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.