Incorporating a business is just the beginning of your journey. Once you’ve completed company incorporation, you’ll take on new responsibilities. These include managing finances, meeting ongoing compliance duties, and running day-to-day operations. Of course, you’ll also need to attract customers and clients to buy your products or services, too.
Incorporation is a major milestone, and it’s a moment to celebrate. But it’s not the right time to slow down. After incorporation, you’ll need to take several important steps soon after to stay compliant and prepare the business for growth.
In this article, Rapid Formations – which offers company formation, business address and other corporate support services – will take you through some of the things you need to do after incorporating your new business.
1. Set up a dedicated business bank account
After incorporating a business, one of the first practical steps to take is setting up a dedicated business bank account. It can help you understand your finances clearly, as you’ll see exactly how much money the business holds. It will also help you with tax compliance.
To set up a new business bank account:
- Choose a bank that supports businesses like yours (some don’t allow businesses in every sector to open accounts with them)
- Research the terms of your account thoroughly (look out for extra charges, for example)
- Prepare the necessary documents before you try to open an account (e.g. ID, and proof of company registration and address for any directors or owners)
Once you’re ready to open the account, make sure you set it up in the company’s name. Hopefully, you’ll find that having a dedicated account will help simplify your bookkeeping, financial audits, and any future funding applications. Combine this with cloud accounting software for invoicing, and you’ll get a clear view of your business’s financial health.
2. Understand your tax and accounting responsibilities
Having a registered business means new financial obligations. As soon as you’re up and running, you’ll need to understand your tax obligations and any other financial compliance regulations. Early awareness is crucial as it’ll help prevent penalties and reduce the risk of unexpected bills.
To meet your responsibilities in the UK, you’ll need to:
- Register for Corporation Tax with HMRC (typically within three months of starting trading, which refers to conducting any form of business activity rather than your first sale)
- Be prepared to submit annual Company Tax Returns and pay Corporation Tax by the deadlines
- Maintain accurate financial records, as this is required by HMRC and Companies House
- Register for VAT if applicable (i.e. if your turnover may meet the current VAT threshold)
- If you plan to hire staff, register as an employer through HMRC
While you can use cloud-based accounting software, like QuickBooks, to help you with day-to-day invoicing, you may want to consider working with an accountant to ensure you meet your tax obligations. While the process may feel daunting, the support of a professional can make the process significantly easier. Embracing accurate record-keeping from day one will also help you fill in future forms. So, keep a note of every expense – even if you haven’t acquired your first customer yet.
3. Meet ongoing legal compliance requirements
Beyond the initial paperwork involved in company incorporation, you’ll also have ongoing legal obligations to meet.
For example, UK companies must keep their statutory registers up to date, which can be held digitally or physically. You’ll need to keep the following records:
- Register of directors
- Register of shareholders (members)
- Register of Persons with Significant Control
- Share allotments and transfers
- Resolutions and major decisions
Keeping these registers up to date will help you meet your Companies House obligations. You’ll need to report any changes to company details (such as changes of directors or their personal details) to Companies House. You’ll also need to file annual accounts. Good record-keeping throughout the year will make this process smoother. Although small companies may be eligible to file simpler accounts with Companies House, you should keep note of all the information you might need later – even if it’s just for your own benefit.
It’s also important to track all key deadlines so you don’t miss any statutory requirements (such as annual report or tax submission deadlines). You may find it helpful to create a digital calendar and set up reminders for upcoming key dates.
4. Establish a clear operational strategy
Once you’ve completed the initial administrative steps of incorporation, review how your business will operate day to day. Post-registration is a great moment to consider the practical side of running your organisation.
It’s a good idea to refine:
- The basics of your business model – Think about who your business serves and how.
- Early marketing plans – For example, identify which channels may help you reach your first customers cost-effectively.
- Cash-flow planning – It’s tough to know how much money you’ll make as a new business, but you at least need to have a clear view of your available funds and understand when to expect a tighter budget.
- Hiring considerations – If growth is expected soon, formulate a plan for when you need to recruit employees.
Having some clarity mapped out will help you prioritise as you build your small business.
5. Put strong internal processes in place
You may know how you want tasks to be handled in your business, but your employees might not. It’s important to get on the same page as early as possible.
As you carve out your business, establish:
- Internal policies (such as having a defined process for approving expenses)
- Basic governance practices (e.g. how to document changes to the company)
- Operational procedures (which should help teams work efficiently and consistently)
While things will naturally change in the early days of your business, it’s important to record everything in documentation and keep updating things formally as you evolve.
Even if you’re a small team, it’s still worth taking these steps. Having clear policies will reduce the risk of miscommunication and, therefore, conflict. Plus, it will set you up for smoother growth. It’s far easier to onboard new team members if everyone understands how the company operates and the expectations for employees.
Get ready to take your business to customers and clients
Registering a business is a major moment. However, most of the real progress starts from the steps you’ll need to take afterwards.
By focusing on finance, compliance, and internal organisation, you’ll give yourself a solid foundation for business success. While the process may initially feel demanding, breaking it down into structured steps can make it more manageable.
Rapid Formations can help with administrative compliance requirements, which may free up more time for you to focus on running your business.
