If you have decided to start a new company, you may wonder about the legalities of the process. What steps do you need to take in order to legally begin trading? While there are many who choose to enlist the assistance of their accountant or attorney for company registration, and even more who have chosen to work with a company formation agent for this process, there are some new company owners who choose to do things on their own. If you have decided to register your own company in the UK, there are certain steps that you will need to take in order to get this done.
Company formation in the UK requires you to undertake a few steps before you are officially a company. First, you will need to determine the type of company that you are going to start. Will it be a sole trader, a partnership, or do you need to register a limited company? If you are starting up a limited company, there are steps that need to be taken that you do not need to take in order to start up a sole trader or partnership company.
Once you have determined that you need to register a limited company and you have chosen a suitable business name, you will need to get a few things together in order to begin your company registration. You need a company name, one that will be approved by Companies House, as well as a UK registered office address, and information regarding your director or directors and your company secretary. You are required to have at least one person over the age of 16 to act as director for your limited company. You also need at least one initial shareholder and this can be the same person as your company director.
One you have all of these details ready, you need to draft your memorandum and your articles of association. These are documents that every limited company must have that make up the constitution or policies of your company. You must file these documents with Companies House as part of the registration process.
When you have all of your supporting documents ready, you can file the incorporation with Companies House. If you are working on your own and not using a company formation agent, you will need to ensure that you have all of your paperwork ready to send, and this can be done online or through post. Note that the fees for company formation through post are a bit higher and the process of incorporating in this manner takes a bit longer than if you do it online.
Once you have filed for incorporation, you just have to sit back and wait for Companies House to approve your application. The governing agency will verify your information and inform you of whether or not your company has been approved. Once this approval arrives and you have the certificate of incorporation, you are permitted to begin trading under your new company name. There are of course, other things that you will need to do before you begin trading, but these steps get you ready to begin.