The UK is among the most business-friendly countries in the globe and ranks highly in ease of doing business scores, according to the World Bank. Subsequently, it is a hub for local and international entrepreneurs ready to enjoy the nation’s thriving commerce landscape, good infrastructure, technological advancements, pleasant regulatory environment, and numerous financial incentives.

If you want to venture into the UK market, the first step is to register your company. Unfortunately, many businesses, especially foreign ones, are unsure how to start a business in the UK. This article comes in handy to provide a comprehensive guide for registering your company to make the process seamless and stress-free.

Step 1: Choose an Appropriate Business Model

The first step when you want to register a company UK is to determine your ideal company structure. This is a crucial step since it affects multiple aspects of your company, from management to taxation and liability. 

The best structure depends on your company's needs and objectives, nature of business, operation area, and partners involved. Here are the common business structures.

Sole Trader

In this structure, you have full control over your company and are liable for running it. Many people register their businesses as sole traders because of ease of setup and operation, fewer reporting requirements, and tax benefits.  

Partnership

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This business model involves two or more individuals –partners who share profits and liabilities based on agreement. A partnership gives you complementary skills, more resources, fewer legal obligations, and a shared burden. You choose between a general partnership, a limited partnership, and a limited liability partnership.

Limited company

As the name implies, limited companies provide limited liability to members based on their shares. They fall into two categories: private limited companies –not publicly traded and public limited companies –with publicly traded shares.

Step 2: Select a Company Name

The second step in registering a company in the UK is choosing a unique name for your business. Here are a few guidelines for getting a company name.

• Ensure the name aligns with your offerings and industry

• Opt for a meaningful and memorable name

• Pick a name not similar to existing company names

• Refrain from names with offensive words and distasteful humor

• Avoid sensitive and regulated words such as insurance, assurance, and Olympic and royal family names like Queen and Their Majesty. You need special permission to use these names.

• Keep the name short and easy to spell

 Step 3: Get an Official Address

Having an official address is paramount when registering your company in the UK. It allows information exchange and promotes accountability. The address should be a physical location and not a P.O. box, and it becomes a public record.

The good thing is that the address mustn’t be the company’s location; it can be your home or office address or another location. You can even find a professional who rents out their business address.    

Step 4: Provide Directors, Shareholders, and PSC Information

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Directors manage a business’ affairs and make decisions. Your company should have at least one director over 16 and one shareholder. When registering your company, you should also provide People with Significant Control (PSC) data for transparency and to avert illegal activities. 

These are individuals or entities with tremendous influence on the business and mostly have over 25% shares or voting rights.

Step 5: Avail MOA and AOA

Companies House requires companies to provide a Memorandum of Association (MOA) and Articles of Association (AOA) during company registration. The latter outlines business objectives and relationships with shareholders, while the former defines operational policies. The company directors and shareholders must sign these documents before registration.   

Step 6: Get an SIC Code

Standard Industrial Classification of Economic Activities (SIC) Code categorizes companies based on their primary activities and industry. It determines the sector in which your company will operate and helps with industrial statistics and reporting.   

Step 7: Register Your Enterprise

After meeting the necessary prerequisites and gathering the relevant documents, it is time to apply for registration. You can register online or offline on the Companies House site by sending the required documentation through post.

In a nutshell, you will need;

• Company name and official address

• Valid passport or visa for owners, partners, or directors

• Shareholder details –name, address, number of shares

• PSC information

• MOA and AOA

• Bank account details

You may wonder how much it will cost to register your company in the UK. Luckily, it is inexpensive, and you pay £12 for online registration and £40 for offline registration via post.  

Step 8: Get a Certificate of Incorporation and Bank Account

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After successfully registering your company, you will receive a Certificate of Incorporation to legally operate your business in the UK. Proceed to open a business bank account to manage company finances.

Among the requirements include identification documents for directors and partners, business address, and Company House Registration Number. Although a business bank account is not mandatory for sole traders and partnerships, it helps separate personal and business finances.  

Conclusion

You can confidently start a business in the UK by understanding the steps outlined above, including prerequisites, documentation, and the registration process. 

From company structure to director and shareholder information and MOA, this crucial information fosters transparency, accountability, and compliance with UK company law for a smooth company registration process.