Business Registration in the UK is a vital step as businesses want to establish themselves because of the prominent business history it has. Several factors have led to such prominent history; these factors include extreme competition, advanced technology and the incentives provided by the UK government to the businessmen.
Therefore, for successful recognition of our business, you need to register your business under the Companies House in the UK and also know the procedure for registration of a company in the UK.
Authorities governing the registration process
The primary body to regulate the registration of companies in the UK is the Companies House. The Companies House has fixed the minimum share capital that the owners require before starting their business. If they do not have the minimum share capital, then they will not be able to establish their company in the UK.
FCA which stands for Financial Conduct Authority manages the financial and other policies excluding the monetary policies in the country of the UK. The monetary policy in the UK is managed by the Central Bank that is the Bank of England.
How to Register a Business in UK?
- There are various steps in the registration process of a company in the UK as firstly you need to decide the type of business you want to start in the UK. There are various options present before the businessmen to finalize the types of business according to their needs, choices and demand.
- You can start a sole trading business which means that you will be the single owner of the business, or you can start a partnership company or a social enterprise. You also have the option to start an overseas company.
- The owners also need to decide whether they want to start an overseas company or a UK company as in the case of a UK company, the rules and regulations to be followed are different from an overseas company. A UK company will have to comply with the domestic rules of the country also.
- Then, you need to select a company structure. It means you need to decide whether your company will be unlimited liability or a limited liability company. People of the UK mostly prefer a limited liability company as they need not keep their assets at stake for the repayment of debts.
- After selecting the company structure, now you need to finalize the name of your business. The name should comply with the rules of the Companies Act, 2006 and the Trademark Act.
- To get an idea of your business name, you can research your competitors’ business names and get an idea for your own business name. But the owner keeping the name of the business should keep in mind that the name should be easy to spell and it should be short enough to grab the attention of the prospective customers.
- Then, you need to provide the details of your business to the Companies House. This information will also be available to the general public.
- The information will include the address of your registered office where the Companies House and the HMRC can send emails, according to the Companies House; the registered office should be present in the UK and should be within their reach.
- Then you need to tell the name, address and date of birth of your company’s director to the Companies House. The legal law in the UK has made a rule that a business company should have at least one director. The directors are responsible for managing the operations of the business and according to UK law; every director should be more than 16 years. Then you also need to provide details of the shareholders of the company.
- A company should have a minimum of one shareholder and the shareholder and director of the company can be the same individuals. While disclosing the address of your office, you should keep in mind that if you are not comfortable with making your residential address public, then you should have a separate address for your business.
- After registering the company, you need to allocate the shares of the company to the shareholders. Then, you need to collect various documents such as the MoM and AoA from the Companies House.
- After collecting, the shareholders, company directors and the secretary need to sign these documents. Lastly, you will have to submit all these documents to the Companies House.
Necessary documents for registration
There are various documents that the businessmen need to submit to the Companies House. These are MoM, AoA, Residential address, Visa, Passport, Details of the Shareholders and Management of the Company and also the Name of the Proposed Company.
Benefits of company formation in the UK
A person after registering the company in the UK gets to enjoy the benefits of policies laid by the UK government in the interest of companies. They will get finance from the government; get technological benefits with minimum expenses and also the government provides them with incentives to grow their business.
The government will also provide them opportunities to raise finance for their business from various banks. The advanced technology pieces of equipments will help the business to increase their output and minimize their expenses.
Also, the companies that are registered in the UK get several opportunities to grow within the country and internationally also. Since the UK has good relations with the USA and European Union, the businessmen with the help of the UK government get enormous opportunities to expand their business.
Online as well as offline registration, both options are available. The offline process can take a few days but the online procedure takes 24 hours for completion and then your company will be registered in the UK.
The government of the UK has made registration of a company a simple process so that the new start-ups can easily register. Also, the businessmen need to comply with the requirements of the Companies House, and then their company will be registered within a few days.
