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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in United Kingdom

Why Register a Company in the United Kingdom?

Register Company in United KingdomThe United Kingdom is an island nation located in Western Europe. Informally referred to as Britain, the United Kingdom is a sovereign state that includes England, Scotland, Wales, and Northern Ireland. Many agree that the United Kingdom is one of the economy drivers in Europe and it is often cited as the hotbed for foreign investments. In fact, the United Kingdom is one of the accesses for foreign investors to gain a foothold in the vast European market.


How to Register a Company in the United Kingdom?

The United Kingdom ranks as the seventh-most business-friendly country in the world in World Bank Group’s Doing Business report in 2016. As a matter of fact, the UK is currently the easiest place to register and do business in Europe where it takes less than two weeks to set up a business in the UK if compared to the European average of more than a month.

Let’s have a look at how to register a company in the United Kingdom.

  1. Decide the business types

    Three business types available in the United Kingdom:

    • Sole traders – A sole trader runs his or her own business as an individual. In other words, they are self-employed.
    • Limited companies – The limited companies are among the most popular types of business structure. The financial liability of the shareholder or the owner of this type of company is limited to the value of their shares or, for a company that is limited by guarantee, their guarantees. In other words, the company owners are not liable for any business debt beyond the values of their shares [or guarantees].
    • Partnerships – It is the simplest way for two or more people to run a business together.
  2. Name the business

    Do a name search for the proposed company name to check the availability. The approval from Companies House [of any name that is proposed] is mandatory.

  3. Prepare all the documents needed

    The information needed for the company registration is as follow:

    • The approved company name
    • A valid and registered office address in the UK
    • The trade activity ( what the company plans to do)
    • The details of the share capital (for a private company limited by shares, at least one share must be issued)
    • List of company director and company secretary details ( at least one director aged 16 and above is required for a new private limited company)
    • The details of initial shareholder (at least one initial shareholder is required for company registration, he or she can be the same person as a company director)
  4. Prepare Memorandum and Articles of Association

    The memorandum and articles of association include a number of standard clauses and the subscribers to the initial shares confirm their agreement to start a company. Please note that the memorandum of association must be filed with Companies House as part of company registration.

  5. File the incorporation

    All documents need to be submitted to Companies House for approval. In the UK, there are three different options (with different fees each) to submit the documents:

    • Online filing through dedicated software
    • Web incorporation through Companies House’s online portal
    • Paper filing the IN01 form

    You can start to operate the business as a limited company after you receive the approval from Companies House.

  6. Register for Corporation Tax

    Your company will need to register for Corporation Tax after the registration with Companies House. You have three months for tax registration once you have started your business operation.

  7. On a final note

    As one of the world’s oldest (and largest) financial centres, the UK is definitely one of the key drivers of both European and the world’s economy. In fact, the UK gains its traction as one of the preferred investment hot spots due to its strong economy. If you are thinking of investing in European countries, the UK is the ideal country for you to gain a foothold.

Register Company in United Kingdom

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