Forming / Incorporating / Registering a company is a legal process where a business is registered as a limited company. This process takes place at a Government agency “Companies House”. “Companies House” is an executive agency of the Government who is authorized to Register Companies. They Incorporate as well as Dissolve a limited company. In this process, the company’s information is registered and made available to the public.
Once a Company is incorporated, it becomes a legal entity and is separated from its Owner.
Ways to Register a Company
One or more people can register a Company in the Companies House. The process of Company incorporation is a legal contract which can be lawfully done only by adults. Children under the age of 16 years have no rights to lawfully form a company.
This legal filing can be done by following ways:
Electronic Software filing
Electronically submits forms using third-party software.
Web Incorporation service
It is an online filling service. Following restrictions apply:
Setting up a Limited company by shares.
The Model Article of Association is chosen instead of the company’s own article of association.
Paper filing
Submitting paper documents to the office. If a company chooses not to use Limited in the Company name, then it has to file through papers by Post (Form IN01). Any other application can be done through Paper filling. Same-day registration is also possible.
The Formations Company
The formations Company/agents are authorized by the Companies House. They prove to be a professional guide while setting up a company.
Types of Company and the mandatory requirements for formation
Limited Company ( by shares)
- Minimum one shareholder
- Minimum one director
- Issue at least one share per shareholder
- SIC Code
- Registered office address
- The official name of Company (should have Limited or Ltd in name)
- PSC details
Limited Company ( by dividends)
- Minimum one director
- Minimum one Guarantor
- The official name of Company
- PSC details
- Registered office address
- Service address for each Director, Guarantor & PSC
- SIC Code
Limited Liability Partnerships
- Minimum two partners
- Registered office address
- The official name of LLP
- PSC details
- SIC Code
Documents necessary for Company formation (Checklist)
The company incorporation process needs the following documents:
Application form
The form needs the below details:
- Proposed Company name
- Registered Office address
- Type of Company
- Details of business activities. Choose a SIC (Standard Industrial Classification) code to describe the company’s activities.
- Details of Director(s):
- Full Name
- Date of Birth
- Nationality
- Occupation
- Residential address
- Service Address
Details of Shareholder(s) for both (where a shareholder is a Person with Significant Control (PSC) or shareholder is not a Person with Significant Control)
- Full Name (for both)
- Date of Birth (only for PSC)
- Nationality (only for PSC)
- Nature of Control (% of shares and Voting rights) (only for PSC)
- Residential address (only for PSC)
- Service Address (for both)
- Security details to be used as Online signature (for both)
Details of Secretary
- Full Name
- Date of Birth
- Nationality
- Occupation
- Residential address
- Service address
Details of People with Significant Control, if PSC is not a shareholder/ director/ secretary
- Full Name
- Date of Birth
- Nationality
- Nature of Control (% of shares and voting rights)
- Residential address
- Service Address
- Age proof for Directors(s) and Secretary (cannot be less than 16 years)
- Any former names used by directors for business purpose
- A statement of Capital Shareholding or guarantee
- Explanation in case of Sensitive Word used in the Company proposed name.
Memorandum of association
A legal document which clarifies the intention to form a Company. It also shows the Company name, details of shareholders, the number of shares held by them and the location of the registered office address.
Articles of association
The Article of association is an internal book of rules defined by the members. It helps to run the company efficiently. It binds the company with all its members. If a company doesn’t provide its AoA, they can use the model articles as it is or with some amendments.
Bank Account
It is not legally mandatory to open a Business Bank account, but in reality It is very difficult to run a business without a Bank account. A separate Business bank account makes easy to trace the business activities, prepare taxations and maintain annual business accounts.
Both UK Resident and non-resident directors/ shareholders can open a UK Bank account whereas it is easy for a resident to open a bank account than a Non-resident.
Requirements for a UK Bank Account
- Identity Proof for all directors
- Address Proof
- Full Business address
- Company’s Contact information
- Company House Registration number
- Projected annual revenue
Top Banks to open an account within the UK are:
- Barclays
- HSBC
- Royal Bank of Scotland
- Lloyds Banking Group