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Company Formation

Posted 18 Sep 13

Registering a company, opening a business bank account, searching for premises... in which order should you form a business?

Firstly, an address is required in order to do the first thing - establishing a business; Of course an address is needed to sign up for a bank account too. Bank details are necessary when hiring or renting office or commercial space so are vital in the running of your business.

It’s difficult to register a new business though - banks pride themselves on ‘getting to know’ your business and need to discover its nature so that they can open your account and support you as you grow and develop your company.

The ultimate priority is possibly registering your company; limited companies will need to be registered with Companies House. This will of course depend on the legality or status of your business. Your home address can be used to do this, however if your registered address should change you will be required to alter it with Companies House.

If you aren’t a limited company and are a sole trader working on a self employed basis, or you are establishing your business as a partnership, the registration process is slightly less formal than the above.

Once you have formed your company, and registered it either with Companies House (or with the HMRC if you are a sole trader) the next step is opening your bank account.

Depending on your circumstances, as we mentioned before the bank will need information about your business. Use your home address if you don’t yet have premises and change that detail later.

Once you have a bank account in place, you can rent office space and hire or buy equipment that will be used in your business.

All details are unique to you and your business so, in reality, register your company first; open a business bank account; then search for premises and then buy your equipment.