It is becoming a popular and paying strategy to register a business in UK. Even
those businesses that are set up elsewhere want to register a business in UK.
The reasons for this enthusiasm are clear. Registering and setting up a business
in the UK is a fairly straightforward procedure. It is easy, quick and
profitable. There are tax benefits to be thought of besides the highly
streamlined process that is available for incorporating a business in UK.
Fortunately, registering a business in the UK follows well established
guidelines. So, there is no need for any confusion.
The first step is to have a
physical address
in the UK. This is not a problem for native residents. However, foreign
companies may require a temporary office address before they can set up their
actual office. In this case, the company can pay a small amount to a solicitor
and use their address temporarily. An address in England, Wales or Scotland
would do. Mind you, all official communication must carry this address. Also,
copies of official documents have to be kept at this address.
Equally important is the decision regarding the
business structure. There are a number of structures to choose from. Most
small businesses prefer to become
sole proprietorships
because this is the quickest and the least complicated route. However, in case
the business is big enough, it might be better to consider a
partnership
or a
Limited Liability Company.
The last thing to do before you register a business in UK is choose
the name of your company
or business. The name has to be unique and there should be no copyright
violations. Legally, that is all there is to choosing the name of your business.
But, remember that you have to live with the name you choose for a long, long
time. So, apply some thought and choose wisely.
After this, you can fill out
forms 10 and 12. Form 12 requires the presence of a solicitor, notary and
justice of peace or a commissioner of oaths before it can be signed. The
Memorandum of Association lists the address and name of the company along with
the company's assets and liabilities. The Articles of Incorporation (as the name
suggests) deals with the structure of the company and lays down the company's
policies regarding voting and other activities that govern the operation of the
business. Understandably, this form will be signed by shareholders too.
These forms must be duly filled and signed and submitted to the
Companies House
for assessment. You can then
open a bank account
in the name of your company/business.
Once the formalities are over, you will have to start with
insurance policies
and
payment of tax
etc. Keep all documents safely because a new legislation introduced in April
2009 imposes penalties if records and tax returns are not maintained properly.
