8 Crucial Steps for UK Company
First, you need to create a business plan and decide which company structure is best suited for your business. Once everything is sorted you will need to follow these steps for the UK company formation:
1. Choose a company name:
Every company must have a unique name, so avoid selecting a name that is too similar to a competitor's business trading name.
2. Get a UK-registered office address:
Your UK company registered address must be a physical address in the UK and must be in the same country in which your company is incorporated. You can use a PO Box address only if it is a physical address. The company address will be publicly visible on the online register.
3. Get a director: Your company must have at least one person to run the company — he does not have to be a UK resident.
4. Issue shares:
If you set up a company limited by shares, there must be at least one shareholder. The initial value of the share can be specified.
5. Create a Memorandum & Articles of Association:
This is a legal document signed by all initial shareholders agreeing to form the company. These are official rulebooks about running the company agreed by the shareholders, directors and the company secretary.
6. Register as a limited company:
You can register online with the help of an offshore company formation agent for smooth company setup if you have completed everything on the list above. An agent can help you set up everything you need. You can also register in person, but this method is more expensive and can take a longer duration.
7. Register for corporation tax:
You need to register for Corporation Tax and PAYE as an employer at the time of registering your company.
It must be registered within 3 months of starting to do business activities, such as buying, selling, advertising, renting a property or hiring employees. Allow some time for the registration process because you will need a Unique Tax Reference mailed to your company address before you can complete registration. You should also register for VAT.
8. Tax return:
You must also file and report the company tax return on the due date each year. This information can be compiled by you or an accountant, but it must be done regardless of whether the company makes a profit. Your tax return must also be submitted to HMRC and Companies House. The tax return should not be confused with the annual accounts or confirmation statement of a UK limited company, which must be delivered after 12 months.