The United Kingdom is one of the best places to start a business, as the government helps nurture the growing ecosystem. The barriers to starting a company are falling one by one. Funding is available and the legal requirements have become easy. The only obstacle is your own sense of confidence and belief. There is no better time than now to start a business. If you are looking forward to incorporating a start-up company in Britain, please continue reading to discover what you need to do.

Choose your business structure   

It is important to get the business structure right. While there are no considerable differences between the different legal entities, they present advantages and disadvantages. There are three main types of businesses in the United Kingdom: sole proprietorship, partnership, and limited company. Let us have a basic overview.

Sole proprietorship. When you are a sole trader, you do whatever you want. To be more precise, you run your company as an individual and are your own boss. While you get to keep the profits, you are liable for the debts of the company. This means that if anything should go wrong, you are responsible. You cannot separate yourself from the business.

Partnership. This is a development of the sole proprietorship structure. If you have two or more partners, the profits will be shared among the participants. Attention needs to be paid to the fact that the partners are responsible or liable for the debts incurred by the business. A partner does not have to be an actual person. A limited company, for instance, can be a partner.

Private limited company. The business owner and the business are two distinct entities. This separation offers many advantages, such as tax efficiency, limited liability, and easy access to funding. You can hire people to manage the daily responsibilities, such as keeping records and reporting changes.

Determine what the best form for your business to take is. A private limited company offers many benefits. If you need more information, check out online articles.

Pick a unique name

Since the company name plays an essential role in the brand’s growth and perception, you have to choose wisely. The name should convey the right message and feeling. Most importantly, it should work across various mediums, including your site and social media platforms. A company can choose a name that:

  • It is original – Come up with something hip and original. The company name cannot be identical to another one. What is more, the name cannot be too similar to an existing company name.
  • It does not contain a sensitive word or expression – The name will create confusion or mislead the public. In some cases, it is required to have the prior approval of the Secretary of State so as to use the company name.
  • It ends with Ltd – You need a special ending for the corporation’s name. The name ends with Limited or Ltd.

Prepare the necessary documents  

If you have access to a computer, you should incorporate the company online. This can be done in just a few hours and you can start the activity. Setting up a company with a little bit of help is an opportunity you cannot afford to refuse. Regardless of what service you settle to use, the incorporation process is relatively simple and you are guided every step of the way. The key documents to register a company in the United Kingdom are:

1.      Memorandum of Association

It is simply called the memorandum. The memorandum of association is the legal document that comprises the essential conditions on the basis of which the organisation operates. The shareholders or guarantors have to sign it. The memorandum is delivered to the Companies house together with an application for registration. It contains information such as company name, date of incorporation, type of legal entity, names and signatures, etc.

2.      Articles of Association

The document states the way in which the tasks are carried out in the organisation and makes reference to the process of appointing directors and handling financial records. In the Articles of Association, you will find details like the powers and responsibilities of directors, decision-making procedures, instructions for appointing directors, administrative arrangements, and so on and so forth. More often than not, they are simply referred to as articles.

Other pieces of paperwork that you will certainly need are share certificates and statutory registers. There is no time to waste, so start the process now.

Let the Queen know your company exists

Finally yet importantly, register the business through the Companies House. It will be necessary to provide your address and raise some capital. The smart thing to do is to issue 100 shares a t1£ value. You do not have to make complex evaluations when put in the situation of raising money again. Most importantly, make sure that you have a director who is a resident of the United Kingdom. It is not obligatory, but you will receive allowances from the HMRC.

Author's Bio: 

Cynthia Madison