INTRODUCTION:
A company in the UK refers to a business entity that is legally registered with Companies House, the government agency responsible for registering and regulating companies in the UK.
It is a legal entity that is separate from its owners and can enter into contracts, sue and be sued, and can own assets in its own name. Companies in the UK can be organized in a variety of forms, including private limited companies, public limited companies
TYPES OF COMPANIES: -
a) Private Company Limited by Shares:
A private Company limited by shares is the most common type of business entity.
Can start a company within capital as minimum as £1.
The shares of these companies cannot be offered to the public.
No compulsions to appoint a company secretary.
b) Public Company Limited by Shares:
Its shares available to the general public through the stock market to raise capital for the business.
Thus, this business entity is adopted for big businesses due to above fact.
Minimum share capital of £50,000 required to incorporate.
Minimum 2 Directors and a Company Secretary are required.
c) Private Company Limited by Guarantee:
There is a pre-agreed amount that the company shall pay to its debtors in case the company shuts down.
Usually adopted by non-profit organisations.
No Shareholders and no Share Capital.
Guaranteed amount can be as little as £1.
d) Private Unlimited Company:
There is no monetary limit to the extent of liability that may be accrued to the members of the company.
Not legally bound to submit their annual accounts to the Companies House
REGISTRATION PROCEDURE:
a) Choosing a Company Name:
Company name must be unique.
Not already in use by another business.
Conduct a name search to ensure the name you want is available.
b) Appoint directors and Company Secretary:
Every company must have at least one director who is a natural person.
You will need to provide the names and addresses of all the directors.
Director can be Resident or Non-Resident of UK.
Appoint a Company Secretary incase of forming a Public Limited Co.
c) Decide Shareholders / Guarantors
Decide the number of shareholders / guarantors.
Decide the share capital of the company (Minimum: £1 – Pvt Ltd; £ 50,000 – Public Ltd)
These details required to submit to the company house.
d) Collect the necessary documents:
You need to prepare and file Articles of Association and Memorandum of Association with Company House.
Other details to be submitted includes company name, and registered office address (along with address proof – UK only).
Need to check SIC code which helps identify what your company does.
e) Register our Company:
After collecting all the necessary documents submit the same to company house.
The Company house after verification will approve and issue company incorporation certificate.
Shared holder certificate will also be issued.
POST REGISTRATION COMPLIANCES:
a) Taxation-
Once the company is registered you need to comply with taxation norms mainly VAT and Corporate Tax which will be covered in a separate blog.
b) Maintain Books of Accounts-
You need to maintain proper books of account as per the GAAP. This books the need to be filed with the Company House.
c) Company Accounts Annual Filings-
You need to prepare your annual accounts and file the same to the Company House every year.
It is advisable to get all of these compliances done through an authorized professional.
Learn more about How Punchhole can help you in the Formation of your company along with all the Annual Compliances such as Tax Returns and Company House Filings.
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