British Company Formation
Dec 19 2022

Due to its favorable business climate, strong economy, and stable political situation, the United Kingdom has emerged as the ideal international corporate hub. That doesn’t diminish the complicated and detailed laws governing how businesses are formed, though. We can therefore assist you if you have been planning to incorporate a company in the UK without actually being there.

Selecting a Name

Choosing the name of your ideal company must come first. Due to naming guidelines put in place by the British corporation, this is the first step. Fortunately, the naming regulations are not overly strict, but they nevertheless call for adherence. Consequently, take into account the following information as you search for your company name:

The company name cannot be the same as an existing British firm or registered trademark.

It must not be offensive for the business name.

If you don’t acquire permission, you shouldn’t associate the firm name with the UK government.

You may check the availability of the name and make sure no one else is already using it by accessing the business house registry online.

Choose The Company’s Directors and Secretary.

Once you have chosen the name of the business, you must begin defining the roles that each employee will do. You need to consider the secretary and the board of directors in particular. In the UK, there are the following rules for company directors:

Ensure there is at least one way and no conditions based on their nationality or place of residence

The director is legally accountable for running the business and must see to it that reports and accounting are prepared correctly.

The director must be at least 16 years old and cannot have been barred from the previous organization where they held the same position.

The service address must be provided by the firm director and made available to the general public. The business directors can ask Companies House to remove a specific address from the register if they want to utilize a residential address that has been added to the register. On the other hand, we discuss considerations to make when choosing the company’s secretary;

Although it is not legally obligatory, playing this function raises one’s profile. The corporate secretary is capable of performing the duties of a director. The auditor and anyone with a zero balance in their bank account are ineligible to serve as the company secretary.

Choosing the shareholders or guarantors

Companies with share restrictions must choose their shareholders and other share-related information. When registering the company in the UK, you should include the shareholders’ details. You must specifically provide the following details;

The stockholders’ names and contact information

The number of shares held by each class of shareholders and their aggregate value

The rights attached to shares granted to shareholder

You must state whether shareholders can sell their shares for cash or whether they can cast votes on particular business issues.

Be careful to include information on the number of votes and the scope of voting rights for the share.

PSC is preferred over the companies

PSC is the group of people with the most sway over the business. The beneficial owners registration and the list of individuals who can have a substantial impact on the company must be kept up to date by British corporations. It’s crucial to identify and keep track of the individuals who own or have control over corporate choices for this reason. Legally speaking, a person must be recognised as the PSC if they possess 25% or more of the business. The following actions are necessary for the company to take throughout the incorporation process.

Choose the PSCs for the business and verify the data.

Within 14 days of naming the PSC, enter the information into the UK’s PSC registration.

Within the next 14 days, submit all of this data to Companies House’s primary public record.

If the PSC is changed, the revised information must be given within the following 14 days after the change.

Preparation of the company’s operating agreement

The articles of association and memorandum of association are requirements for firms to be incorporated. The shareholders of the company sign the memorandum of association, which is a legally binding document that outlines their commitment to the company’s development and cannot be amended after the company is registered.

The articles of association are the official document that defines how the company will be run and contains the regulations that have been approved by the shareholders, secretary, and directors of the firm. Additionally, you can obtain templates from Companies House to construct this form.

Addressing The Registered Office

The registered office address is where formal correspondence and paperwork must be sent for UK-registered businesses. Prior to beginning the company registration process, the address might be acquired. The registered office must have a physical address, be located in the same organization where the company is established, and have a usable P.O. Box in addition to the postcode and the address. If you don’t live in the UK, ask the agent to get the office address on your behalf.

Discover the SIC Code

The company’s standard industrial classification of economic operations is represented by the SIC code. The purpose of the SICs is to explain the nature and scope of the business. The SIC code must at all costs be supplied to the company’s home when you register the business in the United Kingdom.

Submit the registration form

The official company registrar of the United Kingdom is Companies House. All applications for business incorporation and registration should be sent to this government agency. You have three options for submitting your registration application: online, by mail, or through an agent. Download the form IN01 if you want to mail it.

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