A Guide to Company Registration in the UK
The continued economic and political prosperity of the United Kingdom makes it one of the most prosperous commercial centers in the world. The country has more than 2.60 million registered companies. Conditions for doing business in the UK are extremely cooperative and encouraging. It originated from a government initiative to help entrepreneurs register a business in the UK in a simple and convenient way.
The first and most important step in registering a company in the UK is to obtain a UK physical address. This may not be a problem for natives, but foreign companies may need to find a temporary office address before they can establish their office.
Also, it is very important to understand the category under which you can register to conglomerate; There are various headings under which one categorizes their business. These are: Private Company – Limited by Guarantee, Private Unlimited Company, Limited Company and Private Company – Limited by Share. The registration process is not complicated in the UK and entrepreneurs can handle it themselves, however it is always advisable to hire an agent or seek professional assistance for this. Also, if you decide to go through the electronic filing process instead of the conventional manual process, you must hire a company formation agency.
A UK registered company is an officially licensed entity with an individuality separate from those who own or control it. Most corporations are limited liability companies which means that the liability of the partners is limited by guarantee or shares. Other business houses are unlimited companies, indicating that members have unlimited liability. One or more persons may form a corporation for any legal or legitimate reason by subscribing their name(s) to the articles of incorporation and meeting the legal requirements for incorporation. The people who sign their names in the articles of incorporation are called subscribers. In legal terms, ‘person’ includes individuals, companies and other conglomerates.
Once you know what heading to register your business under, the next step begins with selecting a name for the business entity. The name must be distinctive and must not resemble any other existing corporate name. It is suggested that you go for a name that conveys the type and nature of your organization, while sounding impressive at the same time. Giving your business an apt is imperative as it not only communicates the nature of the business but also leaves a positive or negative impact on consumers. Also keep in mind not to use phrases and words that are prohibited by law or that may be controversial.
After this, you must complete forms 10 and 12. Form 12 requires the presence of a notary, proctor and commissioner of oaths or a justice of the peace before it can be signed. The Memorandum of Association presents the address and name of the corporation along with the assets and liabilities of the company. The Articles of Incorporation explain the structure of the company and address the company’s policies regarding voting and other activities that administer the function of the company. As expected, this form must also be signed by the shareholders. These forms must be duly completed and signed and submitted to the House of Companies for evaluation.