Company registration isn’t complex in the United Kingdom (UK). This article will tell you all you need to know about registering a company and how to go about it.
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Registering a Company: What Is It?
Registration implies setting up a corporation as its own legal entity recognized by the government. Registering a firm before doing business is not compulsory, but it is advisable because it makes things easier. In some cases, it also gives you liability protection, as your personal assets will be safe even if anything goes wrong with your business.
Steps for Registering a Company
There are various steps to follow to incorporate a business. They are as follows:
1. Choose a Name
The first thing required is to select a name for your business. This name is what will differentiate you from other competitors, so take it seriously. Avoid names that are already taken or sound similar to established brands. You can check your state or country’s database of businesses to ensure you do not pick a name that is already taken.
2. Choose a Legal Structure
There are several structures to form a corporate entity. Limited liability companies (LLCs), partnerships, and sole proprietorships are the most common ones:
- Limited liability companies, as the name suggests, offer limited liability to the owners. Your personal assets are separate from the firm’s, and you would not be personally liable for any debt that the firm accrues
- Partnerships are when two or more people agree to form and manage a corporation. The partners are personally responsible for debts or legal proceedings against their business.
- Sole proprietorships are a one-person show, e.g., a plumber, electrician, welder, etc. The owner is personally liable for any debts or claims accrued by their firm, unlike with LLCs.
1. Choose a Place of Domicile
The UK consists of four countries: Scotland, Wales, England, Wales, Scotland, and Northern Ireland. You can register a company in any of them, but it is advisable to do that in the one you are based in.
2. File Registration Papers
With the three steps above settled, you can proceed to file papers to incorporate your firm. You will need to fill an IN01 form that requests details, including:
- Company name,
- Physical location,
- Registered office address (must not be the same as the physical location),
- Description of business,
- Legal structure
- Proof of capital,
- Details about the owners and directors.
You will also need to submit two important documents along with your application: a memorandum of association and articles of association. Memorandum is a legal statement signed by all shareholders declaring their intention to incorporate a firm. The articles refer to the agreed rules about running the business.
Once your application is ready, you will pay a small fee of between £12 and £40 to submit it.
3. Certificate of Incorporation
If your application is reviewed and approved, you will receive a certificate of incorporation confirming that your firm is formally registered with the government. This certificate will include your unique company registration number.
What Do You Have to File Each Year?
Every registered firm in the UK must file annual financial accounts with Companies House at most 9 months after the end of your firm’s fiscal year. You must also file an annual tax return with the HM Revenue and Customs (HMRC) at most 12 months after the accounting period the return covers.
Support for Business Registrations
If you need assistance in any part of the business registration process, Osome can provide great help. We can also help you manage administrative and reporting activities while you focus on growing your business, which is the most important aspect. Contact us to find out how we can provide assistance.
We have explained what you need to know about incorporating a business and the steps to take. Incorporation in the UK isn’t difficult, but if you face any challenges, you can consult Osome for help. Osome can also assist you in managing your administrative tasks while you focus on scaling the business.