The UK has a large number of people starting their own companies and investing money in startups. And the essential part of a company is the registration process. By registering your company, we get an advantage of hassle-free trading in the market. To know how to register a new limited company in the UK, look at this article.
Before starting the registration process, let’s understand what a limited company is.
About Limited Company
As the word, Limited suggests a limited company is a company whose owners are only legally for their shares and guarantee. Companies can either register as limited by shares or limited by guarantee. There are many essential tips for starting a business in London that are stated by successful people.
Company registers as limited by shares; then, they can have access to the company’s profits after paying the taxes for example- MyInscribe Digital Private Limited
However, if a company is limited by guarantee, then they will have to re-invest everything they have earned back from the company.
The companies who register at limited by guarantee can also be known as not-for-profit companies because they earn their re-invest in the company. Limited by shares, companies have shareholders and limited by guarantee, companies have guarantors. Isn’t it simple, right?
Further in this article, we will be sharing registering a limited company in the UK.
Steps to Register a Limited Company
For the Registration of a limited company, you will have to register with the UK Government and companies house. Companies House is a registrar of Companies in the United Kingdom.
Step 1: Select a Name of Your Company
The first step in the registration process is to choose the name of a company. The name you choose has to end with Limited, or you can also use the acronym, Ltd.
It would help if you remembered while choosing your company’s name to avoid any offensive words. For a company to stand out, it must have a unique name that does not exist already.
You can check the name of those who are thinking of choosing a company’s house or trademark portals. These two platforms can give you a list of companies’ names that you cannot keep.
It would help if you played a safe game for a company’s name and should not put any sensitive or offensive words. Even if you put any offensive term in your company’s name, the company’s house and government of the UK won’t permit it as per the terms and conditions. So save some time beforehand and choose the right name.
Step 2: Add Names of the People Involved
The next step is to register the names of the shareholders and guarantors of a company. Your company must also have a director whose name will also require Registration, for example- Mudit Goyal from MyInscribe
When you register the names of people involved in the company that includes you and the additional shareholders, you will have to confirm the following details of every person.
- Town of birth
- Mother’s maiden name
- Father’s first name
- Telephone number
- Passport number
- National Insurance number
How Can Companies Choose the Director?
Choosing the company’s director is vital because the director will be held responsible for the company’s functioning and will be accounted for any legal charges. The company must have a face for a representative. Before choosing the company’s director, you must be aware of all the responsibilities and legal obligations of the post. After going through all the requirements, you can select your director who fits the best. If you are starting your company, you can also take the post of director and shareholder.
Declaration of the Shareholders
Another most important thing is to declare the name of the shareholders. Even though we have stated the things you must clarify in the registration process, as additional information, you must know things we are about to state.
There might be a scenario that you might be the only person involved in it at the beginning of a company. In that case, you will be the sole director and the shareholder of the company in the registration process.
But as your company grows and more people start to get involved with it, you will have to keep updating the number of shareholders of your company. Another important fact is that a particular person has a more considerable amount of shares in a company, which also requires to be declared in the Registration of a company.
Step 3: Registration Documents
In the Registration, limited company registration requires two critical documents: Articles of association and Memorandum of association. You can register your company online with companies’ houses as well, and there are government portals.
In a memorandum of association, all the company shareholders sign the documents in an agreement with the organization.
Suppose you are using companies online as the platform for registering your company. In that case, a memorandum of association will be generated on its own after you provide them the required details. All the registration processes should be legal to the UK law firms.
On the other hand, Articles of association involve rules of the company that has to be followed by the director, secretary, and the shareholders. The company itself writes articles of association.
Once you have submitted all the documents for registration of the limited company will be completed. To register your Limited Company, you can either use the portal companies house or other websites provided by the government. Various registrar companies offer the advantage of simultaneous registration for the corporation tax, which saves you a lot of time.
Registration of the Limited companies has become extremely easy with the online portals in the United Kingdom.
After you are done with the registration, you must keep in mind that once you start with the trading and your business grows; you will have to keep a proper record of all the expenses, assets, revenue, debts, and other details. Always be a support to the Translation services of economic rebounds.
Starting a business is not easy in the beginning. It requires a lot of effort, so you have to be regular with everything that you do. Undoubtedly your limited company will flourish in the coming years.
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