Forming and Registering a Company in the UK is quite simple once you know what kind of company or business you want to run. Generally, most companies in the United Kingdom register as a private limited company, a partnership, or a sole trader. Before going through the paperwork of registering, you must know the differences between each type of business and company.
Different Types of Business
The UK allows for different types of businesses. A large sum of them follow the same registration criteria but are meant for various other business practices and how one wants to run them in the future. Here are the most common ones which you need to know to register a company in the United Kingdom.
A Private Limited company is ubiquitous when you try to get your business up and running. They have other finances from your personal ones, but they require more capital and a larger presence.
Sole Traders / Partnerships
Sole Traders or Partnerships are perhaps the easiest way of registering a company in the UK. They do not require a lot of paperwork. But you and your business associate are legible for all the finances that follow. So, the ability to handle accounts on your own is necessary!
Additional Requirements Before Registering a Company in the UK
Once you go down the route of legally registering your business in the United Kingdom, you need to make sure you have the proper permits and licenses before you can write. Generally, your local office should let you know if you need anything. However, if your business involves doing any of these, then you must be very specific:
- Selling any sort of Goods Online.
- Storing or Sharing Personal Information.
- Exporting Items Abroad.
- Working with Insurances.
- Selling a service that involves human interaction.
Suppose your business involves any of these tasks. In that case, it makes sense to check in before submitting your registration forms as they will end up being rejected if you are missing a necessary license or permit.
Do note that permits and licenses are generally more expensive than the company registration cost itself in some cases.
Registering a Private Limited Company in the UK
When forming a Private Limited Company or a PMC in the United Kingdom, the first act anyone should perform is to pick a name that suits the particular brand’s identity. Secondly, appointing a Director or an Executive of a company is of paramount importance. They must be a UK National.
Next, the government asks for a Shareholder who is a part of the Board of Directors as well. They provide liquidity to the establishment and are held liable in case an establishment goes bankrupt. They also have a deciding vote and have veto powers.
Getting Memorandums and Articles of Association
A Memorandum and article of Association are needed for anyone who wants to legally articulate any fiscal entity in the United Kingdom. A Memorandum of Association is created for you in the UK as soon as you register online. You can also use its template if you register by post.
An Article of Association is a bunch of rules written with other investors in a business that dictates a premise and concept of any company you wish to register. You must submit both these documents whenever you start off with trying to make a company in the UK.
Getting An Address
In terms of due diligence, anyone who wishes to register must be associated with an office or a physical location in the United Kingdom. If you are not so keen in regard to disclosing your address to the public (especially if it is a permanent residence), then finding an alternative address or procuring an agent who can help you in getting your establishment promptly ready and will happily provide anyone who asks with a valid address.
After going through all the checkpoints, you are now at the final step of establishing yourself as a business owner. The government requires three documents about yourself (as the director) or the shareholder. These can range from your town of birth, passport number to your NIC, etc.
You then need to pay about 12 pounds to a Government PayPal account. You can register yourself online here. If you do not wish to register online, you can always register by post or find an agent who can do it for you. However, they generally are quite expensive.
Getting a business establishment up and running in the UK is quite simple and effortless. You need to be national, understand what sort of business you are running, look for proper licenses and permits, get an address and fill in the paperwork and you should be registered with the Companies House in the UK in no time!
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