Starting a business is an exciting step to bring your vision to life.
However, before you can officially launch, you need one more thing to tick off your list: company registration. You must be wondering how long that takes. This process depends on how prepared you are and on your registration approach.
Sometimes, the process may be completed in a few hours. That said, in some cases, it can take a few days or even longer, given that there are errors or extra approvals involved.
So, it’s not a bad idea to know what to expect to prevent delays and get your business rolling smoothly.
In this quick guide, we’ll outline how long you can expect the registration process to take and the typical factors that will extend or speed up the timeframe, so that you can enter the market quickly.
Factors Affecting the Registration Process
There are several factors that can slow down the process of your company registration. The factors are listed below.
1. Inaccurate Information
Accuracy is one of the main factors that add to the duration of your company registration process. That said, delays are caused frequently by submitting incorrect or incomplete information which should be avoided. This incorrect information includes a misspelled name, an invalid address and so on.
For example, if you try to register a company in the UK, even the smallest mistakes, such as mismatched director or shareholder details, can become a bottleneck.
The best way to avoid these is to double-check the information you’re submitting with official documents. So, if you spend a few extra minutes reviewing your application, it will save you valuable time in the future.
More importantly, if you find such handling of documents tough, you can search for top company formation services in the UK that will assist you to register a company UK properly with no issue.
2. Company Name Issues
Picking your business name is a decision that extends beyond branding and actually determines how quickly your company can be registered. The name should be unique and follow the official naming policies, especially for sensitive words, like “bank,” “charity,” “group,” etc., without proper approval.
Additionally, your application may be rejected if the name is similar to an existing company name. As a result, it will cause delays in the registration process. It can be time-consuming, especially if you are submitting your application by mail.
For this reason, a smart move is to confirm your name uniqueness on the online name availability checker before applying to avoid any complications.
3. Type of Business Structure
The business structure you choose can considerably affect how long it will take you to register your company. For example, sole traders can usually register for tax purposes fairly quickly, usually in just a few minutes online. It is possible because the process is easy and does not require so much paperwork.
However, a limited company requires more thorough documentation and checking. It becomes more complex if your company has more than one director, shareholders or share classes. In this context, it leads to longer processing times as the application is reviewed in more detail.
Further, additional forms and legal requirements apply to LLPs (Limited Liability Partnerships) and CICs (Community Interest Companies). Generally, these types of businesses require more time to ensure all appropriate compliance and documentation are in place.
That means the larger and more complex the business structure, the more time you should allow for registration.
4. Time of Submission
The time and day you submit your business registration application can greatly affect how quickly it’s processed. On that note, if you submit your application early in the morning, especially on Tuesday to Thursday, you have a higher chance of getting approval on the same day.
However, if you apply on Friday afternoon, over the weekend or during a public holiday, you will have to wait until the next business day for your application to be worked on. So, there can be an endless delay, especially if you are rushing to launch your business.
Seasonal factors should also be taken into account because processing times can stretch to during peak times. For example, at the beginning of the new tax year or early January, when many entrepreneurs start new ventures, there is an increased volume of applications, slowing down the approval process.
Therefore, it is beneficial to submit your application early in the day to avoid delays and peak periods. This timing strategy can help speed things up as much as possible.
5. Manual vs. Automated Review
The method you use to submit your business registration affects how quickly it’s processed. Automated systems that review applications within hours when all information is complete and accurate work better for online applicants. Thus, an online application is the fastest and most efficient method for registering your company.
On the other hand, postal applications are subjected to manual review. It means that someone checks the documents physically, which, of course, takes more time. Also, in case of issues like unclear handwriting, missing information or inconsistencies, the application may be returned and further extend the timeline.
Moreover, even for online applications, some may need to be manually reviewed, especially if your company’s name includes sensitive words, suspicious addresses, or suggests compliance issues. In these cases, it could delay the process for several days.
Hence, you should submit your registration application online after carefully checking the details to avoid any unnecessary delays.
Tips to Speed Up the Process
Follow these simple yet effective tips if you want to speed up your business registration:
- Online submissions: These are faster and usually processed within hours if everything is correct.
- Avoid sensitive names: Refrain from using names that will require additional permissions, as this will trigger manual review and cause delays.
- Double-check it: Go through the application line by line and look for typos, missing information, or mismatched data that may slow things down.
- Choose a good formation agent: Choose professional services that can guide you and streamline the registration process.
- Apply early in the day: Applications submitted earlier in the week are more likely to be processed the same day.
With these steps, you can skip common errors and register your business in a speedy and easy manner.
Conclusion
Registering a business can be overwhelming, as it can take a long time, especially if there are errors. That said, factors like inaccurate information, company name issues, business structure, submission time, and mode of submission show the errors that can slow down the process.
Also, if you want to avoid delays during the registration process, follow the right approach with the tips mentioned. Therefore, this tedious procedure can become convenient when you are well-prepared.
