More and more entrepreneurs are registering their business in the UK due to tax breaks and other benefits. The legislation allows various models of registration, but Ltd. is preferable to PLCs and sole traders. Find out how to comply with local regulations in 2023.
The easiest way to register is through an FCA-approved UK start-up assistant. The agency will do all the paperwork for you, provide you with a business account, debit card, and an application to go with it. Here are the basics:
Advantages of the Limited Company
The key difference between Ltd. and other forms of registration is the absence of personal liability. If something goes wrong with the business, you won’t have to worry about losing your assets. A limited partnership is legally separate from the people who run and own it. Corporate finances are not linked to your personal accounts.
By comparison, sole traders are personally liable if their business goes under. Therefore, your personal assets are at risk at all times. The third option, corporation, will allow you to sell shares to the public or appoint more than one director. Registration is more complex.
How to register?
To establish a Ltd., you must go through the incorporation procedures, including registration with the Commercial Registry. Online services will help you save time and effort as you will be delegating most of the work. These are the key aspects:
- Choosing a company name: In addition to ending in “Limited” or “Ltd,” your name must be unique. Resemblance to other company names or offensive words is prohibited. You can verify this through the House of Companies registry.
- Register the name as a trademark: prevent other companies from using it.
- Specify a physical location in the UK for the business address. This could be your home address or an address (virtual office) registered through the agent.
- Appoint at least one director and one shareholder.
- Appointment of a company secretary (optional).
- Create ‘required information’ documents that describe the business structure and the rights and influence of each shareholder.
- Create a ‘partnership memorandum’ that expresses the consent of all shareholders to start the company.
- Creation of ‘association statutes’ (management rules) approved by all directors and shareholders.
- Register for corporate tax within 3 months of launch.
Register in the Commercial Registry
The cost of registering online and by mail is different. The institution will also charge extra for its same day service. To acquire a “certificate of incorporation”, you must present the following:
- Company Name;
- Company address;
- name of one or more directors;
- nominated shareholder(s) and their rights;
- SIC code;
- “association memorandum”;
- “statutes”;
- PSC (persons with significant control).
All-in-one training package
Register your business and open an account remotely over the Internet. If you decide to use the services of an electronic money agent, check that they are authorized by the FCA.
Opening a limited company with one owner/director is the easiest way. There are only a few requirements. First, you will be asked for a valid identification document. Second, you must prove residency (some companies also help non-residents open businesses). Finally, you need an address. That’s all!
Also Read: Make Your Business More Customer Friendly
Categories: How to
Source: vtt.edu.vn