?

No. You only verify once, and you receive one personal code that you use across all your companies and roles.

What if I live abroad? Can I still verify?

Yes. You can use an ACSP like Mint Formations to verify your identity from any country. We handle international directors regularly.

Is identity verification a one-time thing, or do I need to renew it?

For most people, identity verification is a one-time requirement. You should not verify again unless Companies House specifically instructs you to.

Can I be a director while my verification is pending?

If you’re already a director before your verification deadline, you can continue acting in that role while verification is pending. However, you must complete verification by your deadline to remain compliant.

What happens if I sell my company? Do I still need to verify?

If you’re still a director or PSC at the point when verification becomes mandatory for your role, yes, you must verify even if you’re planning to leave the company. If you resign before your verification deadline, you don’t need to verify for that specific role.

Can a company secretary verify the identity of directors?

No. Each individual must verify their own identity. A company secretary or ACSP can facilitate the process, but they cannot verify on behalf of someone else without that person’s documents and cooperation.

What if my documents are in a foreign language?

Documents in foreign languages typically need to be accompanied by certified translations. An ACSP can guide you on whether your specific documents require translation.

Is my personal data safe when I verify?

Yes. Both GOV.UK One Login and registered ACSPs must comply with UK GDPR regulations. Mint Formations uses encrypted portals and follows strict data protection standards. Your documents are handled securely and deleted after verification is complete.

Can I verify my identity now, even though the requirement doesn’t start until November 2025?

Yes. The verification service is available now, and we recommend verifying as early as possible to avoid last-minute issues.

What if I’ve changed my name?

You should verify using your current legal name. If your documents show different names (for example, your passport shows your maiden name but you now use your married name), you may need to provide additional evidence like a marriage certificate. An ACSP can guide you through this.

Will I get reminders from Companies House about my verification deadline?

Companies House will display due dates on the register from 18 November 2025, but it’s your responsibility to check and comply. Don’t rely on receiving reminders – take proactive action.

The Bigger Picture: Why This Matters for UK Business

Companies House identity verification represents a fundamental shift in how the UK regulates corporate transparency. While it creates an initial administrative burden, the long-term benefits for legitimate businesses are significant:

Creating a Trustworthy Business Environment

When every director and PSC is verified, the Companies House register becomes a more reliable source of truth. This benefits:

• Customers and clients who can trust they’re dealing with real, accountable individuals
• Business partners who can conduct better due diligence
• Investors who can make more informed decisions
• Banks and financial institutions that can better assess risk

Leveling the Playing Field

Unverified companies have an unfair advantage when they can operate with hidden ownership or fraudulent directors. Identity verification creates a level playing field where all businesses operate under the same transparency standards.

Protecting Your Business Reputation

As identity verification becomes universal, being verified will become an expected standard. Companies without verified directors may face:

• Suspicion from potential business partners
• Difficulty opening business bank accounts
• Challenges securing business loans or investment
• Reduced credibility in the marketplace

Aligning with International Standards

The UK’s verification requirements align with global trends toward greater corporate transparency. This helps UK businesses:

• Operate more easily in international markets
• Meet overseas compliance requirements
• Demonstrate credibility to international partners

Take Action Now: Don’t Wait Until It’s Too Late

Companies House identity verification is not optional, and the consequences of non-compliance are severe. Whether you’re a director of one company or multiple businesses, whether you live in the UK or abroad, you must verify your identity by your personal deadline.

The smart approach is to verify now, before the rush:

• Avoid last-minute system overloads as the deadline approaches
• Give yourself time to resolve any document or technical issues
• Ensure your company can file its next confirmation statement without problems
• Eliminate the risk of criminal prosecution or director disqualification

Two Paths Forward

You can either:

1. Navigate GOV.UK One Login yourself – Free but complex, with unpredictable processing times and high rejection rates
2. Use Mint Formations’ ACSP service – £19 + VAT for professional handling, expert guidance, and peace of mind

For most directors and PSCs, the small cost of professional verification is a smart investment that saves time, reduces stress, and ensures compliance.

Get Started with Mint Formations Today

Mint Formations makes Companies House identity verification simple, fast, and stress-free. As a registered ACSP, we’re legally qualified to verify your identity, and we’ve helped thousands of UK business owners stay compliant with Companies House requirements.

Our verification service includes:

• Expert guidance on document requirements
• Secure document upload portal
• Professional AML checks
• Direct submission to Companies House
• Your Companies House personal code was delivered promptly
• Ongoing support for your compliance needs

Price: Just £19 + VAT per person

Don’t risk penalties, prosecution, or business disruption. Verify your identity with Mint Formations and stay ahead of the 18 November 2025 deadline.

Visit www.mintformations.co.uk or contact us today to get started.

About Mint Formations

Mint Formations is a leading UK company formation agent and Authorised Corporate Service Provider (ACSP) registered with Companies House. We specialize in company formations, compliance services, and helping UK businesses navigate Companies House requirements efficiently and affordably. With years of experience and thousands of satisfied clients, we’re your trusted partner for all Companies House matters.

The post Companies House Identity Verification: The Complete 2025 Guide for UK Directors and PSCs appeared first on Mint Formations Blog.

Want to turn your business into a separate legal entity? Companies House is the body that creates your new company and adds it to the register. It’s where you submit your annual confirmation statement and information relating to changes to your business. Crucially, Companies House also makes key information accessible to the public, so potential customers can see that your business is genuine.

Here’s a closer look at Companies House and why it’s important – along with answers to some common Companies House-related questions.  

What Is Companies House?

Companies House is the name for the UK’s company registrar, responsible for incorporating and dissolving companies, and for maintaining an up-to-date register of company information. It operates as an executive agency of the Government’s Department for Business and Trade.

Do I need to register with Companies House? 

Every type of public and private company in the UK is required to be registered with Companies House. This includes the following: 

• Private limited companies (the most common type of company)
• Public limited companies (PLCs)
• Limited liability partnerships (LLPs)
• Foreign companies with a UK branch, and those which carry out significant business activities in the UK  

Each year, Companies House handles more than 500,000 new company incorporations. Tip: to see why so many business owners decide to ‘go limited’, check out our guide, How to Change from Sole Trader to Limited Company.

What does Companies House do? 

The main functions of Companies House are as follows: 

Incorporation 

Companies House administers registration applications, checking that the details are complete and correct and that applicants are who they say they are, before creating new companies and adding them to the register. For a summary of the information you need before applying to register a company, read our Company Formation Checklist.

Once Companies House has approved your application and added your new company to the register, it issues you with a Certificate of Incorporation, confirming your official company number and date of incorporation. 

Record keeping 

Companies House is where you file key information relating to your business: i.e. your annual accounts and confirmation statements, changes to company details (e.g. change of registered address or appointment of a new director), company resolutions, and changes to the articles of association. This information is made accessible to the public via the free Companies House online search service. 

Dissolution 

Directors can apply for voluntary dissolution if they decide that their company is no longer needed. In cases of non-compliance, e.g. where a company fails to submit its annual filings, or where a company appears to be dormant (no longer trading), Companies House will start the process of dissolution; i.e. issuing notices, before striking it from the register. 

Why is Companies House important? 

Companies House performs three important roles at once: a supporter of businesses, an enforcer of the rules relating to setting up and maintaining companies, and a source of reliable information. 

Supporting businesses 

No mountains of paperwork. No long delays. No eye-watering costs. Instead, Companies House aims to deliver a clear and fair framework for getting companies set up and keeping them running. It (mostly!) succeeds with this. 

Thanks to this, setting up a company becomes a viable option for pretty much anyone. Once your company is set up under your unique name of choice, it becomes a legal entity with its own status and rights: no one else can claim the company name as theirs. 

Enforcing the rules 

Companies House monitors whether companies are sticking to the rules. Failure to comply with your filing obligations – notably, timely submission of annual accounts and confirmation statements – can lead to Companies House imposing penalties, fines, and even striking off companies in default. 

This isn’t about trying to catch companies out just for the sake of it. These obligations are designed to encourage good corporate governance practices, weed out sham businesses, and prevent fraud. 

Providing information

Is this business legit? Who’s behind it? Does it seem like a safe pair of hands? 

Through the Companies House search page, anyone can search for and instantly view essential company details, including registered office address, company status, details of directors and persons of significant control, and companies’ filing history. 

Once your business is incorporated, it becomes possible for customers, investors, and suppliers to verify your details via the companies register. Incorporation is therefore a highly useful trust indicator. 

How much does it cost to register a company with Companies House? 

As of 1 May 2024, the Companies House fee for incorporation is £50 if you do it online, or £71 if you submit it by post. A full summary of the latest fees is available here.   

With formation packages starting at just £54.99 inclusive of the Companies House fee, Mint Formations ensures that dealing with Companies House is as straightforward as possible. To select the right level of assistance for getting your new company off to the right start, explore our registration packages.

Frequently asked questions

What does Companies House do? 

Companies House is the UK’s registrar of companies, responsible for incorporating and dissolving companies, receiving, checking, and publishing company information, and ensuring that companies comply with their governance obligations, including the filing of annual accounts and confirmation statements. 

Is Companies House part of HMRC?

No, the Companies House and HMRC are separate government bodies. You deal with Companies House for setting up your company, annual filing obligations, and notifications relating to important changes to your business. You deal with HMRC in relation to business tax, i.e. corporation tax, and VAT (if relevant). 

Once you have registered your company, and assuming that you intend to start trading straight away, you must register with HMRC for corporation tax within three months. For more information about this, see our Guide to Corporation Tax.  

What does it mean to be registered with Companies House? 

Being registered with Companies House means your business has been structured as a distinct legal entity – i.e. a company. After registration, Companies House issues you with a certificate of incorporation, proving the legal status of your business. Information relating to the company is also added to the register of companies.

Do all companies have to be in the Companies House?

All categories of private and public companies need to be registered with Companies House. This includes private limited companies (Ltd), public limited companies (PLCs), and limited liability partnerships (LLPs). 

Can anyone view Companies House? 

Yes. Details of companies – including name, company number, registered office address, directors, and persons of significant control – are publicly accessible via the Companies House search page. 

Can you be a director without being on Companies House? 

Details of each director must be included in your application to register a company, and these details are visible on the register after incorporation. This includes the director’s full name, date of birth and service address where official correspondence can be sent. Worried about privacy? By using a directors service address provider, you can keep your residential address off the public register.

Are self-employed on Companies House?

No. If you operate your business as a sole trader – either on your own or as part of a partnership – there is no legal distinction between you and your business. Your business does not exist as a separate legal entity and is not eligible to be listed on the Companies House Register. 

Do you need to register information with Companies House? From starting a business to dissolving an old one, Mint Formations can help!

The post What is companies house & why is it important? appeared first on Mint Formations Blog.

Implications for new company setup

For individuals or entities planning to establish a new company, the fee increase directly impacts the cost of incorporation. Starting from 1st May 2024, the expenses associated with setting up a business will be higher.

Impact on existing companies

Existing company owners will also feel the effects of this fee hike. Filing fees, including the annual fee for submitting a confirmation statement as required by UK law, will increase.

Seeking alternatives

You might be wondering if there are alternatives to mitigate these increased fees. However, it’s important to note that Companies House fees are regulated by law, and all providers and applicants are subject to the same fee structure.

How Mint Formations can help

Incorporate before May 1st

Mint Formations offers a solution to mitigate the impact of the fee increase. By incorporating your company before 1st May 2024, you can lock in the current fee, potentially saving significant expenses.

Strategic consultation

Our team at Mint Formations is dedicated to helping you navigate through these changes. We provide strategic consultation services to help you manage and mitigate the ongoing impact of fee increases.

Expert accountancy services

We also offer expert accountancy services tailored to your specific needs. Our professionals can assist you in optimising your financial strategies amidst these regulatory changes.

Speak to our expert team

While the full list of fee increases can be found here, what’s crucial is taking proactive steps to safeguard your financial interests. Get in touch with our team of experts at Mint Formations and by your side, we can navigate through these changes with confidence to secure your financial future.

The post Companies House fee increase appeared first on Mint Formations Blog.

If you want to know more about how to become self-employed in the United Kingdom, we’re here to help. We’ve put together this step-by-step guide that will take you to self-employed success.

Step one: Is being self-employed right for you?

It’s easy to get caught up in the benefits of working for yourself, but it’s important to remember that there are drawbacks, too. Here are the top pros and cons that you’ll need to consider before becoming self-employed:

Pros

• Pick the hours that you work.
• Work around your life and commitments.
• More control over your income and how much you charge.
• Autonomy over key business decisions.

Cons

• You may end up working more hours.
• Income may be irregular and vary from month to month.
• You’ll be responsible for your own bookkeeping and accounting.
• No employment benefits such as paid leave, sick leave or medical care.

Step two: Limited company or sole trader?

Before you take the step of going self-employed, you must decide which form of self-employment works for you. There are nuances between the types of self-employed status available. But if you cut it down to basics, you can be a limited company business owner or a sole trader. So what’s the difference?

• A limited company business owner sets up a business organisation and runs it as the director, making money through the business.
• A sole trader registers themselves as a self-employed worker and makes money as an individual. You, as a person, are the business.

For example, you could set yourself up as an electrician or start a limited company that provides electrical services. The differences have to do with scale. Being a sole trader involves much less administration and paperwork, and there is more flexibility involved as rules don’t tie you down. However, limited companies allow you to obtain investments in stocks and shares, hire employees, protect your brand name and limit your liability in the case of legal matters like bankruptcy.

Both have their advantages; both have their drawbacks. It’s important to take time to understand how they’ll benefit your plans and select the best option for you.

Step three: Understand your self-employed obligations

On the subject of taking time to understand what’s important to your new business, once you’ve decided what type of self-employed worker you want to be, the next step is to work out what your obligations and responsibilities will be. At this point, you want to do two things.

You should look into general responsibilities and responsibilities specific to your industry.

General responsibilities

In terms of general responsibilities, you’ll need to understand and research what is involved in the formation of your business. You need to be aware of any legal requirements, what tax you have to pay and what deadlines are involved with all of the above. These will vary from year to year, business to business, so make sure you find the details you need.

Industry-Specific responsibilities

Regarding industry-specific responsibilities, you’ll need to consider details like compliance with regulations, laws governing your industry and other unique influencing factors. If you have any network connections, the best way to get coverage of these is to ask somebody already working in the industry. If you don’t, online forums can be a great place to start, as can simple research.

Step four: Build your self-employed business plan

A successful business needs a business plan. You need a strategy of how you will achieve growth and develop into a profit-building machine. You might also want to consider other aspects of business management, such as how you will tackle finances, find suppliers and more.

Before you register as self-employed, take the time to complete step three and create a comprehensive business strategy. Once you’ve set up your business, it’ll be difficult not to get moving immediately, so we suggest you don’t delay this step.

Registering to be self-employed is near-instantaneous and doesn’t have to be done before you start work — just to fit with the tax year. Establishing a limited company only takes a few days at the most. That means once you’ve taken off, you’ll want to fly. So, do your pre-flight checks now, rather than when you are in the air, and prepare for the day your employment status officially changes.

Step five: Create your budget

Once you’ve made your plan, you need to consider the costs involved in getting your business operational. It may be that you have minimal start-up costs and have most of the things you need already, or you might have to purchase a whole host of new equipment.

Some things you may need to think about with your business budget include:

• Equipment such as tools, computers and phones.
• Desk and office equipment.
• Buying or hiring a vehicle if you’re travelling for work.
• Vehicle fuel costs and maintenance.
• Online subscription services to digital tools.
• Building and hosting a website.
• Advertising and marketing materials.
• Accountancy costs.
• Insurance.

You may only need a few of these things, but it’s still important to understand how much you need to invest straight off the bat. Spend time thinking about your personal expenses, such as rent, mortgage and bills, as this will impact how much you can afford.

The good news is that you can claim back the costs of business purchases via allowable expenses when you complete your self-assessment, but you’ll still need to be able to pay for them upfront.

Step six: Register as self-employed

To register as self-employed simply means to register with HMRC. By doing so, you let HMRC know you will be earning money yourself and, therefore, must report on income and pay tax, including National Insurance contributions and personal income tax.

You do this by filling out a tax return every year. To submit your tax return, you need to register with HMRC directly. You can do this online. Just provide a few personal details alongside your email address, and you’ll have access to the online HMRC portal. Here, you can submit tax returns and manage your self-employed financial status.

Don’t worry if you don’t get around to registering right away; you have until the 5th of October on your business’s second tax year to do so. Tax years run from the 6th of April until the 5th of April the following year, so if you begin trading in January, you must register by the 5th of October of the same year, as this would technically be your business’s second year.

This is the only step you must take when registering for self-employment as a sole trader. If you are setting up a limited company business, you’ll also need to follow the next step.

Step six(a): Register with companies house

This step only applies to those setting up a limited company. If you are establishing an LTD, you must register with Companies House. To do this, you must submit your requested business name along with all required information, which includes a memorandum of association and articles of association. These documents are essentially foundational rules that state how your business will be governed and who is currently involved with the business.

If you need help registering your company, Mint Formations offers expert support.

Step seven: Check the details

At this point, you’ve covered all the essential practices. You’ve formulated your self-employed business plan, researched your obligations and registered as self-employed. Now, it’s time to review everything and check the details.

Before you venture forward with your new business, we advise you to take the time to ensure the foundations you’ve laid are sturdy.

Double-check the information you’ve supplied to HMRC and Companies House. Ask a financial professional to check your accounting practices are ready and that you haven’t missed anything. Speak to a business advisor about your plan and strategy. It may sound unnecessary, especially when you want to get going, but consider this:

Roughly 20% of businesses fail after two years, while 45% will fail after just five. Much of this failure comes down to self-employed workers not being able to stick the landing after a strong start, and much of that is due to infrastructure issues. Get things right before going self-employed and starting your new business venture, and you’ll be more likely to succeed.

Do you want help getting all the information you need to start your business and become self-employed? Mint Formations offer a range of services designed to support your needs. Get in touch today to find out more!

The post How to become self-employed: step-by-step guide appeared first on Mint Formations Blog.

Regardless of the type of business you run or want, you’ll come across Companies House along the way. Before starting trading, you’ll need to register your company through its registration service. But Companies House services can be a bit intimidating — especially if it’s your first time using them. 

One of the biggest concerns for new businesses is that a lot of information used to register is publicly available. As a business owner, you’ll want to know what information is available to the public through Companies House searches. 

That’s why we’ve put together this comprehensive guide on all the publicly available information through Companies House. We’ve also included some tips on what you can do to protect your privacy. 

What is Companies House?

Before we jump into the specifics, it’s helpful to understand what Companies House is and what it does. 

Companies House is the UK’s company registrar. It’s a government agency that deals with the incorporation and registration of companies in the United Kingdom. Companies House is also responsible for maintaining the official records of companies, including:

• Financial statements 
• Details of directors and shareholders
• Annual accounts. 

(More on these later.)

If you want to set up a company in the UK, you’ll need to register it with Companies House. You can do this online, by post, or by using a company formations agent. Once your company is registered, you’ll need to regularly file certain documents with Companies House, such as your confirmation statements. 

You will also need to notify them of any changes to your company’s details, such as a change of address or the appointment of a new director.

Read our complete guide to Companies House. 

What businesses need to register with Companies House?

All public and private companies in the UK need to register with Companies House, including: 

• Private limited companies
• Public limited companies
• Limited liability partnerships. 

These companies must provide Companies House with a range of business information that we’ll dig into shortly. Most of the information provided is made available to the public for corporate transparency. 

Failure to comply with Companies House’s requirements can result in significant fines, so it’s essential to understand exactly what you need to do. The only businesses that do not need to register with Companies House are sole traders — but they still need to register with HMRC for tax. 

What is Companies House search service?

Companies House search service is a quick and easy way to access company information for any registered company in the UK. It’s a free service that lets anyone search for a company by name, location or date of incorporation. It’s also possible to search for companies that have been struck off the register. 

This service is available to anybody and can be used for a variety of purposes, including: 

• Researching competitors
• Find out key information about potential investments
• Confirming the legitimacy of a company.

The Companies House search service is a valuable tool for businesses, investors, journalists and members of the public. It’s a great way to learn more about a company before interacting with them. For businesses, it’s an excellent trust signal to potential investors or customers that your business.

What company details are available through the Companies House register?

Most people know that companies have to register with the government, but they might not be sure what information is available. Even if they do, the business terminology used by Companies House can be a bit overwhelming, especially as there’s so much information to understand. 

Whether you want to know what information about your business is on the register or you’re researching an existing company, we’re here to help. While it’s easy to find a list of the information available to the public on Companies House, it’s rare to find an explanation for what everything means. That’s why we’ve put together this comprehensive guide. Let’s get stuck in. 

Registered company name

A registered company name is the official name of your business. It’s the name that you use for legal and official purposes. You can choose any name for your company, as long as it’s not another registered name and doesn’t contain offensive words. Companies can operate under a trading name slightly different from their registered company name. For example, Mint Formations Ltd trades as Mint Formations. 

Find out more about how to choose an official company name. 

Company registration number

When registering a company in the UK, you’ll be given a company registration number (CRN). This will be a nine-digit number that’s unique to your company. It’s used by HMRC and Companies House to identify your business. You’ll need to use this on any official documents like company accounts. 

Registered office address

Your registered office address is the address you use to register your business with Companies House. The address appears on public documents, such as your company’s annual accounts. Your registered office address must be in the UK, but it doesn’t necessarily need to be where you operate. For example, if you work from home, you can choose to have a virtual office address to keep your home address private. 

Company type

When setting up a company, you must select a company type. This tells Companies House and HMRC what rules and regulations your business needs to follow. The most common companies are private limited companies (Ltd), public limited companies (plc) and sole traders. You also have the option of other business structures for charities, unlimited companies and partnerships, but these are less common. 

Nature of business activities (SIC Code)

In the UK, businesses are classified using the Standard Industrial Classification (SIC) system. This system is used to classify companies according to their principal business activities. For example, if you wanted to register a business that sells records and instruments through an Etsy store, your SIC code would be 47630. 

You can view a complete list of SIC codes here. 

Company status

Your company status is simply the current legal status of your business. For most companies, this won’t change very frequently as your business will be active. An active company is one that is currently trading. But if your business goes into administration or you choose to make your company dormant, it will reflect this. 

Date of incorporation

All UK companies must have a date of incorporation included in their articles of incorporation. This is simply the date the company officially came into existence. For businesses, the date of incorporation is crucial as it can determine the financial year-end for the company. 

Articles of incorporation

Your company’s articles of incorporation include your memorandum and articles of association. These set out the rules and regulations that govern how your company is run. They specify the rights and obligations of shareholders, directors and employees. They also outline how you’ll conduct company meetings and make business decisions. 

Details of current and resigned directors

For each company director, you’ll need to supply Companies House with their name, date of birth, nationality, correspondence address, and other personal information. Members of the public will be able to see all the information about your current and previous directors. 

Details of people with significant control (PSC)

Just as you provide information about your company’s directors, you need to supply Companies House with the same information about anybody with significant control of your company. PSCs are individuals who control or influence a company through shares, voting rights or appointments to the board of directors. The information you provide about your PSCs is publicly available. 

Details of current and past subscribers and members

A subscriber is anybody who owns shares in your company — also called a shareholder. A member — or guarantor — is someone who takes responsibility for paying back any debts your company can’t afford to pay. Personal details of both will be listed on Companies House, just like directors and PSCs. 

Previous company names

If you’ve changed your company name, your previous name will be available for the public to see on Companies House. The registrar service records previous company names so that anybody can see if a company has changed its name. Often, businesses change their names, and the availability of this information makes it easier for people to track them down. 

Filing deadlines

Every company must file certain documents with Companies House, each of which has a specific deadline published on the register. Companies House has different deadlines for different filings, so it’s a good idea to ensure you’re aware of each deadline. Your filing deadlines will be available on your company profile. 

Late filing history and penalties

Companies House sends late filing notices to companies that fail to file their annual accounts or confirmation statements on time. If your company ever received a late filing notice, it will be added to your company profile on Companies House. It’s a good idea to do everything you can to avoid late filing notices as potential clients and investors can view this as a sign of disorganisation. 

Insolvency information

The purpose of this insolvency information is to provide creditors and shareholders with transparency about the financial affairs of a company in insolvency proceedings. This includes details about the company’s assets, liabilities, and financial history. In some cases, the insolvency information may include details about the company’s directors and shareholders.

Statement of capital

A company’s statement of capital is a record of how much money the company has in share capital. This information is filed with Companies House, which calculates the company’s annual return. The statement of capital shows the total number of shares the company has issued and the value of each share.

Annual accounts

All limited companies in the UK have to file annual accounts at Companies House. This is a legal requirement, and failure to do so can result in fines and other penalties. The accounts give a snapshot of the company’s financial health and provide valuable information for stakeholders such as shareholders and creditors. The accounts must be filed within nine months of the end of the financial year, and a qualified accountant must sign them off.

Confirmation statements

Confirmation statements are documents that companies are required to file with Companies House. They provide information about a company’s shareholders, directors, and registered office. You must file confirmation statements at least once a year, and they can be filed more often if a company changes its shareholder structure or director lineup.

Companies House services to keep your personal details private

As you can see, most of the information available on Companies House is relatively generic. It allows anybody to get an accurate overview of your business quickly and easily. 

For the most part, business owners are happy to share this information openly. But one common cause for concern is the use of their home address. Many business owners are wary of sharing their home address so openly as it can leave them vulnerable to: 

• Cold calling
• Identity fraud
• Violence and intimidation.

For this reason, many company directors use a director’s service address. For a small yearly fee, directors can hide their residential address and use a prestigious London address for Companies House in its place. 

Many businesses also use a registered office address for their Companies House registration. This has become even more popular with the number of home-based businesses starting up since the pandemic. 

Ready to register your business with Companies House?

At Mint Formations, we can help you with every step of registering your company. From helping you put together your incorporation articles to providing you with a registered office address, we’re here to help. 

If you’re ready to register your business, explore our company formation packages today. We cater to all business structures, so whatever your business plan — we can help. If you have any questions, please contact the Mint Formations team, and we’ll be happy to help.

The post What information can you see in Companies House searches? appeared first on Mint Formations Blog.

But the good news is that it’s a step that helps protect you and your business in the long run. Becoming a limited company helps keep your business and personal tax separate as the business has its own legal identity. It also lets you claim tax relief on business expenses and gives you limited liability over any company debts.

Switch from sole trader to limited company today

Are you thinking of switching from sole trader to a limited company? If so, you’re in the right place. This guide will outline the steps you need to take to make the switch. We’ll also look at the benefits of registering a limited company and provide tips on making the process as smooth as possible. Find out how to make the switch now.

What’s the difference between a sole trader and a limited company?

When you start your own small business and become self-employed, you need to choose a company legal structure. While several options are available, most new companies begin as sole traders or limited companies. We’ve outlined the differences between the two below.

A sole trader is self-employed and runs their business alone without any employees. There’s no legal distinction between a sole trader and their business. While anyone can choose to be a sole trader, it’s a popular choice of legal structure for freelancers, tradespeople and gig economy workers.

Read our complete guide to becoming a sole trader.

Limited companies have different structures and obligations to sole traders or partnerships. They must register with Companies House — the UK’s official company records keeper and keep more detailed records. A limited company is a separate legal entity from its owner(s), which means directors have limited liability.

Discover everything you need to know about limited companies in our expert guide.

The benefits of changing from sole trader to limited company

Making the decision to change from sole trader to a limited company is a big one. It can be challenging for self-employed people to work out when the right time to make the change is. Maybe you’re making enough profit to make incorporation the best option, or perhaps you’re earning over the VAT threshold. Whatever your circumstances, you’re probably wondering if it’s better to stay a sole trader and not make the switch.

Staying a sole trader is definitely an option, but there are some significant benefits you might be missing out on. Let’s take a look at the benefits of making the switch.

Protect your business name

As a sole trader, your business name isn’t protected. Even if you’ve built a brand reputation and own the website domain, nothing stops someone from using your business name. When you become a limited company, you will register your business name with Companies House. Once you’ve registered your limited company, nobody else can use your business name.

Alongside protecting your company’s name, becoming limited can also save you money. If somebody else uses your name, you’ll need to spend time and money rebranding. Registering as a limited company can prevent you from starting your business from scratch. Use our company name checker tool to determine if your company name is available.

Better tax efficiency

Sole traders pay tax on all the money your business makes. Your profits are subject to both income tax and national insurance. If your business is successful, you’ll pay a lot more tax than necessary. Tax efficiency is one of the most significant advantages of switching from a sole trader to a limited company.

By registering a limited company, you can legally pay less tax. Limited companies do need to pay corporation tax which is 20%, but this is only on profits rather than the entire income. You can also take a salary and dividends from your business to save on income tax and national insurance payments. Plus, as a limited company, you can claim tax relief on business expenses which you cannot do as a sole trader.

Limited liability

As your company grows and becomes more successful, liability becomes a priority. As a sole trader, you are personally liable if your business makes a loss or if somebody makes a claim against your company. This means that you will need to pay from personal assets if anything goes wrong or get a bigger tax bill than expected.

If you choose to switch to a limited company, you won’t be personally liable for business losses or customer claims. This is why it’s essential to have a separate business bank account from your personal one to protect personal assets.

Improved credibility and reputation

When you start a business as a sole trader, there are specific rules about naming your business that include not using “limited” or “ltd”. While this might not seem like a big deal, having “ltd” in your business name and being on the Companies House register is a significant trust signal for consumers.

For potential customers, seeing that a business is registered as limited reassures them that your business is legitimate and trustworthy. You can build your credibility and reputation with new and existing customers by registering your business as limited.

Better borrowing power and investor opportunities

Just as registering as a limited company adds credibility to your business, it opens up new funding opportunities. Being a limited company will increase your chances of finding investors. Going limited implies financial success, and investors will be putting their money into a company rather than an individual.

It will put you in better stead for business loans from banks alongside investors. While you can get business loans as a sole trader, the process is much easier if you are registered with Companies House. Easier access to loans and investment opportunities will make growing your business easier and faster.

Changing from sole trader to limited company in 4 Steps

Making the switch to a limited company from a sole trader is quick and easy. But before you decide to change from sole trader to a limited company, you should seek professional advice from an accountant or financial adviser.

Here are the five steps to becoming a limited company:

Choose a company name

Before registering your limited company, you’ll need to choose a business name. You may be able to use the same name you’ve traded under as a sole trader, but it’s worth checking. You can use a company name checker to see if it’s available.

Alongside checking availability, you also need to ensure your company name follows the rules set by Companies House:

1. Your name must end in limited
2. You cannot copy an existing business’s name
3. Your name cannot be too similar to another business’s name
4. Your business name cannot be offensive
5. You cannot suggest a connection with authorities without permission.

Register with Companies House

You can register your limited company once your business name is nailed down. You can do this through Companies House directly, but most new businesses use a company formations agent like Mint Formations. The process is quick and easy, with most applications approved within 24 hours.

To register your limited company, you’ll need:

• A registered office address
• A unique business name
• One director
• One shareholder
• A Standard Industrial Classification (SIC) code.

If you are not planning on bringing on any other directors or shareholders, you can take both positions yourself. It’s also worth bearing in mind that you can use a virtual office address or a virtual director’s address. Using virtual addresses will keep your home address private from the public.

Inform HMRC of your legal structure change

Once your new limited company has been incorporated, you’ll need to let HM Revenue and Customs know that you are stopping trading as a sole trader. This is a quick process and simply requires you to fill out an online form with the following information:

• The date you stopped trading
• Your Unique Taxpayer Reference (UTR)
• Name
• Date of birth
• National insurance number
• Address.

At the end of the tax year, you’ll need to submit a final self-assessment tax return by January 31st.

Set up a business bank account for your company

At this stage, you don’t technically need to do anything more. But it’s a good idea to set up a business bank account for your new limited company. Businesses aren’t legally required to set up business bank accounts, but it’s a great way to keep your business and personal finances separate.

The benefits of a business bank account include:

• Track business transactions easily
• Process salary payments quickly
• Receive credit and debit card payments
• Use and receive foreign currencies
• Carry out credit checks.

Almost every major bank offers business bank accounts, so it’s worth doing your research before opening one. At Mint Formations, we can help you set up a business account with various banks, including Lloyds, Barclays, WorldPay and Cardone.

If you’re looking to change from a sole trader to a limited company, the easiest way to do it is with the help of Mint Formations. We can advise on the process and ensure it’s the right decision for you. After that, we’ll handle getting your limited company registered.

Register your limited company with Mint Formations today for as little as £12.99. We have 20+ years of experience registering businesses and will handle everything for you. Get in touch if you have any questions about forming your company.

The post How to change from sole trader to limited company appeared first on Mint Formations Blog.

With everything else you need to do to start your own business, the prospect of creating two very official documents can be pretty daunting. But the process of creating a company memorandum and articles of association isn’t as complicated as it sounds. 

Companies House has over four million company registrations and more than 500,000 new businesses registering every year. Due to the volume of applications, the process is as simple as possible to help companies register quickly.

At Mint Formations, we help businesses create and submit these documents every day. So we’ve put together a guide for you to find out exactly what they are, when you need them and how to create them. 

Overview:  Company memorandum and articles of association

In the UK, it’s a legal requirement for companies to have both a memorandum and articles of association. Businesses produce these documents to complete their formation and registration with Companies House. 

Before we jump into exactly what these documents consist of and when you’ll need them, it’s helpful to have a basic understanding of them: 

• Your memorandum of association will be a legal statement outlining the details of your company’s founders and their intentions to incorporate the business.
• Your articles of association are guidelines that show how you will run your company. Companies House provides template articles for business owners to create their own articles. Businesses personalise the document to devise their own regulations. 

Now that you’ve got a basic understanding of company memorandums and articles of association, we can dive a little deeper into what they involve and how to create them.

What is a company memorandum?

Of the two documents, the company memorandum is much more straightforward to complete. As the document is simply a statement of intent from your company’s founders to form or incorporate your business, it requires less information. Your memorandum should include these details: 

• Your registered company name
• The date of subscription
• The legal act your company is incorporated under (Companies Act 2006)
• If your company is limited by shares or guarantee
• The name of all subscribers (founders and shareholders)

Before the 2006 Companies Act, the memorandum included other information like provisions, but they’re included in the articles of association now. 

By completing and signing the memorandum, the subscribers agree to become the first members of a company under the Companies Act 2006 and agree to subscribe to at least one share. 

Conveniently, a company memorandum of association must be in a form prescribed and supplied by Companies House.  Once you have completed the form, you need to send it to Companies House with your application to register the company alongside the articles of association. 

Once you have completed your registration and your business is set up, you cannot alter the name of subscribers on your memorandum as it is a binding legal document. 

Does a company need a memorandum of association?

Unless you plan on running an unincorporated business, you will need to produce both a memorandum and articles of association. 

It’s a legal requirement for all limited UK companies to have a memorandum of association. You will submit it to Companies House with your application and articles of association to register your company. Without these documents, you won’t be able to register your business. 

What are articles of association?

Your articles of association will take longer to put together than your memorandum as they involve more than names and signatures. Articles of association document your company’s constitution and form a guide and rulebook that outlines how you will manage your business. The areas that the articles cover include: 

• Member’s rights, liability and duties
• Directors’ power and responsibilities
• Distribution of profits
• Appointment and removal of directors
• Decision making
• Administrative matters.

While you can choose to create your own articles of association, Companies House provides model articles as a default that many small businesses use. The template is easy to adapt for limited companies and can remove much of the stress and hassle from doing it yourself.

But if your company has more than one share class or multiple shareholders, it may be worth considering creating your own articles to make sure that the document reflects shareholders’ agreements and is tailored to the needs of your business. If you’re planning on creating your own articles, it’s wise to seek legal advice to avoid potential errors that can slow down your company registration. 

Unlike the memorandum, you can alter your articles of association at any time, but any changes made must have a 75% majority in favour. You’ll need to send an updated version of the articles to Companies House within 15 days. 

What are entrenched articles of association?

You probably won’t need to include entrenched provisions in your articles of association. Still, it’s a good idea to be aware of them, just in case you need them. 

Entrenched provisions allow your company to adopt special clauses in the articles that make it more difficult to pass a resolution. Usually, to pass a resolution, you must have a majority vote in favour of it. Entrenched provisions mean that you must complete extra procedures before anything can pass.

Entrenched provisions were part of the Companies Act 2006. The act stipulates that they can only be added during formation or through an amendment that all company members agree with. 

If you’re looking to start your limited company with only a single shareholder, then it’s unlikely that you’ll need to include entrenched provisions. But if you do want to adopt them later, you’ll need to notify Companies House within 15 days of the amendment and include any revised articles. 

How to submit your company memorandum

If you’re looking to register your company with Companies House, you will need to submit your memorandum and articles of association with your registration. There are a few options available to do this: 

• Online
• Post
• Via a company formations agent

If you decide to register your company online through Companies House, you’ll need to adopt the model articles supplied and submit your memorandum online.

If you’re looking to create bespoke articles, you’ll need to submit your documents by post with an application form. However, if you decide to use the model articles, you do not need to include a copy with your application. 

A company formations agent will create your documents and submit them to Companies House for you. This can take the hassle and stress out of the process, letting you focus on what matters to your business.  

Need a hand submitting your company memorandum and articles of association? At Mint Formations, our bespoke service takes care of creating and submitting your documents so you can focus on your business.

The post What are a company’s memorandum and articles of association? appeared first on Mint Formations Blog.

Between March 2019 and 2020, the total register size of Companies House had increased by 3.5%, taking it to 4,350,913 companies in total. Because so many companies are registering, the process should be as straightforward as possible, but it’s easy to get bogged down by the requirements and lose yourself in the process. 

Luckily, here at Mint Formations, we’re experts in registering businesses through Companies House and guiding companies through the processes needed to get their companies registered. So we’ve put together this guide so that you can find out exactly what you need to know to get yours up and running. 

What Is Companies House?

Companies House is part of HM Revenues and Customs; it’s a publicly owned, Government authority that the Department of Business, Energy and Industrial Strategy manages.

Its primary purpose is to regulate and incorporate limited companies and limited liability partnerships (LLPs) in the UK. It’s also responsible for inspecting and maintaining information about these businesses. 

Companies House focuses on the incorporation and dissolution of UK companies, but it is also responsible for storing accurate information on limited companies in the UK. These records include business information such as directors names, addresses and shareholders. All of the data registered with Companies House is publicly displayed and available to the general public.

Who needs to register with Companies House?

Companies House is responsible for the approval of the incorporation of limited companies. Businesses can register online, by post or through a company formations agency. 

Not all businesses need to register as Companies House only deals with limited companies. So if you are a self-employed sole trader, you won’t need to register. 

The types of businesses that do need to register include: 

• Private limited companies
• Private unlimited companies
• Public limited companies
• Limited liability partnerships
• Limited partnerships
• International companies.

How to register with Companies House in 7 steps

Registering with Companies House is a relatively simple process in theory, but we’ve split it up into seven steps to make it even easier. 

Step 1 — Is a limited company right for you?

It’s worth checking to make sure that setting up a limited company is the right choice for your business, as the way you set up your company will affect how you pay tax and the funding available to you. If you’re not sure that a limited company is right for you, you can consider becoming: 

• A sole trader
• A business partnership
• A social enterprise
• An unincorporated association. 

Step 2 — Choose or check your business name

Once you’d decided the structure of your business, you’ll need to choose a name. If you’ve already got a business name, you’ll have to check that it doesn’t break any of the following rules: 

• Your name can’t be the same as an already registered business.
• Your name cannot be marginally different to an existing business name
• It cannot be offensive or inappropriate.

If you don’t check that your business name follows these rules and go ahead with the name, you may breach a trademark and be required to change your business name and even pay damages. 

One of the easiest ways to check if your potential business name is already in use is to use our advanced name searcher, which scours through records to ensure that your business name is good to go. 

Step 3 — Pick your company directors and secretary

To register your company, you’ll need to appoint a director and, although not required for registration, it’s a good idea to appoint a company secretary as well. 

Directors of limited companies are responsible for: 

• Keeping company records and reporting changes
• Filing tax returns and accounts
• Paying Corporation Tax
• Following your company’s rules as set out in the articles of association.

If you choose to be your company director, don’t panic if accounting isn’t your strongest skill as you can hire other people to manage your accounts. But you’ll still be legally responsible for all company records and accounts. It’s good to bear in mind that if a director does not meet their responsibilities, they can be fined, disqualified and potentially prosecuted. 

Once you’ve decided on your director(s), then it’s wise to appoint a company secretary as well. A company secretary is responsible for ensuring that the business is compliant with the Companies Act, 2006. Their responsibilities include: 

• Making sure the company’s register and records are up to date
• Establishing the business’s registered office
• Arranging board meeting and taking minutes
• Informing HMRC and Companies House of any relevant changes

You’re not required to have a company secretary, but it’s definitely advantageous.

Step 4 — Choose your shareholders or guarantors

To register your business with Companies House, you’ll need to choose at least one shareholder or guarantor. A shareholder is the owner of a company limited by its shares, whereas a guarantor is the owner of a company limited by guarantee.

Shareholders and guarantors are responsible for contributing to any business debts, but there’s a significant difference between the two. Shareholders are only liable for debts up to the value of their unpaid shares, whereas guarantors will pay a fixed sum towards debts. 

Another difference is that shareholders will usually take a percentage of the profit calculated by the value of their shares. In contrast, most guarantors won’t take profit for themselves as they are typically associated with non-profit organisations.

Step 5 — Document how you will run your company

To get your business registered, you’re going to need to produce both a memorandum and articles of association. These instantly sound a bit intimidating, but they’re essentially documents that state how you plan to run your business and who will be involved. 

The memorandum contains all of the names of subscribers (the founders of the business and shareholders). Memorandums follow a government-supplied template and must include: 

• Company name
• Incorporation Date
• Type of company
• Act under which the company is registered
• Subscribers names and signatures
• Shareholders and guarantors limited liability.

The articles of association set out the rules that will decide how you will manage the company. Usually, this will include: 

• Share and the distribution of shares and dividends
• Capitalisation of profits
• Voting rights
• Shareholders
• Directors’ responsibility, power, indemnity and insurance.

The articles of association aren’t permanent and can be changed, but you will need to notify Companies House of any changes.

Step 6 – Find out what records you need to keep

Limited companies are required to keep certain records by law. There are two categories of documents you’ll need to keep: company records and financial records.

Your company records must include: 

• Details of directors, shareholders and secretaries
• Shareholder vote results and resolutions
• Loan repayment promises and their recipients
• Promises of payments if something goes wrong and the company is at fault.
• Transaction history of shares
• Any loan and mortgage that is secured against company assets

Your financial and accounting records must include: 

• All money spent and received includes grants.
• Asset details 
• All debts that the company owes
• Any stock the company owns at the end of the financial year
• Stocktakings
• Bought and sold goods and who they were sold to (except retail)
  

You must keep your records diligently, as a failure to do so can result in a fine of £3000 from HMRC and even disqualification as a company director. 

All records need to be kept for a minimum of six years (some need to be kept longer). If any of your records are destroyed, lost or stolen, then you must inform HMRC immediately, include the information in your tax return and do your best to recreate the documents. 

Step 7 — Register with Companies House

The final step in the process is to file your registration with Companies House. To do this, you’ll need to register an official address and choose a SIC code. Your SIC code identifies what your business does.

Once you have registered your business address with a SIC code, you’ll need to provide three pieces of information about yourself and any shareholders or guarantors. This information can be: 

• Town of birth
• Mother’s maiden name
• Telephone number
• Passport number
• National Insurance number.

Once you have supplied this information, the registration will be a step-by-step process that is easy to follow. Providing you have completed the form correctly, your business should appear on the register in about 24 hours. 

How much does Companies House registration cost?

The cost of registering your business with Companies House varies depending on the way you submit your application. It also changes depending on whether you complete the application yourself or use a company formations agent. 

If you complete the registration process yourself, it costs £12 online and can be paid by debit or credit card and usually takes 24 hours. The fee increases to £40 if you decided to apply by post, but it can take up to 10 days to process.  If you’re desperate to get your application registered on the same day, you’ll need to pay £100 and complete your application by 3 pm. 

How difficult is registering with Companies House?

In theory, registering with Companies House is a straightforward process. But in reality, registrations are often rejected or delayed for minor oversights or errors in the application. 

Rejected registrations are not uncommon, and reasons for rejection can include: 

• Your company name is already taken or too similar to an existing business name.
• The company name is considered inappropriate or offensive
• You’ve missed some vital information
• Incorrect article of association or memorandum
• Incorrect share structure

Often registrations can be rejected for a simple mistake like an incorrect date of birth or address, which means you will fail the anti-money laundering checks and need to go through the whole process again. 

Do I have to register with Companies House myself?

If you’re feeling a bit overwhelmed by everything you need to do to get your company registered, you’re not alone. The process of registering your business is theoretically straightforward, but it can quickly become very complicated. But you don’t have to do it all yourself. 

One of the best ways to ensure that your registration goes off without a hitch is to use a company formation agency authorised by Companies House, like Mint Formations. Agencies like ours will make sure that you avoid disappointment and ensure a successful company registration. 

Need some help getting your business registered with Companies House? Get in touch with Mint Formations today, and we can make sure your application is successful. Our company formation packages start from as little as £12.99.

The post Register with Companies House: A complete guide appeared first on Mint Formations Blog.

The biggest trend in the property market in recent years is the huge and sudden shift in people buying properties within companies. It used to be the case that only a tiny minority of property investors would buy a house through a limited company, but with changes to mortgage tax relief over the past few years, that number has grown substantially. 

The main reason to register a company to buy a property is tax efficiency. If you are a higher-rate taxpayer renting out a property as a private individual, you will pay up to 45% of your rental income in tax. As a limited company, you will only pay corporation tax at 19%. 

Put in simple terms, it sounds like a no-brainer. However, as with any big financial decision, it is important to look at your long-term goals as an individual and as a company to work out if registering a company to buy a property — or buying a property through an existing company — is the right move for you. 

Looking to register a company to buy a property? Find out if you’re trader or an investor

If you are buying property to renovate, rent out and then sell on at a profit, you are probably a trader rather than an investor. In this case, you should definitely consider setting up a property company. Otherwise, you will need to pay capital gains tax (CGT) on the profits from each property you sell. 

If this isn’t your plan, you are an investor and will need to weigh up all the pros and cons of buying through a limited company or operating as a private individual.

What does setting up a limited company involve?

To set up a limited company, you will need to register with Companies House. Your company must have at least one director and at least one shareholder, but these can be the same person.

You will need a name for your company and to decide whether you are the only shareholder or whether you wish to extend share ownership to someone else, such as your partner. You will also need a company address. You can use your own address, or if you have an accountant, you can use their office address. You must register your company as an employer with HMRC, even if you are only paying yourself as a director.

Alternatively, you could register your company with Mint Formations, and let us take all the hassle involved with forming a company off of your shoulders. 

Advantages of buying a property through a company

From a purely financial perspective, there are three key advantages of holding property as a company rather than as an individual:

Tax benefits on profits

If you own a property in your own name, the profits you make from renting it out will be added to your other earnings — your salary, for example — and taxed as income tax. However, if you hold it within a company, the profits will be liable for corporation tax instead. The rate of corporation tax tends to be around half of the higher rate of income tax, which is an enormous saving. You will still be taxed on the dividends if you take profits out of the company, but there’s flexibility here.

Tax benefits on mortgage interest

As of April 2020, mortgage interest is no longer an allowable expense for individual property investors, but it will continue to be allowable for companies that hold property. This will mean that, if you are a higher-rate taxpayer and use mortgages to buy property, your tax bill will be higher if you buy properties in your own name. Savings can be made by buying through a limited company.

Inheritance tax benefit

Buying a house as a limited company could be a way of minimising the inheritance tax paid by your family members. You may be able to do this by making them shareholders in your limited company, but it’s worth seeking further advice on this.

Disadvantages of buying a property through a company

While the tax advantages of setting up a limited company make it sound like a good idea, there are some things you should bear in mind first.

There are costs associated with running a limited company, and it may take up more of your time than managing a property as a private individual. You will be required to prepare detailed accounts, which may involve paying professional fees to accountants and lawyers. You may also struggle to get as favourable a buy-to-let mortgage rate as those available to personal borrowers.

Switching property to a company

The transfer of existing properties into a company would be treated as a sale by you to the company, and you would be liable to pay capital gains tax. You might also face a stamp-duty charge for any property over the sum of £125,000. This could make the switch very expensive. It is generally advised to retain existing properties in personal ownership and buy any future properties via a company.

Mint Formations is an expert in company formation. Register your company with us today to take the first step in buying your perfect property.

The post How to register a company to buy a property: An easy guide appeared first on Mint Formations Blog.

Incorporation is a legal process involving the registration and formation of a limited company. By law, a limited company is a business entity that is separate from its owners. You can run a business enterprise without having a limited company by becoming self-employed, but you are not a legally-defined company until you incorporate your business and give it a registered name. If you don’t incorporate your business as a limited company, you as the individual are the business.

Why incorporate a business?

By incorporating your business, you establish the company as a registered corporation. In doing so, you can access several important business management tools and processes not available to sole-trader business owners. Through incorporation, you create a limited liability organisation that can employ people, make its own tax payments, have directors, shareholders and lots other benefits.

Click here to learn more about the advantages of limited companies!

What to know about incorporation

If you want to operate a limited company, you must incorporate it through Companies House. This is required by law, as part of the Companies Act 2006. Your business can be brand new, or it can have existed before as part of a self-employed enterprise or partnership.

You will find incorporation occurs in most economies around the world in some form. Traditionally, an incorporated business receives the identifier of limited, LTD or Inc, but it doesn’t have to take this title. Often, a business will be incorporated using a suffix such as Inc, that is subsequently dropped as part of branding and marketing.

For example, the incorporation of tech giant Apple is under Apple Inc, while rival Microsoft is actually registered as an incorporated business, Microsoft Corporation.

How do you incorporate a business?

Anyone can incorporate a business. Incorporation occurs through Companies House, the official government department that manages the formation and dissolution of companies, as well as keeping records of active incorporated businesses.

To incorporate your business, you must register a company name, alongside who the owner/owners of the business will be, and a series of documents of formation that provide the extra details like rules of operation.

Registration is relatively straightforward if you know what to do. If completed properly the first time around, you could see the incorporation of your business within a few days of submission.

Want in-depth advice on how to open an LTD company? Read our blog!

Incorporation vs Corporation: What’s the difference?

When you are incorporated, you become a corporation. Incorporation is the legal process of becoming a corporate entity, while a corporation is a business. These terms are related, but they are not counters or opposites or even different types of business.

An example of incorporation

In the early 1970s, a young Steve Jobs met with a young Steve Wozniak. They sold a modest amount of their new telephone inventions as self-employed individuals, splitting the profits between themselves. A few years later, the pair reconnected on a new project, after Wozniak revealed he’d been developing his own computer.

Jobs was impressed with the concept and convinced Wozniak they should sell the computer as a product. This time, they decided to make their business official. Instead of just selling products under their own name, they’d start a company and branded the products through the company.

In 1976, Steve Jobs and Steve Wozniak, along with Ronald Wayne, incorporated their business into Apple Inc.

There is a lot of fanfare around the legendary technology company today, but at the time this was a very simple act. The big names behind this historic event make it seem all the more impressive, but if the computers hadn’t become the success they are today, then this act of formation still would have occurred.

Incorporation can be the humble beginnings of an epic rise to economic dominance, or it can simply be one or more people starting a registered organisation. Replace Jobs and Wozniak with a dog walker and dog groomer who come together and incorporate their business into a doggy care service and, as far as incorporation goes, the result is the same — a newly registered company.

Mint Formations are your experts in the incorporation of British businesses. Contact our team today to discuss your formation needs!

The post What is incorporation? The definition of incorporation appeared first on Mint Formations Blog.