Thinking of expanding or moving your business to the UK and want to understand the intricacies of starting a limited company in UK? We know how the lower corporate taxes and business-friendly tax benefits make the UK a smart choice for entrepreneurs to start a limited company. On top of that, this place offers an excellent opportunity to secure assets, expand your business, and build a strong reputation among your customers. So, let’s look at how to start with company registration in UK!
9 Steps to Start a Limited Company in the UK
1. Choose a Type of Limited Company
Select the limited company that best fits your needs before registering a business.
- A private Ltd company is perfect for small to medium enterprises, offering limited liability to shareholders while keeping shares privately held.
- A public limited company (PLC) is ideal for businesses of all sizes; a public limited company offers the benefit of raising funds by selling shares to the public.
- The third option is ideal for charitable and non-profit entities; a company limited by guarantee focuses on using profits to further the organisation’s goals and community impact.
2. Select the Name of Your Company
Research thoroughly and choose a company name that complies with UK regulations. Ensure the name isn’t already taken, doesn’t infringe on trademarks, avoids offensive terms, and ends with “Ltd” for private limited companies.
3. Appoint Directors and a Company Secretary
A minimum of one director is required for every limited company. A company secretary is required for public limited corporations but optional for private limited companies. The duties of a corporate secretary include running the company, managing important papers, filing reports, and performing other administrative duties.
4. Register an Official Address
The address must be located in the UK. It will appear on all business documents and serve as the official address for receiving all legal correspondence. Any legal paperwork or official documents will be sent to this address.
5. Prepare Your Documents
Submit a Memorandum of Association, signed by all initial shareholders or guarantors, and provide Articles of Association detailing company operations, decision-making rules, director powers, and shareholder rights.
6. Register with Companies House
In the UK, you can apply online or through the postal service. The fee for registering online is £50 and takes nearly a day. Postal registration takes 10 days and costs £71. Include the company name, registered address, director details, shareholder information, and personal details like town of birth, mother’s maiden name, father’s first name, phone number, passport number, and National Insurance number.
7. Register to HMRC for Corporation Tax
Before starting your business, you must register with HMRC. It’s the UK government department handling tax collection. You could face penalties if you don’t register, so getting this step right is essential. Plus, registering makes your business eligible for tax reliefs, allowances, business support schemes, and more.
8. Set Up a Business Bank Account
A business account is a good way to separate your personal and business finances. You will require identity, address proof, and company registration paperwork to open a UK bank account.
9. Maintain Company Compliance
You must file a confirmation statement to ensure your company information is current, submit annual accounts to Companies House, and finish yearly tax forms for HMRC.
Conclusion
Follow these simple 9 steps to set up a limited company in UK. Moreover, if you need more help with company registration in UK, contact E-Startup for hassle-free registration.