In the U.K the process of setting up a company is relatively straightforward as solicitors can help set a company online cutting out the need for any paperwork. Company formation requires the filling of some mandatory documents and the following shall have to be considered:
The costs associated with setting up a company vary depending on the method used to form the company:
Â -Â Paper filling – the standard registration fee is Â£40 for paper applications filled direct to Companies House, the ‘Same Day’ service (for applications received before 3pm Mon-Fri) is Â£100, Companies House aim to process standard documents within 5 days of receipt.
Â -Â Software filling – certain software must be used to file the various paperwork, incorporation agents use this to enable them to offer company formation from as little as Â£25 + VAT. The standard fee at Companies House is Â£14 and the ‘Same Day’ service (for applications received before 3pm Mon-Fri) is Â£30.
When deciding upon your company name it is necessary to check whether a name has already been taken. To do this you must consult the company names index, which will also let you know whether similar names exist to the one you propose to use. Detailed guidance may be found in The Company and Business Names (Miscellaneous Provisions) Regulations 2009.
You must decide on the type of the company you would like to set up, you may choose between:
Â -Â Private Limited Company
Â -Â Private Unlimited Company
Â -Â Limited Liability Partnership (LLP)
Â -Â Public Limited Company (PLC)
Your choice of company type will depend on the structural set up that is best suited to your business needs and requirements, risk assessment, financial matters and trading arrangements.
In order to formally register a company this form must be filed at Companies House, the form requires the following:
Â – The name of the company
Â – The registered office address
Â -Â General details about the company including a statement of the proposed officers, company secretary (if there is one), the director(s), and whether the company proposes to be a public or private.
Â -Â A statement of initial shareholdings and capital or a statement of guarantee.
Â -Â (If applicable) Any application by a private company limited by guarantee to seek exemption from the requirement to use “limited” in the company name (this will not be relevant for most applications for incorporation).
Â -Â (if applicable) If your application includes a proposed company name which contains a prescribed or sensitive word, a requirement to confirm you have requested/attached a statement of support from a government body/department.
The Memorandum of Association
This confirms the subscribers’ intention to form and become members of a particular company. For a company that intends to be limited by shares, evidence must be provided of the members’ agreement to take at least one share each in the company. Once a company has been incorporated the memorandum cannot be amended.
The Articles of Association
By law every company is required to have articles and they are legally binding on the company including all members, the articles of a company:
Â -Â Set out the regulations, governance and the internal affairs of the company.
Â -Â Essentially form a contract between the company and its members.
Â – Help ensure smooth running of the business by setting out how the company will make decisions, including various matters concerned with shares.
It is possible to obtain model Articles of Association for private companies limited by shares/guarantee and public companies. However if individual articles are to be individually drafted it is advisable for professional advice to be sought.
The type of articles used must be declared in form IN01 and a copy of the articles must also be filed. If no indication is given in the form then model articles are automatically adopted. Articles may be amended but notification of the changes must be sent to Companies House to as to avoid a Â£200 civil penalty.
The Lawdit Solicitors Commercial Department can assist with the company formation. Get in touch with one of our lawyers who will be happy to help.