Legal Advice For Registering A Company In The UK
Interested in registering a company in the UK, but don’t know where to start? Below is a set of general guidelines that can assist you in going through the registration process in the UK, however the most important resource in registering your business is a legal consultant. Every business is different, meaning there is no one-size-fits-all approach to setting up a business. A legal consultation can give you the tools necessary to make setting up your specific business a success.
Choosing The Type Of Business
The three most common types of businesses in the UK are:
- Sole traders
- Limited companies
Sole traders are just that—a single person who sells a good or service. Sole traders are self-employed and personally tied to the company. Any after-tax profits may be kept by the owner, but the owners are also responsible for any losses made by the business.
Limited companies are small businesses owned by shareholders. The company is separated legally from the owners of the company. The finances of the company and the finances of individuals are kept separate. Further, the company can keep any after-tax profits.
Partnerships are created between two or more partners who share personal responsibility for the business. The profits are divided among the partners, with each partner paying taxes on his or her profit.
The type of business you will register as depends on your specific needs as a business and owner. Once you have decided what type of business you want to register, it is time to move onto the actual process of registration.
Registering A Company In The UK
In the UK, registration goes through Companies House, the national registrar of companies. By a process called incorporation, your business idea becomes a reality. Online through Companies House, you will provide all of the necessary details in the creation of a company such as:
- Company name
- Company address
- Name and contact information of director
- Company shareholder information
- Standard Industrial Classification identifier code
- Memorandum of Association
- Articles of Association
Once all of your registration information has been completed and approved by Companies House, your business is officially incorporated!
Seeking Legal Assistance
During the registration process, you will want to seek the assistance of a business lawyer to draft contracts between shareholders and directors and create the Memorandum of Association and Articles of Association.
Registration is just the beginning of a long, but rewarding road that lies ahead.
The next step is sorting out all other agreements and contracts. A contract lawyer can assist in drafting and consulting on contracts for employees, intellectual property agreements, and terms and conditions, among other agreements. This is an essential next step which will help avoid company problems or business disputes. Taking time directly after the registration process to speak with lawyers in company law and commercial law is an investment in the future of the company.
Although the process may seem tedious, it will save your small business in the long run from being involved in business disputes, dealing with unwanted incidents, and accumulating court fees, all of which will halt the forward progress of your new business.
For further company legal advice, consulting a knowledgeable legal professional is the key to creating long-term success for your small business. Please contact us for assistance!