Registering a company in the UK and Ireland is now easier than ever before. While some people still ask their solicitors or accountants to handle the formalities of registering a company with the Companies House (the United Kingdom’s official registrar of companies), a growing number of individuals today are opting to take matters into their own hands by handling the registration process on their own.
If you are the type of person who prefers registering their own company, then you’ve come to the right place. In this post, we will be looking at what it takes to incorporate a business in the UK and Ireland so you have an easier time setting up your company. Read on to learn more.
1. Consider the type of company you want to form
Before you even start the process of registering a company, you need to first consider the company structure you’d like your business to take – and one of the best and most common options is a private limited company.
The good thing about this structure is that it offers effective ways of managing tax. For example, as the director of the company, you are allowed to draw part of your pay from company dividends, hence paying lesser income tax. Apart from that, personal assets (things like your car and house) are protected from risk in the event the business falls into financial trouble. I would recommend using a reputable company such as Fusion Company Formations to register your new business properly.
2. Come up with a unique name for your company
A unique company name can be a major asset to any business. However, many people don’t spend enough time considering the name they’ll give their company and end up regretting later.
It’s worth noting that several rules govern what one can choose as a company name when registering a new company – with the most important one being that the name should be different from that of any other company registered in the UK. Before you can use the company name you’ve thought of, it must, first of all, be approved by the Companies House.
3. Gather all the details required to register the company
To register a company in the UK, you will need to have several pieces of information on hand. Here is a list of some of the key information Companies House will require before it incorporates your business:
- A registered office – that is, the address where HMRC and Companies House will send mail to and should be in the United Kingdom.
- Company directors – the company you are registering must have at the very least one director. It’s worth keeping in mind that Companies House will want details about their residential address, name, and date of birth.
- Shareholders – for a company to be registered, it must have, at the very least, one shareholder (that could be the same individual as the director) of whom Companies House will want details about their residential address, name, and date of birth.
4. Prepare Your Company’s Memorandum of Association and Articles of Association
The articles of association and memorandum collectively make up a company’s constitution.
When subscribers of a company’s initial shares complete the memorandum of association (a brief document that includes several clauses), they confirm their agreement to formally incorporate a company. On the other hand, Articles of Association are considered to be a company’s “rule book” and define how the business should be run by the elected director(s) on behalf of the company’s shareholders.
Both of these documents are part of the registration process and must be filed with Companies House.
5. File your incorporation and wait for approval
Once you have collected all the information required to register your business, the next step is to send it over to the registrar of companies for approval. It’s worth noting that there are three options when it comes to sending your details over to Companies House for review and approval.
One option would be to use a dedicated online filing software to file your incorporation for a £10 fee. The other option would be to visit Companies House’s online portal and filing your incorporation for a £12 fee. The last option involves filling out and sending the IN01 form to Companies House via post – this option comes with a £40 fee and may take up to five working days to get approved.
Since you cannot start operating your business until you’ve received approval from Companies House, make sure you consider the channel you use to file your incorporation. Filing online has proven to be the most effective considering that most requests get approved fairly quickly using this option.
So, you’ve been approved, what next?
The first few things you do as a newly-approved company will determine your future as a business. The next step may be to get your online side of the business up and running and getting a web management company on board to deal with the digital side of things. Here are a couple of things you should consider doing in the first few days of your company’s existence.
Set up registers for your company
Once your request for incorporation has been approved, the next thing you need to do is set up and maintain company books – all companies are required by the law to do so. Registers you are required to maintain include:
– Register of Share Transfers
– Register of Allotments of Shares
– Register of Directors
– Register of Secretaries
– Register of People with Significant Control
– Register of Directors’ Residential Addresses
– Register of Mortgages & Charges
– Register of Shareholders
Make share certificates for the company’s first shareholders
If the company you just incorporated has more than two shareholders, one of the first things you need to do as a business is to hold the very first board meeting. As the director, make sure you authorise the issuance of share certificates for those with a stake in the company.
Other tasks to perform after registration
There are a few crucial tasks that you will want to consider undertaking once your business has been successfully registered to ensure it operates without hitches. Make sure you do the following things before they come back to haunt you in the future.
– Open a business bank account
– Register for VAT
– Register with Her Majesty’s Revenue and Customs
– Register and set up Pay As You Earn for employees
– Set up a business website and social media pages, i.e., if you’d like to be found online
– Register your trademarks if they are a crucial part of your business
