How to Set Up a Company in United Kingdom?
Setting up company in UK involves several steps, and it’s crucial to understand the process to ensure your business complies with legal requirements. Here’s a step-by-step guide to help you establish a limited company in the UK:
Decide if a Limited Company is Right for You
Before you start, consider whether a limited company is the best structure for your business. This decision will impact your responsibilities, how you can take profits, and your personal liabilities.
Choose a Company Name
Your company name must be unique and not similar to any existing registered company. You can check the availability of your company name on the Companies House website.
Appoint Directors and a Company Secretary
You need at least one director to legally set up your company. Directors are responsible for running the company. While not mandatory, appointing a company secretary can help manage some of the administrative burdens.
Identify People with Significant Control (PSC)
A PSC is anyone who has more than 25% shares or voting rights in the company. You’ll need to register these details with Companies House.
Prepare Documents
You need to prepare a ‘memorandum of association’ and ‘articles of association’. The memorandum includes the names of the initial shareholders and their intention to form the company. The articles of association outline the rules for running the company.
Register Your Company
You can register your company with Companies House online or by post. Online registration typically costs £12 and can be completed in 24 hours, while postal applications cost £40 and take 8 to 10 days.
Set Up Your Company for Corporation Tax
After registering, you’ll receive a ‘Certificate of Incorporation’ confirming that your company legally exists. You must register for Corporation Tax within 3 months of starting business activities.
Open a Business Bank Account
Once your company is registered, you should open a dedicated business bank account. This helps in keeping your company’s financial affairs separate from your personal finances.
Understand Your Responsibilities as a Director
As a director, you have legal responsibilities, including keeping company records, reporting changes, filing your accounts, and paying Corporation Tax.
Compliance and Reporting
Ensure ongoing compliance with statutory obligations such as annual filings, maintaining accurate records, and submitting annual accounts and tax returns.
For more detailed guidance and to start the registration process, you can visit the official UK government website on setting up a company: Set up a limited company: step by step – GOV.UK.
By following these steps and ensuring compliance with UK laws and regulations, you can set up your company smoothly and start your business operations in the UK.
Setting Up Company in UK – For your questions and requests, please don’t hesitate to contact us. As we are a Turkey-based consulting firm, we have business partners located in United Kingdom that can help you do business in the UK.
