More and more entrepreneurs are registering their business in the UK due to tax advantages and other benefits. The law allows some subscription models, but Ltd. preferable to PLCs and sole traders. Discover how to comply with local rules in 2023.
The easiest way to apply is through a UK incorporation assistant authorized by the FCA. The agency will do all the paperwork for you, providing the business account, debit card, and accompanying app. Here are the basics:
Advantages of Limited Liability Company
The main difference between a Limited Liability Company and other forms of registration is that there is no personal liability. If your business goes down, you won’t need to worry about losing your assets. A limited company is legally separate from the individuals who run and own it. Business finances are not linked to their personal accounts.
For comparison, sole traders are personally liable if their business goes bankrupt. As a result, their personal assets are always at risk. A third option, a public limited company, will allow you to sell shares to the public or appoint more than one director. Registration is more complicated.
How to register?
To form a Limited Company, you must go through the incorporation procedures, including registration with Companies House. Online services will save you time and effort, as you will delegate most of the work. Here are the main aspects:
- Choose a company name: in addition to ending with “Limited” or “Ltd”, your name must be unique. Similarities with other company names or offensive words are prohibited. You can check this through the House Company registry.
- Register a name as a trademark: prevent other businesses from using it.
- Specify a physical location in the UK for the business address. This can be your own home address or an address (virtual office) registered through an agent.
- Appoint at least one director and shareholder.
- Appoint a company secretary (optional).
- Create ‘regulatory details’ documents describing the business structure, rights and influence of all shareholders.
- Create an ‘memorandum of association’ showing the consent of all shareholders to form the company.
- Create ‘articles of association’ (governing rules) that are approved by all directors and shareholders.
- Register for corporate tax within 3 months of launch.
Register at the company House
Online and postal registration costs vary. The organization will also charge an additional fee for day service. To get the “certificate of incorporation”, you must submit the following documents:
- Company name;
- company address;
- the name of one/more directors;
- Designated shareholder(s) and their rights;
- SIC code;
- “memorandum of association”;
- “Article of the Association”;
- PSCs (those with significant control).
All-in-one Formation Pack
Register a business and open an account remotely via the Internet. If you decide to use the services of a cryptocurrency dealer, check that the dealer is authorized by the FCA.
Opening a single owner/director LLC is the easiest way. There are only a few requirements. You will first be asked to provide valid identification. Second, you need proof of residency (some companies also help non-residents open businesses). Finally, you need an address. That is all!
Also read: Make your business more customer-friendly
Categories: How to
Source: vothisaucamau.edu.vn
