More and more entrepreneurs are registering their business in the UK due to tax breaks and other benefits. The law allows for various registration models, but LLCs are preferred over PLCs and sole traders. Find out how to comply with local regulations in 2023.
The easiest way to register is through an FCA authorized UK company incorporation assistant. The agency will do all the paperwork for you, secure a business account, debit card, and application along with it. Here are the basics:
Advantages of a limited liability company
The key difference between a doo and other forms of registration is the absence of personal liability. If something goes wrong with the business, you won’t have to worry about losing your assets. A limited liability company is legally separate from the people who run and own it. Corporate finances are not linked to your personal accounts.
By comparison, sole traders are personally liable if their business fails. Therefore, your personal property is at risk at all times. A third option, a limited partnership, will allow you to sell shares to the public or appoint more than one director. Registration is more complicated.
How to register?
To establish a limited liability company, you must go through the incorporation procedures, including registration with the Commercial Registry. Online services will help you save time and effort as you will delegate most of the work. These are the key aspects:
- Choosing a company name: In addition to ending in “Limited” or “Ltd,” your name must be unique. Strong similarity to other company names or offensive words is prohibited. You can check it in the company register.
- Register a name as a trademark: prevent other companies from using it.
- Determine a physical location in the UK for a business address. This can be your home address or an address (virtual office) registered through an agent.
- Appointment of at least one director and one shareholder.
- Appointment of company secretary (optional).
- Drafting ‘prescribed information’ documents describing the business structure and the rights and influence of each shareholder.
- Creation of a ‘partnership memorandum’ that expresses the consent of all shareholders to establish a company.
- Drafting of ‘Articles of Incorporation’ (rules of government) approved by all directors and shareholders.
- Registration for income tax within 3 months of start-up.
Registration in the Commercial Registry
The price of registration online and by mail is different. The institution will also charge extra for its service on the same day. To obtain a “certificate of incorporation” you must present the following:
- Company Name;
- Company address;
- name of one or more directors;
- nominated shareholder(s) and their rights;
- SIC code;
- “association memorandum”;
- “Social contract”;
- PSC (persons with significant control).
All-in-one training package
Register your company and open an account remotely online. If you decide to use the services of an electronic money agent, check that they are authorized by the FCA.
Opening a limited liability company with one owner/director is the easiest way. There are only a few requirements. First, you will be asked for a valid identification document. Second, you need proof of residency (some companies also help non-residents start businesses). Finally, you need an address. That’s all!
Also Read: Make Your Business More Customer Friendly
Categories: How to
Source: HIS Education