UK Laws on Creating a Company

 

 

Company formation is the proper term when processing an “incorporation” of any business within the territories of the United Kingdom. Sometimes it is called “company registration.” The UK company law explicitly defines a firm or corporation or company as an independent and separate entity from the people who operate or own it. With the advent of modern technology particularly in communications, most of UK companies are automatically formed the same day they are filed for registration. People like accountants, specialized agents or solicitors are accepted by the Companies House to create companies on behalf of the business owners. Most of them; however, subcontract the registration through company formation agents who specialize in these things. The usual rate that these specialized agents offer is below £100 and although this figure might seem over the edge, carrying out paper filing yourself will cost close to or even more than this amount. Another thing is that you’ll hae to wait for up to four weeks to get a response from Companies House, but with a specialized agents you don’t have to wait that long.

 

Paper process

Section 9 of the Companies Act of 2006 states that any request for forming a company will be required a registration fee and several documents along with it to the office of the Registrar fo Companies. The following are the required documents for filing a company registration:

 

Form IN01

In this form you will be required to state clearly which office will you be sending the form to, which includes any of the four known location which is either in Wales, England, Scotland or Northern Ireland. You’ll also need to fill in the details of the director or directors (in case you have many company directors) as well as the consenting secretary. The subscribers’ details and the details about the shares capital (in case your company is limited by shares). Lastly, it must also have a “statement of compliance” indicating that all the Companies Act requirements are complied with.

 

Articles of Association

This is a document that you are required to submit with the other registration forms for creating a company. It details the rules and regulations for establishing and implementing the internal affairs of the company. Each subscriber must affix his or her signature in the pressence of a witness who will verify that it is valid, before it is delivered to the Registrar.

 

Memorandum of Association

The memorandum of association must clearly outline the commitment of each subscribers to the company. If in case the company is limited by shares, then they’ll have to own at least one and their names and signatures must be affixed in this memorandum. You can get a template of the memorandum of association from the website of the Companies House.

Electronic process

Fortunately, nowadays any company registration can be done online through the eFilling service of the Companies House. However, company formation agents have direct access to the Companies House database and this is why it is more convenient to work with them on this process. Companies House have a list of bonafide company formation agents whom they work with in most transactions regarding registering a company.