Overall, the United Kingdom is one of the best countries in the world to register a company. So, it’s no wonder why many people in the UK and around the globe are looking for an answer to one simple question – How to Register a Company in the UK. If you are one of them keep reading because we are about to present a simple guide that can help even complete beginners in this area.
How to Register a Company?
Every How to Register a Company in the UK guide should start with information about the process of setting up a company. In other words, there are some things that you have to do before the registration process begins in the first place.
First of all, you should know that there are a few different types of companies available in the UK, but most people choose private limited companies for regular business activities. This is the type of company that brings many benefits and only a small number of potential downsides. But, what does a private limited company actually mean?
First of all, this means that the company is separate from the people who manage it. This means that there are no personal legal consequences for the management. The private limited company also has independent finances from the personal finances of the owners/management. Finally, one of the best things about this specific type of company is the fact that it can keep the profits it generated once their taxes are paid.
If you want to set up a company like this, you must register with Companies House. This process is called incorporation. In order to achieve this goal, you must find a suitable company name, an address for the company, one or more directors, details of the shares issued by the company and get the SIC code. In addition, the shareholders must agree to make the company and the written rules which are also known as memorandum and articles of association. Finally, you must provide details of individuals with significant control (PSC) over your company.
When it comes to the name of the company, you should know that the name you choose must be unique. In case it’s very similar to an existing company’s name, you may be forced to change the name. The company name will always end in Limited or Ltd.
Furthermore, you must have a company address. This is the official address where you will get documents like the letters from Companies House. The good news is that you can use domestic addresses for registration. There are just two requirements for the company address. First of all, it must be a real, physical address in the United Kingdom. The other requirement is to choose an address that is located in the same country where your company is registered. For example, a company registered in Wales must have a company address in Wales.
The next step is to appoint a company secretary and at least one director. It’s good to mention that the director doesn’t have to live in the United Kingdom and he or she must be at least 16 years old. The shares we’ve mentioned above must be determined in terms of numbers and values. In order to register a company, you will also need a memorandum of association which represents a legal statement sign by the original shareholders and articles of association which represent written rules about the company management activities.
How to Register a Company – The Final Step
So, once you have everything you need for registration it’s time to register your company. There are a few ways in which you can complete this activity. First of all, you can do this online, but only if your company meets certain requirements. Namely, only companies limited by shares can be registered online. In addition, only companies that rely on standard articles of association can be registered. It takes less than 24 hours for a company to be registered in this way, but only if all the documents are submitted and all the requirements are met. The online registration service is available for corporation tax registration and PAYE registration too.
The next registration method that we would like to mention is the postal registration process. Business people can use form IN01 to register a company in this way. It usually takes between eight and ten days for this process to be completed. It is possible to register in less than 24 hours but only if you send the envelope directly to Companies House by 3 pm and pay one hundred GBP. This is a so-called same-day registration process.
There are two other ways to finish this job. The first one is with the help of third-party software. However, this method can be tricky because there are many scammers out there trying to take advantage of people looking for an inexpensive and fast solution for company registration in the UK.
The second method is getting more and more popular in the last few years. Of course, we are talking about company registration with the help of a company formation agency. These agencies have an experienced, knowledgeable and professional staff which has all the tools needed to complete a process like this. We are talking about agents that can help you speed up this process to the maximum. They will guide you through the entire process and ensure that you are not missing any of the required documents. They can also check these documents for errors and remind you of certain things that can help the process.
Instead of spending time doing research and correcting mistakes, you can focus on making business plans and strategies. It’s always a good idea to leave this task to true professionals that have already helped hundreds of business owners. That’s why our recommendation is to use our professional company formation services. We hope that this How to Register a Company in the UK guide will help you.