You may want to set up a company in the UK you need to know the procedure because it is not an easy task. However, if you take an expert’s assistance you can set up your company in the UK rather easily.
Once you have decided to set up a limited company you need to choose a company name after that. You should choose a unique name for your company different from any other existing company. When choosing a company name you should keep the following in mind:
• It should not contain sensitive words or expressions
• It should not signify a connection with government or local authorities (unless you get permission)
• It must usually end in “Limited” or “Ltd”
It is up to you how many directors you want for your company. But it is mandatory to have at least 1 director who must be a natural person aged 16 or over. The person must be a UK resident with correct immigration documents or a British citizen. You can appoint a company secretary, but it is not mandatory for a private limited company. Directors are legally responsible for running the company, preparing
accounts, and filing annual accounts, and confirmation statements with Companies House.
You need in your company people with significant control (PSC) over your company, such as anyone who:
• Owns more than 25% of shares
• Holds more than 25% of voting rights
• Has the right to appoint or remove a majority of directors
This information must be provided to Companies House as part of the incorporation process and updated annually in the confirmation statement.
You need to prepare a ‘memorandum of association’ and ‘articles of association’. You don’t need to write yourself a ‘memorandum of association’ when registering your company online as it will automatically be created.
If you are registering your company by post, you can use the memorandum of association template.
Post registration you cannot update the memorandum of association.
You can write your own articles and upload them or send them when registering your company or you can also use model articles.
You need to keep company, financial, and account records. You can hire a professional to look after your tax matters. HMRC (HM Revenue and Customs) may check your records with a compliance check to make sure that you are paying the right amount of tax.
You must keep the following details:
• directors, shareholders, and company secretaries
• the results of any shareholder votes and resolutions
• promises for the company to repay loans at a specific date in the future (‘debentures’) and who they must be paid back to
• promises the company makes payments if something goes wrong and it’s the company’s fault (‘indemnities’)
• transactions when someone buys shares in the company
• loans or mortgages secured against the company’s assets
Now is the time to officially register your company with Companies House. You can do this online or by post. The registration fee is £50 for the standard service or £78 for same-day registration. You’ll need to provide:
• Company name and registered office address
• Articles of association
• Details of directors, PSCs and shareholders
• Statement of capital and initial shareholdings
• SIC code(s)
Most companies can also register for Corporation Tax at the same time. If you can’t, you’ll need to register separately with HMRC within 3 months of starting to do business.
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