Setting up a Company

The process of company set up in the UK has undergone a sea of change in the past few years. The procedure has been streamlined and information on how to set up a company is now easily available. The biggest change has been that the process can be handled online at companyformations247.co.uk, which has worked to lower company set up costs and reduce the time taken.

Companyformations24.7 has been in the company formation business for over 25 years and can handle the entire process of company set ups, right from selecting a company name, filing documents, appointing a solicitor, and completing the registration process and all the other details of setting up companies in the UK.

The company set up process depends on what kind of company is being formed. The choices range between limited company, partnership, or sole trader. While the process involved in a partnership company and in being a sole trader is quite simple, the risks associated with these formats are much greater. Do remember to create a partnership agreement, which states what each partner brings into the business.

In a limited liability company, the risks are not your own beyond a certain stipulated amount and this is a huge advantage when it comes to business. For all limited companies, it is also required by law to file annual returns at Companies House, and Inland Revenue must be informed when the company has taxable income or profits. This format of company set up is the most popular in the UK, after sole traders.

Where at one time the entire process was done manually, today a large part of the applications are submitted electronically to Companies House, the agency with which all limited companies in the UK must be registered. Now the procedure can be completed in less than 24 hours, if all the documents are in order and there are no delays at Companies House.

There are some important points to keep in mind when understanding how to set up companies, such as ensuring that the company name selected does not contain any ‘sensitive’ words such as those associated with the government. Certain words require approval from the Secretary of State and one will also have to provide additional documentation to show why the word must be included in the company name.

The process of registration with Companies House requires just a few documents, including the Memorandum of Association, which contains details about the company name, type of business and location, Articles of Association, which has details about the Directors and shareholders, Form 10, which gives names and addresses of the Directors and Company Secretary, and Form 12, which is an undertaking that the company complies with terms set by Companies House.

Although the process of a company set up in the UK is not cumbersome, it definitely can be confusing for first time business owners. Therefore, it is often a better idea to let a company formation agency such as companyformations247.co.uk handle the complete process.