When you are thinking of starting a new business in the UK, there are several factors to consider in the setup process. One of the most important things you will need to do is to register your business as a legal entity in the UK. To do this, your company needs to have a name that is different from other companies’ names, then you can pay an agency to register the formation of your business, and finally, you can register the company details, such as who the directors and shareholders are. For more information on this process, read this helpful and simple guide to starting up a new limited business.
Starting A New Business?
When you are launching a new small business in the UK, one of the first key steps is to register the business as a recognized legal entity in its own right. Forming a company is the legal process of incorporating a business in the form of a limited company. When a new business is registered, it becomes a separate legal entity. It is then completely distinct from its owners and responsible for its own finances, assets, and liabilities.
What Is A Limited Business?
If you own a limited company, this means that your assets and income are separate and distinct from the company’s assets and income. This is known as limited liability. In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. This is in contrast with unlimited companies, in which the creditors can use the personal assets of the directors and shareholders in order to pay off the liability if formal liquidation occurs and the company is unable to pay off its debts. With an unlimited company, there is no limit to the losses that owners and investors could suffer.
How To Register Your Business
The formation process is reasonably quick and simple and takes just a few steps. The first step is settling on a name for your company, followed by choosing a formation package from a provider, and finally, once you have paid the fee, register the details of the company. Once you have settled on a name and know the details of your company, the registration process will only take from three to six business hours.
Choose A Company Name
The first step is to name your company, and this can take some thinking. Make sure your business name says what you want it to say about your services. The name should be catchy, easy to spell and say aloud, convey some meaning and not limit the growth of your company, by focusing on one product, service, or location.
You cannot give your company the same name, or too similar a name to, that of another registered company. Whatever business name you choose, Companies House requires that a limited company has at the end of its name either “Limited” or, “Ltd” as an abbreviation. There is no difference between the two choices aside from how they appear when written.
Various Packages Available
Depending on your new business needs, you can find formation plans from as low as fifteen pounds plus VAT to more comprehensive plans with more features involved at over one hundred and fifty pounds plus VAT. These prices include a twelve pound registration fee paid to Companies House. The basic plans include being registered as a private limited company and digital company documents. You can pay more for a London registered office address, service address, VAT registration, and a business address and mail forwarding. Find a package that suits your company’s needs.
Register Company Details
Once you have picked your name and package, you will need to officially register the company’s directors and shareholders. The director is the person responsible for the day-to-day running of your business. This can be anyone who is above the age of 16 and comes with significant responsibility. If the company breaks the law, then the director may be held accountable. You can have the same person be a director and a shareholder of a company.
You also need to register who your shareholders are. Shareholders are the owners of a company. They can be individuals, a group of people, a partnership, or another legal entity such as a company or corporate body. Shareholders own shares in the business, which entitle them to receive a percentage of any profits made. Most shareholders can also weigh in on important company issues, such as the appointment of new directors.
Find A Trusted Formation Agent
When choosing your formation agent, or the service that will register your company, you should look for a Companies House authorized agency. Make sure they have evidence of strong communication on their website, such as an online customer portal where you can ask questions. They should also offer free support if you need help registering your business. And finally, some agencies also offer other useful services, such as free business banking, which you might find useful. Find a formation agent you trust to register your business quickly, and for a good price.
Get Started!
This has been a simple but, hopefully, useful guide on how to register your company as a legal entity in the UK. This is an essential first step in setting up a new limited business. To do this, you first need to choose your company’s name, ensuring it is not already in use and that it serves you well. Then, you can choose a formation package that suits your needs and the needs of the business. Finally, once you have paid the small setup fee, you must register the director and shareholders of the company. Make sure to do all of this with a good formation agent. If you follow this guide, you should find that this process is relatively quick and painless. Once your new limited company is registered, you will be good to go! Now you can get started on running your business.