There is more than one way to go about launching a company. One of the most important legal requirements for every business functioning in the UK is to be registered.
The business preparedness checklist is completed by first completing the registration procedure, which, depending on the size and kind of legal structure your company needs, maybe a daunting ordeal. But if you take things step-by-step, you can conquer each level with ease and assurance.
Always remember that the material provided here is meant for educational purposes only and that each firm’s specific needs will vary. To ensure you register your business in a method suitable for your purposes, speak with a legal professional.
Learn the ins and outs of legally establishing your business, when it’s a good idea to do so, how to choose between different business forms, and why it’s crucial to do so.
How to Form a Company in the UK: 6 Easy Steps
Determine the Type of Your Company
If you’re wondering how much does setting up a limited company cost, know that deciding on the kind of organization you want to set up is the initial stage in the registration procedure. The next step is to register your company with the appropriate government agency, such as HMRC or Companies House.
During the registration process, you can select one of several business structures available in the UK. Whether you want to have workers, the amount of turnover you anticipate, the industry in which you operate, and other operational factors will determine which one is best for you.
Get Your Company Name Registered in the United Kingdom
After deciding on a name for your limited liability company or limited partnership, the following step is to have it registered with Companies House.
You must verify the availability of the desired name before proceeding. A search for the name may be conducted using the company name availability checker provided by Companies House. If it’s available, trademarking it will ensure no one else can use it.
From a legal perspective, your company name mustn’t infringe against any of the following regulations:
- Same as: If you check Companies House and see that another registered company’s name matches your proposed name, it might imply that the same name is already in use or that there are minor alterations, such as the addition of a “+” or “&” sign instead of “and.” Regardless, the current company’s written consent is required before you may register this name for your firm.
- Too like: A business name that is confusingly similar to another one already in existence will likewise be disapproved. Companies like “EZ Electrix 4U Ltd.” and “Easy Electrics For You Ltd.” are cited as examples by HMRC. Both names are similar, and whichever company registered first would get to use it. This is true even though the spellings are different.
- Explicit profanity: A name that contains a racial or religious insult, a swear word, or both is not likely to be chosen by most people. Make sure it’s tasteful if you’re considering adding some comedy to your company name. We will likely not consider your name if your humor is inappropriate or offensive.
- The government of the United Kingdom has a list of terms considered sensitive and for which special authorization is required when using them in company names. The Financial Conduct Authority’s approval is required. For instance, use the word “insurance” in the name. Also requiring specific authorization are terms about the royal family, such as His Majesty, Prince, Queen, and Windsor.
- Different terms subject to regulation: There is a list of controlled terms beside the list of sensitive words. You must get approval from specific professional organizations if you want to use any of these terms in your business name. The British Olympic Association’s approval is required. For instance, before you use the terms “Olympic” or “Olympian.”
Select Your Company’s Legal Mailing Address
A public record of every company’s address is required by law in the United Kingdom. Your house, business, or other location can serve as this address.
Documents must be delivered to a real place (not a P.O. box) to confirm receipt. However, it need not be the physical place from where you run your firm.
For those who prefer not having their home address made public but would still like to work from the comfort of their own home, plenty of professionals like accountants and lawyers are willing to let you use their business addresses for a small price.
Association and Memorandum of Association
Two papers, the memorandum of association (MOA) and the articles of association (AOA), are required for most firms registered in the UK. The signatures of the company’s directors and shareholders are required before the registration of a firm in the UK.
If you register your company online, a MOA will be created automatically. To officially establish the company, the original shareholders and directors must sign the document. This memorandum cannot be amended or updated after registration.
