Founding a company in the United Kingdom is not a difficult thing. Yet, if you are new to this and you have no experience, it is very likely that you will experience some challenges throughout the process. Before you start the UK company formation process you should consider a few things. For instance, you should figure out what your specific requirements for launching a company are.
You can start an international or a domestic company. You can also start a company that works online or offline (or both). These are some of the questions that you can answer easily with the help of a company formation agent. They are specialized in this field and they can help you achieve your goal by maximizing the potential of your assets.
UK Company Formation Explained
Before we explain this process, let us mention that the most popular type of companies in the UK is limited companies. That’s why we will explain this formation process. One of the first things that you should do is to select a company name. There are two things that you should remember – the name you choose must be different from the names of the existing companies. In addition, you should ask for permission if you want to use specific words.
Many international financial experts claim that the UK is one of the best places for company formation because this process is very simple, easy and transparent. When you finally select a name, you should look for approval by the ROC – Registrar of Companies. This agency will confirm that the name you’ve selected is available. It is possible to select up to six names and ask for approval.
The next step in this process is the creation of the Articles of Association and Memorandum of Association. The Articles of Association is focused on the internal structure functions of a company while the Memorandum is focused on the crucial clauses related to the limited company formation. The object clause and the capital clause are the most important clauses in the Memorandum.
When you create these two documents, they should be sent to the Registrar of Companies. If everything is alright, they will approve your request and your company will be registered. Generally speaking, the process of UK company formation usually lasts up to 3 weeks even though it’s much faster in many cases. Don’t forget that you will have to pay registration fees before your company becomes registered officially. If you are using the help of a company formation agent, you can expect to get a company seal and other related things including a permanent account number.
The registration process has been modernized a few times in the last decade. Future company owners can use the Internet to register a company now. But, this doesn’t mean that you can finish everything without leaving your home. You will still have to show up at least once during this process.
If you want to optimize the UK company formation process, you should definitely use professional help. With an experienced company formation agent, you will finish this process quickly and without any hassles.