The United Kingdom is known for its highly efficient investment and business environment. The country’s pro-enterprise culture is evident from more than 5.7 million private sector businesses in the country. There is still a lot to be considered when setting up your own company in the UK. You have to start by selecting a company structure, registering the company name, and providing details about your venture. All of these are just the beginning of things you need to do to register a company here.
So, without further ado, let’s take a look at the five easy steps to take for company registration in the UK.
1. Select the company structure
You will have to start with the type of entity incorporated, which is usually based on the purpose, liabilities, management, and ownership of the company. A private limited company (private company limited by shares) is the most common corporate structure set up in the country under the Companies Act 2006.
It is a kind of business structure that can be highly effective in managing your taxes. For instance, being a company director means that you draw some part of your income from your company dividends, which means paying less income tax. Moreover, being a limited liability venture implies that your assets (car, house) won’t be at risk if the company runs into financial issues.
2. Provide details about your company
So, there are three primary details that you will have to disclose to register your company in the UK:
- Registered office address: This is where all the HMRC letters (HM Revenue and Customs) and the Companies House will reach. It has to be within the UK and must be possible to reach through mails.
- Name of company directors: It is mandatory to have at least one company director, whose name, residential address, and date of birth have to be submitted to Companies House.
- Name of company shareholders: The Company needs to have at least one stakeholder whose name, date of birth, and residential address have to be submitted to Companies House.
You can use your residential address to register your business if there is no separate address yet for it. Remember that a majority of the information provided by you for the registration will be made publicly available. So, if you’re not comfortable with that idea, look for a company registration agent service that can help you to register a company in the UK with no hidden charges.
3. Register the name of your company
You can’t simply pick up any name for the company and decide to go through with registering it. First off, you need to check whether that name is available. Secondly, you would want a name that has some recall value in your target customers’ minds. Here are the three things you need to remember when it comes to registering your company’s name:
- Research your market: Research other companies’ names in your vertical to ensure that your company name is unique.
- Choose a short and meaningful name: Your company’s name is like its identity, making sure that it is self-explanatory and straightforward.
- Go for easy and straightforward names: The company name should be easy to remember, which is only possible when you use simple words for it.
5. Allocate shares and complete your memorandum
The next step in company registration in the UK is to allocate shares to the shareholders. You can take the simple route of assigning one share to every shareholder by making every individual share worth one pound.
At this stage, you also need to complete the Articles of Association and Memorandum. These are valuable documents that formalize the way your venture is going to function. The Memorandum of Association is the document used to set up the company, and the Articles of Association outlines how the same company is owned, governed, and run. The responsibilities and powers of the directors are clearly stated in the Articles of Association.
Before moving on to the next stage, you will have to ensure that these documents are signed by the company’s directors, shareholders, and secretary.
5. Submit your application and documents to Companies House
Finally, you are almost at the end of the process of company registration. You will have to submit your application to the Companies House to complete the registration.
Companies House refers to the registrar of companies in the UK. It also happens to be an executive agency that trades funds of Her Majesty’s Government. Try to get your application submitted before 3 p.m., and you might get same-day registration.
Adhere to these steps to get your new venture registered in the UK. In case you feel overwhelmed by the long process, or feel the need for a helping hand, find a reliable company registration agent to get the work done.