If you're thinking of starting a business in the UK, you'll need to know how to form a company. Here is a step-by-step guide to help you get started:
Choose a company name: First, you need to choose a name for your company. This name must be unique and not already in use by another company. You can check the availability of a name using the Companies House name availability checker.
Decide on your company's legal structure: You will need to decide on the legal structure of your company. The most common types of company structures in the UK are a private limited company (Ltd) or a public limited company (PLC). A private limited company is the most common structure for small businesses.
Register your company: You can register your company online with Companies House. You will need to provide details about your company, such as the company name, registered office address, and details of directors and shareholders. You will also need to pay a fee.
Draft your articles of association: The articles of association set out the rules for running your company. You can use a template to create your articles of association or seek legal advice to ensure they meet your needs.
Appoint directors and a company secretary: You will need to appoint at least one director to manage your company and a company secretary to ensure that your company complies with legal requirements.
Issue shares: If you have shareholders, you will need to issue shares to them. You will need to provide details about the shares, such as their value and any rights attached to them.
Open a business bank account: You will need to open a separate bank account for your company to keep your business finances separate from your personal finances.
If this sounds overwhelming you can get set up in about 10 minutes by using a company formation service.
The Guild always uses 1st Formations because they're easy and reliable and it only costs around £20. Just visit www.1stformations.co.uk and search your business name to get started.
In conclusion, forming a company in the UK requires some planning and preparation, but the process is relatively straightforward. If you follow the above steps or use a limited company formation service you should be able to form a company with ease. Good luck with your new business venture!