Company Incorporation in the UK
Forming a company in the UK involves several steps and considerations. Here’s a general outline of the process:
- Choose Your Company Structure: The most common types of company structures in the UK are:
- Sole Trader: Simplest form of business, owned and operated by one person.
- Partnership: A business owned by two or more people.
- Limited Company: A company ‘limited by shares’ or ‘limited by guarantee’, where the liability of members is limited to what they have invested or guaranteed to the company.
- Select a Company Name: Your company name must be unique and not similar to any existing company. It also must not contain any sensitive words or expressions without permission.
- Prepare the Necessary Documents:
- Memorandum of Association: A legal statement signed by all initial shareholders agreeing to form the company.
- Articles of Association: Written rules about running the company agreed by the shareholders, directors, and the company secretary.
- Choose Directors and a Company Secretary:
- Directors: You need at least one director who becomes responsible for the company’s records, accounts, and performance.
- Company Secretary: Not mandatory for a private company, but some companies choose to appoint one to share the directors’ responsibilities.
- Identify Shareholders and Issued Share Capital: Decide who the shareholders or guarantors are and the details of the shares you plan to issue at the time of registration.
- Register Your Company (Incorporation): You can register your company with Companies House, either online or by post. The cost and the time required can vary depending on the method chosen. Online registration is usually faster and cheaper.
- Set Up for Corporation Tax: After registering, you’ll receive a ‘Certificate of Incorporation’ confirming that your company legally exists. You must register for Corporation Tax within 3 months of starting to do business.
- Understand Your Legal Obligations: This includes maintaining company records, filing annual accounts, and returns, paying Corporation Tax, and following any other legal requirements specific to your industry.
- VAT Registration: If your turnover is over a certain threshold, you will also need to register for VAT.
- Open a Business Bank Account: It’s essential to keep your personal and business finances separate.
It’s advisable to consult with us during the process to ensure compliance with all regulations and to make informed decisions about the structure and governance of your company.
The United Kingdom (UK) is comprised of four countries:
Each of these countries has its own distinct culture, legal system, and education system. England, Scotland, and Wales are located on the island of Great Britain, while Northern Ireland is on the island of Ireland, sharing a border with the Republic of Ireland.