Do you want to create a new company of your own? If yes, this article will provide you with all the important information you need during this process. Company formation process will include a lot of different steps that should be executed in accordance with the laws of the UK. The Company formation process starts with some important points you need to know:
1. Requirements for Company formation:
To create a new company, it is important to register the name with the Companies House. This registration process is known as incorporation and for completing this process, you will need the following things:
- A company name that is unique
- A specific company address within or outside the UK (depends on the nature of the company)
- Name of at least one director
- Details of all the shareholders and shares of the company (minimum quantity of shareholders is one)
- The details of an SIC code with the help of which the nature of your company will be identified
- A legal policy system on which all of the shareholders must agree
- Details of the people who has significant control over the working of your company (a person with more than 25% of share will be included in this list).
After completing all the above mentioned requirements, you will be ready for the Company formation process. Within this process, you have the option to run your business as a private limited company. If you get it register as private limited company it will mean that the company:
- Has different set of finances from your personal ones
- Is separated in a legal way from the people who manage it
- Is eligible to keep any earned profit after the payment of necessary expenses and tax
2. Selection of name:
The next step in the Company formation will include the selection of the name. The name will be selected in a way that it fulfills the requirement of the company as well as it should not match or imitate someone else. In the case of any similarities either in the meaning or pronunciation, the already existing company is allowed to file a complaint. If the Companies house finds any issues in the complaint, you will have to change the name. Moreover, the name of the company should not hurt the feeling of anyone. It should not be stated in an offensive way.
3. Registration of the company:
After the selection of the name and address for your company, the next step in the Company formation process includes the registration stage. There are two different ways in which you can get your company register. The first way of doing it is online. The second option is to register your company by sending all the required documents through the post.
This was all you needed to know about the Company formation process. Make sure that you follows all the rules and regulations explained in the law of the UK.