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.

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.

In this blog let’s see the some of the reasons why Companies House rejects applications, and how to avoid rejections.

9 reasons why Companies House reject applications:

1. Similar Names
2. Sensitive & Offensive Names
3. Errors/Missing – Authentication Questions
4. Registered Office Address
5. Non-Residential Address
6. Nationality Input
7. Missing PSC
8. Repeated Appointment
9. 243 Exemption

Similar names:

You cannot choose a company that’s too similar to an existing company, and in such a case your submission will not be accepted. If you get this error message from companies House you should choose a different name and resubmit it for approval.

Tip: To avoid rejection pay attention to the message companies with similar names will generally not be accepted even if the other company is LLC and you are registering a Limited by Shares (Commonly known as Limited Company) unless you either get permission from the existing company.

Note: If you own both the companies you can still register too similar names by providing documents to prove that you own the already existing company.

Sensitive & offensive names:

In general company names that sound like associated to the Royal Family or UK govt (The King’s Council Limited for example) for instance, will not be permitted and Companies House will always reject such submission.

Your company name cannot include any offensive terms, just make sure you avoid such terms to avoid rejection.

Errors/Missing – Authentication questions:

This is one of those rare careless error caused during the registration. The form will require you to answer security questions, just like any other secure registration process. If you missed to answer these before submission or answered them incorrectly the submission will get rejected and you will have to correct these mistakes and resubmit it again.

Tip: You can any select 3 Questions from the given options, just make sure you don’t end up answering your “Passport Number” for the question “What’ your Mom’s Maiden name? (sounds silly, but these things happen)

Registered office address:

You can register a company from both Scotland or from England & Wales but just make sure that you will need to provide a valid address that’s from the region you are registering your company for. You cannot register a company in Scotland and provide a registered office address in London. This will always get rejected by Companies House.

Non-residential address:

Although is a very rare rejection case, this does happen sometimes when your director’s residential address is not from a residential area. Although you can use your home address as your registered office address, you cannot use your office address as the director’s residential address.

Tip: If you are concerned about address protection, your residential address is not revealed on the public records. But your director’s service address is always available in the public domain if you are concerned about privacy you can use our director’s service address to protect your address.

Nationality input:

This one is a rare case when compared to the rest, but it does happen sometimes. You cannot add the nationality your officer (director or shareholder) manually, and doing so could get your company rejected if the entry is not valid.

To avoid rejection, you should make select the nationality of your new appointment from the drop-down list.

Missing PSC:

Errors with PSC powers is one of the common errors during submission. It’s mandatory for a UK company to declare PSC powers of the shareholders.

Note: Any shareholder with over 25% shares is considered as PSCs.

Tip: Consult an experienced accountant if you have doubts about PSC powers. At Mint we provide information on PSC and other legal registration related doubts.

Repeated appointment:

Once again this is a rare submission error, but it does happen at times. You don’t have to appoint your self 2 times to make you as both the director and the shareholder. Reviewing your submission once more before submission will help you avoid rejection in most case.

243 Exemption:

Option S243 in the director’s appointment selection is not applicable to most directors. It’s exclusively for those director’s who are provided with an exemption from adding their residential address. Avoid it unless it’s applicable to you.

Avoid risk by going through Mint Formations, most of our company formation packages include a pre-submission review to help you avoid rejection.

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