Company Registration Process in UK

Setting up a company in the UK involves several steps and considerations. Here’s a detailed overview of the company registration process:

1. Choose a Company Structure

The first step is deciding on the type of company you want to form. The most common types are:

• Private Limited Company (Ltd)
• Public Limited Company (PLC)
• Sole Trader
• Partnership
• Limited Liability Partnership (LLP)

2. Choose a Company Name

Your company name must be unique and comply with certain rules:

• Must not be the same as or too similar to an existing company name.
• Must not contain offensive words.
• Certain terms might require additional permission (e.g., “British”, “Institute”).

You can check the availability of a name using the Companies House name availability checker.

3. Register an Address

Your company must have a registered office address in the UK where official correspondence can be sent. This address will be publicly available.

4. Appoint Directors and a Company Secretary

• Directors: A private limited company must have at least one director. Directors are legally responsible for running the company and making sure its accounts and reports are properly prepared.
• Company Secretary: This is optional for private limited companies but mandatory for public limited companies.

5. Determine Shareholders and Share Capital

• A private limited company must have at least one shareholder.
• Decide the number of shares to issue and their value (known as the share capital).
• Prepare a “statement of capital” that details the number of shares and their total value.

6. Prepare Necessary Documents

• Memorandum of Association: A legal statement signed by all initial shareholders or guarantors agreeing to form the company.
• Articles of Association: Written rules about how the company is to be run, agreed by the shareholders, directors, and the company secretary. Model articles are available from Companies House.

7. Register with Companies House

You can register your company online or by post.

• Online Registration: Most companies can be registered online via the Companies House Web Incorporation Service. This is usually the quickest and cheapest method.
• Postal Registration: Alternatively, you can register by post using form IN01. This takes longer and costs more.

8. Registration Fees

• Online registration: £12 (as of 2023)
• Postal registration: £40

9. Receive Certificate of Incorporation

Once your company is registered, you will receive a Certificate of Incorporation. This confirms that the company legally exists and shows the company number and date of formation.

10. Register for Corporation Tax

Within 3 months of starting to do business, you must inform HMRC that your company is active and register for Corporation Tax.

Additional Considerations

• VAT Registration: If your taxable turnover exceeds the VAT threshold, you must register for VAT.
• PAYE Registration: If you’re hiring employees, you’ll need to register as an employer and set up Pay As You Earn (PAYE).

Resources and Tools

• Companies House Web Incorporation Service: Companies House
• HMRC Corporation Tax Registration: HMRC
• Name Availability Checker: Companies House Name Availability Checker

By following these steps, you can successfully register a company in the UK and ensure that it meets all legal and regulatory requirements.