There are about 6 million businesses present in the UK. Each of these businesses operates differently and has key identifications that make it stand out from other similar businesses. While each of these businesses is different from one another, there is something that keeps them connected. This is where the Companies House comes in.
You might be wondering what the Companies House is. Before any further ado, let’s get into the details of what this is, what it does, and why it is so essential.
What Is Companies House?
We have already established that businesses in the UK have unique selling points that differentiate them from one another. However, the only link that they all have in common is the Companies House. Why is this so? Well, the Companies House is the organization that you go to when you start a company and wish to register it as a private business.
Without registering in the Companies House, you can go about running as a sole trader. However, if you have bigger aspirations, then seeking to register with the Companies House should be your goal. The Companies House is essentially an entity that was established by Her Majesty’s Revenue and Customs (HMRC).
The entity is government-owned and goes on to carry out a lot of important decisions such as registering and dissolution of private businesses in the UK. Moreover, the entity’s controlling department is the Department of Business.
What Does Companies House Do?
Now that we have established what Companies House is let’s take a look at all the things that it does. There are a series of processes that it looks over, but the two main things that it does are the incorporation and dissolution of private companies.
Incorporation occurs when a business wishes to establish itself as a private limited company. There are a series of steps required to fulfil for the registration to be successful. The other aspect that the Companies House looks over is the dissolution of private companies. This occurs when the owners decide they want to dissolve the company. To do this, the owners need to seek the Companies House to record this event.
The Importance Of Companies House
When it comes to why the Companies House is essential, several reasons spring up. One of the main concerns that are registering with the Companies House eliminates is the sense of insecurity. By registering your business with a trusted entity, you’re able to make sure that your business is separate. There is adequate proof about the ownership of the business, and the registration offers you a certain level of security and benefits as well. Without the presence of the Companies House, there would be no data about companies and clarity on who the business owners are. Therefore, its establishment has proven to be quite beneficial for all private business owners.
If you’re looking to start a company, then head to Seed Formations for all the details regarding what you need to do so. Moreover, you will also understand how to register your business as a private company with the Companies House from here.