Nowadays, you don’t have to file an abundance of paperwork, wait weeks upon weeks for approval, and then pay an enormous sum for setting up your company. Thankfully, it is a lot easier than it once was. However, you do need to ensure you handle everything in the correct manner, and so we have put together this step-by-step guide to give you a helping hand.
· Pick a winning company name – The first thing you need to do before you register your company is decide on a great company name. A lot of people rush into this, and they live to regret it later. Remember, you are going to be stuck with this name for years and years to come, and it is going to be a representation of your brand, which is why you need to choose with care. You must also get approval from Companies House.
· Get all the details required to register your company – The information you will require includes your company name as well as your initial shareholder details, company directors, details of the share capital to be created, and the UK registered office address. This shows why it is worth using the services of a chartered accountant in London, as they will ensure you have all of the details ready so that you do not experience any delays or any issues further down the line.
· Articles of association and memorandum – The next step is to prepare your articles of association and memorandum. These are essential because they make up the constitution of your company.
· Send the required documents to the Companies House – You have now got all of the information you require to begin the registration process. So, you will need to send these along to the Companies House. You have three different options – paper filing the IN01 form, using the Companies House online web portal, or online filing through dedicated software. One thing you need to be mindful of is that there are different charges for each option, and paper filing is the most expensive, with the standard fee being £40.
· Company formation approval – This is basically the waiting part of the process. You can’t do anything until you have received your approval.
· Set up company registers – You are required to set up and maintain company books by law. This includes all of the following – Register of Directors, Register of Mortgages & Charges, Register of Share Holders, Register of Allotments of Shares, Register of Members, Register of Secretaries, and Register of Director’s Residential Addresses.
· Create share certificates – Last but not least, you need to produce and issue share certificates for all of your shareholders. You may not see this as a necessity, but your shareholders will expect them.
If you are planning on registering and setting up a new business, the most important thing you need to do is use the services of a quality chartered accountant in London. A professional can ensure that everything is handled correctly and can give you the peace of mind you need to get to work on making your new company a success.
However, you failed to mention two very important things: first, most businesses will want to be on the Internet. In order to be on the Internet you must have a domain, i. e., a .com. Domains are inexpensive, but a short domain name is important for your customers to easily find you. So, when selecting a company or business name, it would be best to search that name to see if the domain name is already taken or if you have to buy it from someone who already owns it. It may not be an easy task to get a satisfactory matching domain name with your company name.
Second, and more important, you must have an understanding of all of the elements of a business or you will fail. Having the best chartered accountants in the world will not save your business if no one wants to buy your service or product. Or, if you do not know what it costs to provide your service or product and you price it too low. Most businesses started do not survive the first year.
Ron