UK limited company formation

You are starting up a new business. You have completed all the preliminary foundation work – established your business model; written a positive and convincing business plan; carried out your market research; set up your website and marketing and sourced suppliers. If necessary, you will have obtained finance and investment, rented business premises and employed staff. You are now ready for the last stage before you can launch your business to the world and, hopefully, start along the road to success. Most budding entrepreneurs choose to register their businesses as private limited companies. You can then have the peace of mind that, should the worst happen and the business fails, your personal property and assets will not be at risk. In other words, shareholders’ are not required to service company debts using private assets.

The UK limited company formation process

Increasingly these days, forming a company in the UK is accomplished by using an online company formations agent. These companies will help you through the preliminaries, if you need advice or guidance. You must then complete all the mandatory forms, ensuring you have all the required information. This includes:

• Director details – full name, residential and business address, date of birth (must be over 16 years of age), nationality and country of residence. You will also be asked to create an online signature using security information.
• Shareholder details – full name, address, number of shares and their value. Again, security information for their online signature must be provided.
• Company Secretary details – if you choose to have one. It is not obligatory.
• Registered office address – this must be in the same UK country of incorporation. This address will be where Companies House, Her Majesty’s Revenue and Customs (HMRC) and other statutory organisations send all legislative documents.

When you have completed all the forms, they will be reviewed and submitted to Companies House to be processed and the company incorporated. Typically, within a few hours, you will receive confirmation via email that the UK limited company formation has been completed. You will also receive the Certificate of Incorporation, Memorandum and Articles of Association and Share Certificates for your shareholders. You now have your own registered company and can legally commence trading. Remember that you will be required to register for Corporation Tax and will need to submit Annual Returns and Annual Accounts.

How to choose a company formations agent

There are many UK limited company formation agents ready and willing to assist you to register a company. However, do not just stick a virtual pin in a random company. To avoid any delays or problems, you must choose a company which has extensive experience in company formation and can offer specialist advice. Study websites carefully to ensure that the company you eventually choose will provide all the services you require. Read all the information they provide and, if you have any queries, do not hesitate to call them. The best ones will be happy to talk you through the process, guide you to the best package for your particular business, offer additional services which you may find useful and answer any questions you may have. A good company formation agent can be an essential point of contact before, during and after your new company is registered. It is definitely worth taking your time investigating the various options in order to select the best one that can efficiently and effectively help you through the UK limited company formation process and beyond, especially if this is your first business endeavour.