By Looking to register your company in the UK? You may not even need to live in the country. But you must make the registration to an address in the UK. This is the reason why anyone of any nationality can register a company and scale it in the United Kingdom.
The registration process typically involves providing important personal information, such as your parent’s name and any valid identification document.
In this article, I talk about the 5 most important criteria for starting your company in the UK:
1. Decide on a UK Company Name
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What name shall we call your new company? You see, the name of your company is very important because it is what the public will use in recognizing the brand.
Here are some tips to help you choose the best name for your UK-Based company:
Make a Name Search
Start by making a name search. You are doing this to be certain that another business is not already existing with that name. You can use online tools like Namecheap and Bluehost to make the name search. With Bluehost, you will be able to register the preferred name as a domain name so you can use it to set up your company’s website.
Stick to a Brandable Company Name
Aside from the product or service your company offers, it is also a brand. As a brand, it should be easy for people especially the target market to remember that it exists. What can be a better way to do that than to make the company’s name “brandable?”
By brandable, I mean that the name should:
- Be punchy or short.
- Easy to spell.
- Meaningful: The name should convey what your business is all about.
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2. Choose a Structure for the Company
The next step is to choose a structure or business identity for your company. According to Gov.UK, the most common business structures are Partnerships, Limited Companies and Sole Traders.
If you intend to run the company as a Partnership, it means that you are running it with someone else. Typically, both you and your partner will share the responsibilities of growing the business, as well as taking care of the accounts and debts.
Under the Sole Trader business entity, you are the only one that shares the accounting responsibilities. You will also be responsible for overseeing the daily operations of the company.
But if you are going for Limited Company (which is the most popular), you will be separating the revenue of the company from your personal finance. Also, the company must be registered with Companies House.
Registering your company with Companies House only takes 24 hours (a business day) and costs £12. The payment can be made with either your credit or debit card.
Specific information about you and your shareholders will also be required. The data includes:
- Passport number
- Town of birth
- National Insurance Number
- Your mother’s maiden name
- Telephone number
- Your father’s first name
The Companies House registration is just one out of the different ways of registering a Limited Company in the UK. If you don’t want to use the word “Limited” in the company’s name, consider making the registration by post.
The application for the company registration must be addressed to the address on the IN01 form. Also, you have to make out a check of £40 to Companies House being payment for the postal registration of your company.
The timeframe for the registration is anywhere between 8 days and 10 days.
3. Provide the Company Information
Companies House will want to have information about the new company you are registering. You will be required to provide the following as part of the requirements to complete the registration:
Company Name
That is, the name of the company you wish to register. You must have completed the name check and be sure that it is available before submitting the name for registration.
Company Type
What is your preferred business entity? Limited Company is the most common, though you can also choose between a Partnership and Sole Trader.
Registered Office Address
Even if you are not in the UK, the company you seek to register must have a physical location. The registered office address is relevant because that is where the HMRC and Companies House will send official emails.
Share Capital Information
Information about the company’s shares will also be needed, as the business is operating based on limited shares or ownership. The share capital information required includes but is not limited to:
- The number of shares the company has.
- The value of each share.
- Shareholder’s information, such as full name, date of birth and residential address.
Company Directors
Companies House will also ask you to provide the names of the company’s directors, at least one. The full name, date or birth and place of residence will also be required. The director(s) must be up to 16 years and above. The person(s) must also be in stead to be legally responsible for most of your company’s activities in the United Kingdom.
4. Complete the Necessary Documents
Some documents are required to register your company in the UK. These include:
Memorandum of Association
This document is used to specify the name and registered office address of the company in the UK.
The Memorandum of Association is also used to spell out the objectives and or goals of your company in the UK.
Article of Association
This document highlights the rules and regulations, as they pertain to how your new company is to be run or operated in the United Kingdom.
Both the Memorandum of Association and the Article of Association are documents that formalize the rules upon which the company is run. The shareholder(s), company director(s), and a company secretary must sign the documents to indicate that they are committed to keeping to those rules. Without their signatory, you wouldn’t be able to register your new company in the UK.
5. Submit Everything to Companies House
With the business structure in place and the necessary documents provided and signed; you can now submit your company registration application to Companies House.
Depending on the process you used, the approval time can be shorter or longer. For example, if you are looking to get same-day registration approval, consider submitting the documents directly to Companies House. It can take up to 24 hours for the registration approval to be granted. However, it can take up to 10 days if you are making the application via the IN01 form.
Conclusion
Both nationals and foreigners can register a new company in the UK and start operating almost immediately. Do well to form a business structure, add directors, and at least a company secretary, and allocate shares to help speed up the registration process.
