A step-by-step guide to registering a company with ease and reaping its benefits
Many people in the United Kingdom have the goal of being their own boss, and one common way to do this is by forming a limited company.
It’s a promising road that might lead to financial success and the personal fulfillment that comes from making something from scratch. On the other hand, a lot of bureaucratic red tape and legalese may make the process appear as scary as it is exhilarating.
Do not be alarmed; with the correct information, forming a limited liability corporation in the United Kingdom is simple. Alright, have a cup of your favorite coffee and get ready to conquer the business world because we will simplify the process and make sure you start on a solid foundation.
The UK business registration process in six easy steps
1) Select the type of your business
Deciding on the kind of organization you want to set up is the initial stage in the registration procedure. Afterward, you should register your company to Companies House or HMRC.
When you register a company with ease in the UK, you have a few options for the structure of your company. Which one is best for your business will be dependent on factors like your sector, whether or not you want to hire staff, the expected turnover rate, and other operational concerns.
Here, we will examine the various legal structures that are available to you in further detail.
Limited company
To do business in the United Kingdom, a limited liability company (LLC) must take the “Ltd” or “Limited” suffix and register with Companies House. Within three months after registering with Companies House, these firms must also be registered for corporation tax.
In the eyes of the law, a company is distinct from its owners and managers. If the business has financial difficulties, your assets cannot pay off the debts.
Partnership
Two or more persons form a partnership when they decide to launch a company together. All partners are jointly and severally liable for the company’s debts, losses, national insurance, and sharing in the dividends and profits.
Sole trader
One of the most basic company structures is the single trader. Here, your personal and work lives are inseparable from one another.
A single proprietor does not need to file business paperwork with Companies House. However, they are still liable for paying income tax and national insurance through self-assessment tax returns, which they must register with HMRC.
Overseas business
You can register your business with Companies House as an overseas company if you currently own and manage a firm in another country and want to build a physical branch in the UK. The process, including the £20 charge, consists of filling out a short form and sending it to Companies House.
2) Obtain a company name in the United Kingdom
Registration of the company name with Companies House is the subsequent stage in establishing a Limited Liability Partnership (LLP) or a Limited Company.
First, check if the name you wish to use is available. Find out if the name is available by a company by searching for it using the Companies House tool. You should trademark it to prevent others from using it if it isn’t already in use.
Among the many factors to consider when settling on a name for your company is how well it reflects your sector and the message you want to convey.
3) Select your company’s legal mailing address
An official business address entered into the public record is required of all businesses in the UK. Your house, business, or other location can serve as this address. Documents must be delivered to a real place (not a P.O. box) to confirm receipt. However, the physical location from which you run the company is not required.
Finding an accountant or other expert willing to let you use their business address for a charge is a simple solution if you intend to work remotely but are wary about publicizing your home address.
4) Association articles and memorandum
Memorandum of Association (MOA) and Articles of Association (AOA) are two papers that are required for most UK-registered firms. These documents must be signed by the company’s director(s) and shareholder(s) before a business may be registered in the UK.
Once you register your business online, a MOA is automatically created. The original shareholders and directors must sign the document to officially establish the company. No changes or edits will be possible to this memorandum after registration.
5) Obtain your SIC code
Your SIC code is an additional piece of information required when registering a business in the UK.
Statistical data on different sectors may be analyzed and reported using these codes, which are used to categorize enterprises according to their industry. Your objective should be to assist Companies House in classifying your firm.
6) Open a business bank account in the United Kingdom
A business bank account must be established for your firm to be registered as a limited company.
To accomplish this, you must furnish the bank with the following information:
- Passports, national ID cards, biometric residence permits, or other forms of official identification for all partners and directors
- Verification of business address
- Business entities Identification number for the residence
- Typical yearly revenue for the company
Get help to register your company
The startup ecosystem is a thrilling place to navigate but also full of chances and problems. A startup’s success hinges on its strategic decisions throughout its early stages, from deciding on a corporate structure to navigating the challenges of engaging with the market.
During this process, company formation businesses become indispensable partners, providing not just assistance in navigating bureaucratic red tape and ongoing strategic counsel and support for startups.
