Introduction
One of the first steps in establishing a business in the UK is getting familiar with various identification numbers and legal terms. One such term is the Company Registration Number (CRN). This article aims to provide a comprehensive understanding of what a CRN is, its importance, and how to obtain one.
What is a CRN Number?
The Company Registration Number (CRN) is a unique combination of 8 numbers, or 2 letters followed by 6 numbers, assigned by Companies House. It is used to identify your company and verify its legal existence as a UK corporation. The CRN is automatically generated and issued when a company is incorporated.
Why is a CRN Important?
The importance of a CRN cannot be overstated. Below are some of its key uses:
- It validates the entity’s official registration and legal existence.
- It is required when filing company accounts and tax returns.
- It is used by Companies House and HMRC to identify your company.
- It must be displayed on business documentation, such as invoices and letters.
Where Can You Find Your CRN?
You can find your CRN on the Certificate of Incorporation issued by Companies House when your company was established. It’s also displayed on any official correspondence from Companies House or HMRC. If you misplace these documents, you can also fetch it from the public register.
How to Obtain a CRN
Obtaining a CRN is a straightforward process that involves setting up a company. Here are the steps involved:
- Choose a unique company name that complies with Companies House rules.
- Register your company online on the Companies House website. This process requires information such as the company’s address, director’s information, and details of shares (if applicable).
- Pay the registration fee. The standard fee is £12, and the company is usually registered within 24 hours.
- Upon successful registration, you will receive a Certificate of Incorporation, containing your unique CRN.
CRN and Taxation
It’s crucial to note that the CRN is not the same as your Tax Reference Number or VAT number. While the CRN confirms your company’s legal existence, the tax reference number is used by HMRC to identify your company for tax purposes.
Conclusion
In conclusion, understanding what a CRN is and its importance is paramount for any business owner. It’s not just an identification number but a legal requirement that enables you to operate within the confines of the law. Remember, without this number, your company cannot legally transact, and you also risk facing penalties from regulatory authorities.
