Gone are the times when you had to fail paper-based forms, pay an exorbitant fee, or wait for weeks to get a company registered in the UK. The process has become simplified now. While some seek help from professionals or friends for registering a company, a majority of people now opt to take control of their company and register it themselves. Here is how to Register A Limited Company in the United Kingdom.
Do you want to start a new company? Are you wondering how you can register a limited company in the UK? Read on to find a complete guide to help you with the registration process.
Step-by-step guide for registering a company in the UK
Many entrepreneurs decide to focus on starting a company and keep the registration part for later on. It can often lead to complications and disrupt the workings of your company. If you want to avoid any trouble, it is best to complete your limited company’s registration at the right time with proper procedure. Here are seven easy steps to register a limited company in the UK:
Decide if a limited company is right for you.
There are numerous options available for you while starting a company. Before you begin the registration process, the first thing you can do is ascertain whether a limited company is right for you or not. If you register as a limited company, you possess most of an individual’s rights, and there is substantial protection for shareholders from business liabilities. But besides that, you will have to maintain company records, file accounts, and other documents with HMRC or Companies House.
You must carefully analyze all the pros and cons of registering as a limited and then figure out how to register a company as limited.
- Choose a name for your company.
Once you have finalized the business type, you will need to choose a name for your company. The name you choose becomes your business’s identity, making it imperative to pick the right one. It must not only be relevant to your business but also help your company stand out among the competition. Experts believe that naming the company is equivalent to laying the base of the business.
Keep these pointers in mind when deciding the company’s name:
- Must be short, easy to pronounce, and something that your audience can remember. Avoid using any complicated words.
- The company name must also reflect the mission statement and give an insight into what the business is.
- Ensure the name is unique and isn’t similar to any other comparable brand. It will help you avoid any legal complications later on.
- Having a company’s digital presence is a must in today’s world. Check if a website domain is available for the company’s name that you have selected.
Get a registered office
Your business needs an official address for the registration process. You will be receiving all the official notices or business correspondences at the registered office address. The office space you choose must be suitable for the business type and must also be approved by the authorities.
In many cases, people use their home address as the office of a company. If you want to operate your small company from your home, you must take prior permission from housing authorities. You can need to show a ‘No Objection Certificate’ or NOC during the registration process in the case of a rented property.
Gather information required for registration
You will require plenty of information and documents to be able to register the company. Make an extensive checklist of all the necessary information to get your limited company registered. It will most include information regarding:
- Company name
- Registered office address
- What the company plans to do, along with a SIC code that describes the company’s anticipated activities
- Details of share capital
- Company director and company secretary details
- Details of initial shareholders
Prepare Memorandum and Articles of Association
Documents like Memorandum and Articles of Association make up the constitution of the company. The Memorandum of Association is a short document that includes several clauses, and through its completion, the subscribers to the initial shares give their confirmation to start the company. This document is filed as a part of the company’s registering process with the Companies House.
On the other hand, the Articles of Association is a ‘rule book’ for your company. It defines how the directors must run the company on behalf of the shareholders. Both of these documents are submitted to the Companies House while registering the company.
File the incorporation
Now that all the information you need is ready, you can process with the actual process to register your limited company. You must send this information or documents to the Companies House. There are two different options for you:
- Through an online portal
You can create a Government Gateway ID for your company when you start the registering process. The standard fee for the entire process is £12, which you can pay through credit or debit card, or even use your Paypal account for it. Your company will get registered within 24 hours.
- Through post
If you want to opt for the traditional paper-based registering process, you will need to use the IN01 form. The fee for this method is £40, which you can pay through check. It can take anywhere from 8 to 10 days to get the applications processed.
Wait for approval
Until you get the approval from Companies House, you cannot start your limited company’s operations. The authority will check the information you’ve provided and then make a decision. If you decide to file online, you can get the approval within a day, but the postal method may take a few days.
When it comes to starting a company, entrepreneurs usually focus on growing their business. While it is wise to plan to facilitate the company’s growth, the registering process is also crucial. If you plan to set up your own limited company in the UK, you must follow the complete process as given above. It will help you start your entrepreneurial journey smoothly.