Company Formation in the UK — Tips for Entrepreneurs

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Registering a business in the United Kingdom is relatively easy. You can send an application directly to Companies House or use the services of an intermediary — a professional registration agent. The best part is that you do not even need to leave your home to do it!

To speed up the launch and minimize the paperwork, consider company formation in UK with bank account online. Your service package may also include a debit card and an app. The provider will submit your documents to Companies House and provide you with a solid platform for monitoring and managing the cash flow.

What Structure Should I Choose?

The simplest structure is a private limited company with one director who also acts as the owner and shareholder. This is preferable for entrepreneurs who want to register easily. The alternatives are:

  • sole trader, 
  • public limited company, 
  • business partnership, and 
  • overseas company. 

Private entrepreneurs who register as sole traders should be aware of personal liability. If your company fails to make sufficient profit, their personal assets like property may be used to pay the debts. This structure also comes with higher taxes in comparison with a private limited company. Creating the latter is more attractive due to lower taxes and limited liability. It protects your personal assets and finances.

Limited companies must register with Companies House, the institution that incorporates and dissolves UK-based businesses. However, if you want to be a sole trader or business partner, you must only inform the HMRC (HM Revenue & Customs). 

You do not have to handle the paperwork yourself. Hire a reliable formation agent who will do everything on your behalf. This is the easiest way to register a company in the UK. 

Tips for Choosing a Name

Your business needs a memorable and unique name, but coming up with one is not easy. Look at competitors for inspiration, and make sure to follow these rules:

  • The name must be available (the name availability checker of the Companies House will tell you if the name has already been used by another company).
  • It should be short, memorable, and easy to spell.
  • It should reflect your company’s operations, so consumers will instantly associate it with the right industry.
  • It must not contain words classified as sensitive (e.g., Royal), offensive or trademark names according to government guidance documents.

Entrepreneurs1

Entrepreneurs1

Online Registration Procedures

When registering online through an agent, you only need to submit a few documents. For example, an entrepreneur establishing a private limited company needs four things:

  • an application provided by their agent,
  • a valid ID document with a photo that matches their selfie video,
  • a utility bill, bank statement, tax return or council bill as proof of status as a UK resident, and
  • a business address in the UK (you can get one online)

The employee will confirm all of the information and send it to Companies House on your behalf. On average, all formalities take up to 5.5 business days. Once the registration is complete, you will be provided with a bank account. Sometimes, a banking app is also part of the package.

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When you sign up for an account, you can save properties, receive new listing notifications, and sign up to receive monthly market reports.

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By providing your number, you are expressly consenting, in writing, to receive telemarketing and other messages, including calls or texts at the number you provided above. This consent is not required to purchase any good or service. Message and data rates may apply. Text STOP to cancel.