The United Kingdom (UK) is one of the world’s biggest economies, with a gross domestic product (GDP) of over $3 trillion. It’s a highly developed nation with many industries and a skilled workforce. Many people want to register companies and conduct business in the UK, and this article will show you how to do that.
Why Register A Company In the UK?
- The UK is a high-income country with a median household disposable income of £32,300, according to the domestic Office For National Statistics. This relatively high household income presents opportunities for many businesses to sell products and services.
- The British government provides subsidies and tax incentives to some businesses, especially those in the technology sector.
- London, a British city, is a global financial centre, presenting many opportunities for companies to secure funding to drive growth.
- Foreign residents can serve as directors and own shares in British companies.
Types Of UK Companies
You have several options to incorporate a company in the UK, including
- Sole trader: A one-person business with no distinct identity from its owner. The owner is personally responsible for corporate debts.
- Partnership: When two or more people agree to form a company and share responsibilities for managing it. The owners are jointly liable for corporate debts.
- Limited partnership: The same as above, but the partners are only liable to the extent of capital they invested in the business.
- Limited company: The business assumes a separate legal identity. The shareholders enjoy limited liability protection, meaning they aren’t personally liable for corporate debts and judgments.
- Unlimited company: A business with a separate legal identity but without share capital. The owners are personally liable for corporate debts.
Requirements To Register A Business In the UK
- The corporation must have a unique name not already registered by another business. The name should not be similar to established brands or trademarks, or you risk expensive lawsuits.
- A registered office address to receive mail concerning legal matters. The address must be listed on public records and be accessible during working hours.
- A business must have at least one director responsible for day-to-day management and strategy-setting. Directors must be at least 16 years old and not be disqualified from directorship due to previous conduct.
- A firm must have at least one shareholder or two if it’s a partnership. You can have as many shareholders as you wish, and each one will be allocated shares according to their contribution. The greater the number of shares a person has, the greater their influence over corporate affairs.
Company Registration Process
- Choose a structure
The first step is to choose a legal structure for the corporation. We have listed the options in the “types of UK companies” section. A private limited company is the most type in the UK.
- Conduct a name search
Choose a name that has not been taken by another business or is similar to a registered brand or trademark. The name must also not contain any vulgar language.
- Appoint shareholders and directors
Choose a total number of shares (share capital) and shareholders. Allocate specific amounts to different shareholders.
You also need to choose at least one director for the company. A shareholder can also be a director, but a director is not always a shareholder.
- Documentation
You must provide some documentation, including
- Valid identification for all shareholders and directors, e.g., a passport or government-issued ID card.
- Proof of a registered office address.
- Details about the share capital, including the number and classes of shares.
- Articles of association: A legal document outlining the rules governing the firm.
- Memorandum of association: A legal document signed by all shareholders declaring their intention to form a company.
- Submit Application
You’ll complete a Form IN01 incorporation application and submit it to Companies House with the required documentation. Companies House will review your application and decide whether to approve it. If approved, you’ll receive a Certificate of Incorporation confirming your business has been registered with the government.
You can submit your application online or in person. Online applications can be processed within 24 hours, while in-person applications take several days.
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