Once you have completed the process of setting up a company, there are a few important steps that are necessary in the running of your company. Some of the more important subjects are highlighted here, to ensure you have everything correctly prepared and up-to-date.

The annual return

This is basically a summary of the company’s most important information. This includes details and addresses of all current directors and the company secretary. The annual return provides Companies House with details of your company’s registered office address. In addition, it will provide a summary of the make-up of shares and shareholders in your limited company.

The company secretary is responsible for completing the annual return on behalf of the company. This can be done by yourself, if you are the self-appointed company secretary. Alternatively, it can be done by Wisteria if this option is selected. The annual return must be completed every year.

Annual accounts

A second requirement following the formation of your company is to fill in accurate annual accounts, sometimes called financial statements or year end accounts. Again, this can technically be completed personally; however the accounts tend to be much more complicated than those of a sole trader and in reality most companies will require the assistance of an accountant. You may like to appoint a chartered accountant to undertake this task for you. Ideally, you may wish to do so shortly after forming your company so that you can obtain the advice you require to get up and running. This ensures that they are aware of all current activities, and are able to produce accurate annual accounts on your behalf.

VAT registration

If a company is making, or intends to make, a product that is taxable by VAT, they may need to register for this service. VAT registration is a topic that Wisteria’s accountants and tax advisors will be able to assist you on. VAT registration may be compulsory or optional, depending on the turnover of your company. For more information on VAT registration and to see whether you require it, please visit http://www.hmrc.gov.uk/vat/start/register/

Pay As You Earn

Your new company may want to employ individuals, or even simply pay a salary to the directors of the company. In order to do this, you are required to register yourself as an employer. Applying for PAYE (Pay As You Earn) allows you to ensure you are deducting the right amount of tax and national insurance from wages of your employees. This is then paid to HRMC. An accountant or tax advisor will be able to assist you on this matter, and can discuss payroll matters and the implementation of a payroll system with you.

Bank account

You are legally required to keep separate the money of your new company from any other money you may have. The best way to do this is through setting up a business bank account. As part of our application process, Wisteria Formations offer you the chance to fast-track your application for a business bank account.

Please see the related video from our YouTube channel: wisteriaformations

The following article, from Squidoo, is on the Six Steps After Your Company Formation

If you have any questions regarding the company formation process, or your responsibilities following incorporation, please feel free to call our team on 0844 893 0808.