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United Kingdom company formation
There are several other types of companies that can be established through the Companies House in UK; the most common being – Public Limited Company (PLC), Branch of a foreign company (‘Overseas Company’) and Limited Liability Partnership (LLP)
Legal structures for UK businesses
There are a variety of different business types in the UK, and you’ll need to choose the option that most closely fits your company’s structure.
Legal formation to start business in UK:
Sole trader
If you want to work as a self-employed person in the UK or run a business on your own, you can become a sole trader. As a sole trader, you can keep all of your business profits. You must make your own arrangements to pay income tax and National Insurance. You are personally liable for all business debts.
General partnership
This business type involves two or more individuals (or companies) setting up together, with responsibility shared equally between partners. Profits are also shared equally, with each partner paying tax on their share and jointly liable for debts and losses. This structure is often suitable for small businesses.
Limited partnership
These partnerships are similar to general partnerships but have at least one general partner who runs the business and is personally liable for any business debts. The partnership also has at least one limited partner whose input is purely financial and who is only liable up to the amount they’ve contributed.
Limited liability partnership (LLP)
This partnership agreement involves neither partner being personally liable for debts that the business can’t pay. This partnership requires a written LLP agreement and must register with Companies House, the UK’s registrar of companies.
Private Limited Company (Ltd)
This business type is a separate legal entity from the people that run it. Limited companies are incorporated through registration at Companies House and need at least one director and one shareholder. Shares in the company cannot be traded publicly.
Public Limited Company (PLC)
Social enterprise
PLCs differ from limited companies in that their shares may be traded publicly. You need to have a minimum share capital of £50,000, with at least 25% paid prior to start-up.
This is a UK business type that exists to invest any profits made to meet charitable, social, or community objectives rather than to distribute among shareholders. Social enterprises are structured similarly to limited companies and include charities, cooperatives, and community interest companies (CIC).
Offshore company
An offshore company is registered, established, or incorporated outside of your country of residence. Offshore incorporation is a straightforward process in popular offshore financial centers and tax havens around the world.
Incorporation process in UK
When launching a business in UK certain steps must be adhered to throughout the company formation process. For foreign entrepreneurs, particularly those unfamiliar with local laws, seeking legal assistance and representation is highly recommended. The company formation services offered by Yan Incorporation will be extremely beneficial.
Steps for Setting up a limited company in UK
Step 1:
Choosing legal formation
Check UK legal forms to start business in here. How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and get funding.
Step 2:
Choosing a company name
Before setting up a company, you must check the available of company name with Companies House in UK at here
Step 3:
Choosing directors
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Your company must have at least one director
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A director must be 16 or over and not be disqualified from being a director
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Directors do not have to live in the UK but companies must have a UK registered office address.
Step 4:
Deciding who the shareholders
and
Identify people with significant control (PSC) over your company
You need at least one shareholder or guarantor, who can be a director. A company limited by shares must have at least one shareholder, who can be a director. If you’re the only shareholder, you’ll own 100% of the company. There’s no maximum number of shareholders
People with significant control (PSCs) is someone who owns or controls your company (beneficial owners).
You must identify your PSC and tell us who they are. This might be you, or someone associated with your company. A company can have one or more PSCs.
Step 5:
Prepare documents agreeing how to run your company
You need to prepare a 'memorandum of association' and 'articles of association'.
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a ‘memorandum of association’ - a legal statement signed by all initial shareholders or guarantors agreeing to form the company
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an ‘articles of association’ - written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary
Step 6:
Check what records you'll need to keep
You must keep for your limited company in UK:
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records about the company itself
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financial and accounting records
Step 7:
Register your company with Companies House
You'll need to register an official address and choose a SIC code - this identifies what your company does.
You’ll get a ‘certificate of incorporation’. This confirms the company legally exists and shows the company number and date of formation.
Step 8:
Manage your Corporation Tax
When you get your 10-digit Unique Taxpayer Reference (UTR), you’ll need to add Corporation Tax services to your business tax account.
You should add Corporation Tax services to your account when you start to do business. This includes buying, selling, advertising, renting a property and employing someone.
Branch Office Registration in UK
Within the spectrum of legal entities available to operate or invest in UK, a branch office is a valid option to access the market with full guarantees. Mixed up often for subsidiary companies, branches are not a separated legal entity to its parent company but an extension to it.
Differences between a branch office and a subsidiary company can be seen below:
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No require founding capital
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No legal capacity in its own
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No local management, decisions are taken by parent company.
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The parent company is liable for all actions or omissions of its branch
Branches have similar incorporation requirements to regular private companies
Get in touch with us
Contact us today to receive a quotation for our company formation in UK. We are here to assist you every step of the way.
Contact
Email: info@yanincorporation.com
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