The United Kingdom allows residents and foreign nationals to register businesses on its soil. They may register as sole traders, create PLCs to sell shares or set up limited companies. Learn about the fundamentals of establishing your brand in the UK in 2022.
Technological advances have transformed business registration. Forget tedious paperwork and in-person visits! An FCA-approved agent like https://gosolo.net/ can register your limited company remotely in less than a week. You will also get a business account, a debit card and an app for your team.
As the term suggests, owners of limited companies do not worry about their personal assets if something goes wrong. Even in the event of bankruptcy, they can only lose the money they invested in their enterprise. An Ltd. is legally separate from its owners and directors.
When sole traders fail, their assets are on the line. Their personal liability is unlimited at all times.
Note that neither limited companies nor sole traders can sell shares to the public. If you are planning an IPO, set up a public limited company. Registration of PLCs is more complex.
How to Set Up a Limited Company
Limited companies are incorporated by Companies House. You can hire an agent and submit all documents remotely. You will be asked for a valid ID, an address and proof of residence. Online services help applicants save time and effort. Your agent will require:
● A unique company name. It may end in “Limited” or “Ltd”. You can check the guidelines on the Companies House site.
● Physical address in the UK. Residents can provide their home addresses. You could also rent an address or buy a virtual office location.
● Director(s) and shareholder(s). The owner of a limited company can act as both.
● Prescribed particulars. These documents describe your company’s structure, shareholders’ rights and roles.
● Memorandum of association. It expresses shareholders’ consent to launch the company.
● Articles of association. These are rules of management approved by all directors and shareholders.
Inclusion into the Companies House database will protect your business name. As an additional precaution, consider registering it as a trademark. Within 3 months after establishment, you will have to register for corporation tax.
What Companies House Requires
There are two ways to obtain a certificate of incorporation. Entrepreneurs can apply online or by post, and the costs differ. For an additional fee, your business may be registered on the same day. Companies House requires the following details:
● Company name;
● Business address;
● Names of all directors;
● Names and rights of nominated shareholder(s);
● SIC (Standard Industrial Classification) code;
● Memorandum of association;
● Articles of association;
● People with significant control (those who own and control your company).
How to Register Online
Find a trusted agent and spare yourself the hassle! Choose an intermediary authorized by the FCA. Companies like Go Solo offer 3-in-1 packages: they will register your business on your behalf, open a business bank account and provide a finance management app.
Your agent will liaise with UK authorities and guide you at every stage. You are just a few days away from becoming the owner and director of your own limited company!