Nearly 6 million businesses are operating in the UK; almost one business to every ten people living in Britain. That means there are a lot of private enterprises running across the country, yet despite the vast numbers, each has their unique selling points, customers and culture. But while many aspects of a company separate it from even its closest of competitors, one thing is universal amongst all UK businesses:

They all have ties to Companies House.

If you want to start a company in Britain, Companies House is an essential organisation to work with. Without it, you cannot start a limited business. You can go self-employed, and act as a sole trader without Companies House, but the moment you decide you want to build a brand and a company, you’ll need to get Companies House involved.

But why?

To answer this question, we first have to ask: what is Companies House?

What Is Companies House?

Companies House is an organisation established under HMRC — Her Majesty’s Revenue and Customs. It is a publicly-owned, Government-funded and managed authority that falls under the control of the Department for Business, Energy and Industrial Strategy. Companies House is an official executive agency that has a series of powers when it comes to the registration and dissolution of private limited companies.

What Does Companies House Do?

Companies House primarily focuses on the incorporation and dissolution of UK businesses:

  • Incorporation — When you want to establish a limited company, you must go to Companies House to register your company name.
  • Dissolution — If for whatever reason, you decide to close your business, you must return to Companies House to have your business recorded as closed.

However, Companies House doesn’t just take part in the active processes of starting and closing businesses. It is also responsible for storing accurate information on all limited companies operating in the UK. This means Companies House records all relevant business information — such as Directors, addresses, shareholders, etc. — and update this information whenever necessary.

For Companies House to update this information, it must be provided to them by a member of the business. Companies House does not automatically obtain any data on your company or source it from other locations. All information about your business must be supplied directly to Companies House from you.

Why Does Companies House Register Your Business?

Companies House exists to support business owners, the business community, the Government and the general public.

They do this in several ways.

The first is through the simple registration of information. When you register your business, you afford yourself a level of protection and ownership. You make your business a legal entity that has a separate status and rights. For example, once you register your business under your name, nobody can claim it is their business. You also claim rights to the company name, which means other businesses cannot operate under your brand.

By ensuring every business registers with Companies House — a trusted authority — there can also be certain assurances made as to the genuine nature of incorporated companies. Anyone can look up a business, see who owns it and look into its history. This assurance comes from a guarantee that appointed individuals can shoulder responsibility for any wrongdoing. You cannot register a UK business with Companies House unless you file official documents and meet certain criteria, which are checked manually before approval.

Through the maintenance of records, the Government can also monitor UK businesses and gather statistics on the current state of markets and the economy in general. Companies House can see what kind of businesses are running, in what industries, with which directors, and so on.

 

Why Is Companies House Important?

Without Companies House, there would be no registration process for businesses. We would have no records of UK businesses operating in the country and could not prove ownership of brands. Companies House is an essential part of the business community, as it acts as a central hub for all company details. It provides necessary protection and information that results in a stable and fair environment of business operation.

 

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

 

 

Want to register your UK limited company today?


Raj co-founded Mint Formations with business partner Andy Tree in 2017. Mint formations is established to nurture small UK businesses and enable exciting new opportunities for quick growth. As a successful entrepreneur, Raj knows how to start and run a business. He currently resides as a board member of seven successful companies across the world. He is best known for founding Integra Global Solutions, specialists in robotics, automation, and business process optimisation.

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