Firm creation is the procedure of registering your company with companies house, the official registrar of companies for the UK government, as a limited company. It is the only entity authorized to formally incorporate a company in the UK. You can turn your firm into a separate legal entity by incorporation. That implies that, in terms of the law, your business is effectively an individual person. This is crucial since it will give you the security you need in case your business doesn’t succeed. You will legally separate yourself from your firm in terms of shared funds, liabilities, contractual obligations, and ownership of any property or assets by forming a limited company. You will only be held accountable as a business owner for the nominal value of the shares you have issued in your organization. Beyond the value of those shares, any further personal funds you possess will be safeguarded. Limited liability refers to this form of protection. Shares that are created with the intention of making a profit for their shareholders limit the great majority of private enterprises.
How can I set up a business
You’ll be relieved to learn that using a company formation agent like 1st formations, the process of incorporating your new firm is quick and easy.
What is required to establish a limited company
The following are the major requirements in order to register a company:
A brand name
Although there are certain restrictions on the kinds of names you can use, this is the enjoyable part.
A place of business address
Anywhere in the country of your choice (England and Wales, Scotland, or Northern Ireland) may serve as this address, but it must be a physical address and not a post office box. If you want to keep your address private, 1st Formations provides a registered office address solution that keeps your home address off the Companies House public register.
A corporate executive
This person is in charge of running your business. You must have one, but you may have more if you so choose.
An investor
The individual who is the owner of your business may also be the director of your business. Thus, a corporation can be incorporated with just one shareholder, however additional can be added if you so choose.
The articles of association and memorandum
The company’s “rule book” the articles of association lays out how the directors are to manage the business on behalf of the shareholders. Many businesses use the private firm Model Articles, which address most situations. The company can instead adopt bespoke articles if there are special requirements; in those circumstances, it is wise to have legal counsel. When forming the company, Companies House must receive the memorandum and, in the case of bespoke versions, the articles of association. A solution like Inform Direct will automatically construct, fill up, and send these documents, allowing you to avoid sending paper copies altogether.
If your company was founded on the memorandum and articles of association. To make matters easier, Companies House will create the memorandum as part of the company registration procedure and attach it to the articles, which your company formation agent will deliver as part of their service.
At least one issued share of the capital of the company
At least one share must be issued. This will be simple for you to do thanks to the internet corporation order form. You can issue an unlimited number of shares, but the more you do so, the greater your liability will be if your company experiences financial troubles.
According to the industry you are in, the government uses this code to identify your company. You may specify your business activity or activities using up to four SIC codes.
