Register (limited) business before trading

[omega1]

Hello,

I'd like to register a new limited business and register my company name, but am not quite ready to start trading. Can I do this, or does everything (accounting, book-keeping, etc...) start as soon as I register the company at Companies House?

Thanks.

 

[Mr D]

The time starts from registration however you could spend years setting up to trade - and keep company name going.
Some people set up the company for later and keep it dormant for a while.

 

[omega1]

The time starts from registration however you could spend years setting up to trade - and keep company name going.
Some people set up the company for later and keep it dormant for a while.

Thank you, to clarify, I'd need to present accounting then as soon as I register, even if there are no transactions?

 

[Mr D]

Thank you, to clarify, I'd need to present accounting then as soon as I register, even if there are no transactions?

You start putting your stuff together yes. Do not have to register with an accountant at that time or start paying one.
Can simply get a box for receipts and start saving them - then enter into software later. Could be months later.

First time I set up a limited company the first transaction going through was 11 months later.

 

[Scalloway]

I'd need to present accounting then as soon as I register, even if there are no transactions?

If there are no tranactions apart from share capital then you can submit dormant accounts. This is just a simple form.

 

[Spur Support Services]

The company registration can be done pre trading. It's easy via the Companies House website. The hardest bit is finding a name you like.

If you are expecting to trade within 12 months through this company, then definitely take advantage of the online corporation tax registration facility that the Co House Registration process directs you to.
Advisers will charge you money to perform this task. Much easier to do it immediately.

Don't forget to write down every reference given to you, by HMRC and Companies House.

The company is effectively dormant until you start to trade.
Dormant accounts will need to be filed if it never trades, but there's an easy online filing for these at Companies House.

Pre-trading expenses should be recorded for inclusion in the accounts, so if you dont want to look at accounting software just yet, then just keep a spreadsheet and copies of any documentation to evidence expenses, until such time as these can be transferred to accounting software.

If lots of transactions arise before you invest in an accounting package, ask you accountant to perform the upload as they will be able to perform the task more efficiently. Your accountant is likely to charge you, but its all a matter of how much you value your time and how much you like posting accounting data.

If you speak to accountants, they can advise you on accounting software and they may have software deals which make it more attractive to set up the software sooner rather than later.

 

[MyAccountantOnline]

Hello,

I'd like to register a new limited business and register my company name, but am not quite ready to start trading. Can I do this, or does everything (accounting, book-keeping, etc...) start as soon as I register the company at Companies House?

Thanks.

Yes you can register a limited company and keep it dormant until you are ready to start trading.

The date of incorporation ie when the company is formed will however be the starting date from which accounts have to be prepared regardless of the date it starts trading. Accounts have to be prepared for a limited company even if it remains dormant and doesn't trade.

Are you sure a limited company is the best and right option for you?