It is now very simple to register a company; gone are the days when you had to fill out paper forms, wait weeks for approval, and pay a hefty fee.
A growing number of people are taking control of their businesses from the beginning and registering them themselves. At the same time, some people who want to start a business will hire an accountant or a lawyer to handle the few online formalities.
This article will examine the six things necessary to register a limited company formation in uk. Therefore, keep reading to learn how easy it can be if you’re considering starting a new business and want to join the over 500,000 people who turn their ideas and enthusiasm into a new UK limited company registered with Companies House each year.
1. Company Name
Even though a great company name can be a real asset to the company, many people struggle with it or, even worse, rush to a decision they later regret.
Several rules govern what can be chosen as a company name when registering a new company, the most important of which is that it is distinct from any other existing company. The Companies House must approve any proposed name for a new limited company.
2. Director’s Details
Every company registered in the United Kingdom is required to have at least one director. Of course, a company can have multiple directors, but if you are working alone, this is fine.
The company director(s) is/are legally responsible for the company’s operation and must ensure that all accounts and reports are meticulously prepared and submitted annually. When establishing a company, directors must be aware of their responsibilities.
3. Memorandum and Articles of Association
The company’s constitution is comprised of the memorandum and articles of association.
The memorandum of association, a brief document with typically a few standard clauses, is signed by the holders of the initial shares to confirm their agreement to form a company. To register a company, you must submit the memorandum of association to the Companies House.
The articles of association are the company’s “rule book,” defining how the directors will run the company on behalf of the shareholders. A large number of businesses use the private company Model Articles, which cover the majority of situations. If the company has unusual requirements, it can instead use bespoke articles; in such cases, it’s wise to seek legal advice.
When registering the company, you must file the memorandum and, in the case of bespoke variants, the articles of association with Companies House. Rather than sending paper copies, you can do this electronically, and the system will automatically create, fill out, and send these documents.
4. Company Address
According to UK law, your new company must have a fixed address, which must be displayed on all websites, letters, terms and conditions, directories, and other company documentation. This ensures transparency and fosters customer trust.
You must register your Head Office or place of business with Companies House, regardless of where it is located. This address must be in the United Kingdom.
5. Details of People with Significant Control
You must provide information about anyone in your company who has significant control over your limited company, including their name and address. This could be for people who own more than 25% of your company’s shares or have voting rights over its operations.
You must keep a PSC register and file it with the central public register at Companies House. This register improves transparency and can help investors decide whether to invest in your company.
It also aids law enforcement agencies in their investigations into money laundering. As a result, you must keep this register up to date and newly registered whenever there are changes and include it in your annual reporting.
6. SIC Code
The Standard Industrial Classification (or SIC) code describes your new company’s main activities. If you do not provide this code when filing with Companies House, your documents may be rejected.
What is a company registration number?
When you incorporate a limited company or a Limited Liability Partnership (LLP), the Companies House service will send you a one-of-a-kind eight-character registration number (often abbreviated as “CRN”). The registration number serves as a unique identifier for your company.
This number will be required when contacting Companies House, filing your annual accounts, and registering with HMRC for corporation tax and VAT. This number is also known as the “Companies House Number.” Because a computer generates the company registration number, it cannot be changed or selected by hand.
How Much Does It Cost to Submit UK Company Formation Documents?
Manually submitting forms for UK company setup and registering a limited company with Companies House will cost £20. This usually takes about eight days. The cost of same-day service is £50.
You can also register a company online, which can be done in just three hours. You’d need to provide some personal information to help Companies House identify you as a company director, and you’d be good to go.
There are essential documents you’ll need to get started to launch a business in the UK. Among them are articles of incorporation and a memorandum and objects clause. With these documents in hand, you’ll be well on your way to launching your business.