In the United Kingdom, a certificate of incorporation is an official legal document that confirms the formation of a limited company. It provides vital information about the company, including its name, registration number, date of incorporation, and its legal status. Obtaining a certificate of incorporation is a crucial step for any business owner who wishes to form a limited company in the UK. In this blog post, we will take a closer look at what a UK company certificate of incorporation is, why it’s essential, and when it might be required for business purposes.

 

What is a UK company certificate of incorporation?

A certificate of incorporation is a legal document issued by Companies House, the official government registrar of companies in the UK. It confirms that a new company has been registered and recognized by law. The certificate includes essential information about the company, such as its name, registered office address, company number, and date of incorporation. It also states the company’s legal status, whether it’s a private limited company (Ltd), a public limited company (PLC), a limited liability partnership (LLP), or another type of legal entity.

Why is a certificate of incorporation essential?

Obtaining a certificate of incorporation is a necessary step for any business owner who wants to form a limited company in the UK. It serves as proof that the company exists and is legally recognized by the UK government. Without this document, a company cannot conduct business or enter into legal contracts.

In addition to serving as proof of the company’s existence, a certificate of incorporation also provides essential information that potential investors, creditors, and customers may want to know about the company. It gives information about the company’s legal status, its date of incorporation, and the names of its directors and shareholders. This information is crucial for anyone who wants to do business with the company or invest in it.

When might a UK company certificate of incorporation be required for business purposes?

There are several situations where a UK company certificate of incorporation may be required for business purposes. Let’s take a closer look at some of the most common scenarios:

Opening a bank account:

If a company wants to open a bank account, it will typically need to provide a certificate of incorporation to the bank as proof that the company exists and is legally recognized. This is essential because banks are required by law to verify the identity and legal status of their customers.

Applying for credit:

When a company applies for credit, such as a business loan or credit line, lenders will typically require a certificate of incorporation as part of their due diligence process. This helps them to verify the legal status of the company and assess its creditworthiness.

Entering into contracts:

When a company enters into a contract, it’s essential that both parties understand the legal status of the company. Providing a certificate of incorporation to the other party can help to establish the company’s legal existence and status.

Applying for licenses and permits:

Many businesses require licenses and permits to operate legally in the UK. To apply for these licenses and permits, the company may need to provide a certificate of incorporation to the relevant regulatory body as proof of its legal status.

Hiring employees:

When a company hires employees, it’s essential that it has a legal status and can provide proof of its existence. A certificate of incorporation can help to establish this and is often required by employers when conducting pre-employment checks.

Conclusion

In summary, a UK company certificate of incorporation is an essential legal document that confirms the formation of a limited company. It provides vital information about the company, including its name, registration number, date of incorporation, and legal status. Obtaining a certificate of incorporation is a crucial step for any business owner who wishes to form a limited company in the UK.

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Starting and running a business can be an exciting and rewarding experience, but it can also be challenging and risky. One way to mitigate some of these risks is to operate as a limited company. A limited company is a legal entity that is separate from its owners and directors, and it can provide a number of benefits for businesses in the United Kingdom.

Limited Liability:

With any business comes risk, sometimes substantially elevated risk. Using a limited company can help mitigate this risk by limiting financial risk to the company. Normally, company officers or shareholders are not held liable for any company debt, fines, or legal suits as long as the business has been correctly operated in good faith. This benefit can give a great amount of peace of mind to any business owner, new or existing.
Low Set-Up Costs: In the UK, limited companies are very easy to establish with a very low cost to do so. You can set up a limited company in some cases the same working day for as little as £10.00 or even for free!

Established Reputation:

Using a limited company rather than being set up as a sole trader can provide a portrayal of being more established and accountable. All limited companies are registered at Companies House, and information on all businesses is viewable on the company register. The register shows the Registered Office of the company, who owns the business, and who is responsible for running the business. Using a registered office service can give your business an extra reputation boost and avoid using your private home address on the register.

Your Business Name:

Every registered company name is unique, meaning once registered, nobody else can register a business with the same name while your company remains registered. While this is not like a registered trademark and does not offer the same protection, it does ensure no other business can register and copy your official business name.

Tax Efficiency:

Limited companies can be a great way to become very tax efficient in your business and investment practices. While we are not able to cover this in detail here, as there are so many options to consider, some of the main benefits include taking profits as a mix of salary and dividends, which can be tax efficient for business owners.

Privacy Benefits of Using a Virtual Office:

In addition to the established reputation and other benefits of using a registered office service, a virtual office can also provide privacy benefits. A virtual office allows you to use a professional business address as your registered office, rather than your personal home address. This can be especially useful if you want to keep your personal home address away from public records and databases.

It’s important to note that while operating as a limited company and using a virtual office service can provide many benefits, it’s always a good idea to seek professional advice to determine what is best for your specific business needs.

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National
Forwarding

£20 +VAT per year £24 inc.VAT
  • Included One Year Service ?
    The yearly cost covers using our office address for your company’s Registered Address at Companies House. 365 Days cover starting from the day of purchase.
  • Included Forwarding Of Statutory Mail ?
    Physical forwarding of any mail sent from Companies House or HM Revenue & Customs addressed to your Company. We forward the official letters the same working day to your confidential UK mailing address, 2nd Class Royal Mail at no extra cost to you!
  • Included Instant Set Up ?
    Ready to use right away!
  • Included Optional Scan & Email ?
    If you prefer we can open, scan and then email your letters the same working day they arrive. Original documents are held and available on request for 10 working days before being securely destroyed.
  • Included Directors Service Address ?
    This service includes using our address for one company officer, they can be the Director, Secretary, Shareholder or Person of Significant Control (PSC). This cover is provided per person, regardless of the amount of positions they hold within the business.
  • Included Additional Directors * ?
    The First is Included for Free! Additional Directors, Secretary's, Shareholders or Person of Significant Control (PSC) can be purchased for £5.00+VAT each, per year, as an Add-On. Please email reception for this if required after signing up.


International
Forwarding

£50 +VAT per year £60 inc.VAT
  • Included One Year Service ?
    The yearly cost covers using our office address for your company’s Registered Address at Companies House. 365 Days cover starting from the day of purchase.
  • Included Forwarding Of Statutory Mail ?
    Physical forwarding of any mail sent from Companies House or HM Revenue & Customs addressed to your Company. We forward the official letters the same working day to your confidential International mailing address, Standard Air Mail at no extra cost to you!
  • Included Instant Set Up ?
    Ready to use right away.
  • Included Optional Scan & Email ?
    If you prefer we can open, scan and then email your letters the same working day they arrive. Original documents are held and available on request for 10 working days before being securely destroyed.
  • Included Directors Service Address ?
    This service includes using our address for up to two company officers, they can be Director, Secretary, Shareholder or Person of Significant Control (PSC). This cover is provided per person, regardless of the amount of positions they hold within the business.
  • Included Additional Directors * ?
    The First is Included for Free! Additional Directors, Secretary's, Shareholders or Person of Significant Control (PSC) can be purchased for £5.00+VAT each, per year, as an Add-On. Please email reception for this if required after signing up.

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When incorporating a company in the UK, registering a business for VAT, or opening a business banking account, and other registration processes you have to choose at least one SIC code, and sometimes more. SIC codes make up a classification system that tells Companies House and other institutions in broad terms what the company does. It is a structured system that promotes uniformity in recording companies’ main business activities.

What is a SIC code?

A Standard Industrial Classification code or SIC code is a 5-digit code that classifies a business’s main area of economic activity and is used for sorting companies into categories. It must be chosen from an official list of SIC codes. The classification of each company is available for anyone to view on the public record.

SIC codes are grouped into sections of categories. The sections are alphabetical starting with Section A. Each section covers a pretty wide but related list of activities, for example Section A is Agriculture, Forestry and Fishing, Section H is Transportation and Storage, going all the way to Section U which is Activities of Extraterritorial Organizations and Bodies!

How to find my SIC code?

The best place to start looking for the relative SIC codes to your business is the .gov website. On the .gov site you will find the complete list of UK SIC codes and their respective business activities. This list is the full list of codes available from the Office of National Statistics.

https://resources.companieshouse.gov.uk/sic/

How many SIC codes does my company need?

Normally only one SIC code is required. However there may be situations where more than one code is not only required but preferable. It is always best to seek professional legal advice to insure your company is correctly set up. For example, if you are running a limited company that’s business is property, the business both buys and sells property and also retains property to rent, multiple codes may be required.

Do I need a SIC code if my business is not trading?

Yes, a dormant company still requires a SIC code! In fact there is a specific SIC code for dormant companies and non-trading. Again you will need to seek professional legal advice for which code is correct for your business.

99999 – Dormant Company

74990 – Non-Trading Company

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Your company registration number is unique to your company, it is issued by Companies House on formation of your business entity. It is normally eight digits long or two letters followed by six digits, depending on the type of entity it relates to and if it’s registered in Scotland or not. The company number is displayed on your certificate of incorporation, it appears on the company register along side your company name and is also noted on most if not all correspondence with Companies House.

It can be referred to as your “Company Number”, Company Registration Number”, “Company CRN” or just “CRN” for short.

Once your company has been formed and company registration number issued, it cannot be changed.

Companies In England & Wales: Start with 0 or 1. (Sometimes the 0 is left out, and it becomes a seven digit number.)

Limited Liability Partnerships (LLPs) In England & Wales: Start with OC (The letter O not the number zero.)

Companies In Scotland: Start with SC.

Limited Liability Partnerships (LLPs) In Scotland: Start With SO (The letter O not the number zero.)

Companies In Northern Ireland: Start With NI.

Limited Liability Partnerships (LLPs) In Northern Ireland: Start with NC.

How do I quickly find out the company number of my business?

The quickest and easiest way to lookup your company number, often much quicker than finding it in your own records is to search the online register. Simply head over to the Companies House web search facility and enter your company name!

https://www.gov.uk/get-information-about-a-company

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The company registration number is displayed just below the company name, really clear and easy to find.

You can also check loads of other information via this .gov website. All the up to date public information is available here to view, download, verify, all completely free! There is never any need to pay for a service to find and access this information.

You can search and find the number of any registered company for free using the Companies House Website. A company number is not private or confidential information. There is no reason not to make the number of your company publicly available on your website or business marketing. It’s just a public as your business name, whatever that may be!

Where should I use my Company Number?

You can use your company number on any and all business documents, mostly any documents you display your business name alongside your business address, you should detail your company number. Some documents require your company number, like invoices, credit notes, receipts, and official correspondence.

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