The world is constantly changing. What used to take ages to accomplish can now be done in a few minutes. Communication, for instance; if you wanted to communicate with a person in a different town, you had to send a letter, which would take a few days. Now, you can communicate with a person in a different continent, with a few strokes of the keyboard.
Businesses too used to take forever to set up. You had to walk into a physical address, fill in the paperwork, wait for it to be processed, and so on. The tedious endeavor has the ability to discourage most people willing to set up businesses. However, in the wake of the digital era, starting a company has been made easy, more so, with the aid of formations companies.
A formations company does more than just facilitate your request and act as an intermediary between you and the Companies House. They go through the registration to determine if it’s feasible and if it is, the formation agents go ahead to submit your request to the Companies House for consideration.
As per the Companies Act 2006, a company is required to have a register that records the structure of your company. Such records include; shareholders and capital ratios, details of the company’s directors, and ownership of shares. The lack of these records is considered an offense, and the directors are culpable of a criminal offense in regards to the act aforementioned. Reputable formation Companies ensure your company has all the correct documentation, thus guarantying your compliance with the act and the law in general.
Now that you’ve understood the importance of formation companies and agencies let’s segue to the process of registering a company through a formations company.
1. Get your company name
Every company has a name, the journey to registering your company begins with a name for your business. You should give some thought to the name you would like your company to be recognized with. A name is essentially the first contact someone will have with your company. Also, you should be keen on spelling and punctuations, but most formation companies will help with that.
2. Get an official company address
Your name is secured, and on you go. You now need to get an official mailing address where all the official companies’ documentation can be sent. If you are a small startup, you can use your home address in the meantime.
3. Choose your company’s Standard Industrial Classification
Every company has a trade; yours is no different. When you’re registering for your company, you’ll need to inform on what your company will be dealing in. The Standard Industrial Classification (SIC) has an exhaustive list where you can explore the different fields.
4. Appoint the company’s directors
The director will be legally responsible for the company’s running, they will also ensure the necessary reports and company accounts are prepared, and on time. The director(s) must be above 16 years, and you will be needed to provide two addresses for each of the directors.
5. Outline the proposed company share structure
Companies –especially limited ones, are made up of shares. You will need to provide information concerning these shares. The formations agents will help you look at the nine types of shares, their total value, and currency.
6. Choose the shareholders
As aforementioned, limited companies are made up of shares. You will need to allocate shares to the various shareholders. If you are the only one running the business, then you can allocate the total share percentage to yourself.
7. Sign the Statement of Compliance
Forming a company is considered a legal affair. Thus, you will need to sign that you have read and complied with the Companies Act, as well as the Memorandum of Association pertaining to the rules of starting and running a business.
8. Pay the Formations Agents
If you go at it alone, you will only be charged £12 at this point on the Companies House Website. However, if you go through a formations company, there will be a service charge. The charge by formations companies differs from package to another, but you can expect a fair charge of £5 to £30.
There you go, all you need to know about registering a company in the UK, how easy it is and the process you can expect while using a formations company. All the best!