Small business ownership is challenging. It can often feel like time and money you should be using to bring in new business or keep your clients happy is instead spent on administrative issues and red tape. However, some of the administrative hassle can be worth it in the long run. One such issue may be incorporation of your company into a legal entity. However, how do you go about this? What information do you need before starting? And is it worth going through an expert, like Your Company Formations Ltd.
Before doing anything, you need to ask yourself whether registration is the correct route for you. While company registration is useful given that it will ensure a legal separation between you and your business, as well as providing you with a mechanism to ensure your business continues, irrespective of whether you and your team survive, it does come with administrative and cost implications, every year.
Once you’ve decided that you want to register your company, the first step is to establish a company name. If you’ve been trading as a small business owner for a while already, chances are good that you already have a trading name. However, company name registration is legislated and will require that your name is not confusingly similar to a trade mark registration or an existing company name. While this may seem like a hassle, the truth is that even trading under a name that infringes the rights of one of those entities above carries risk, so it’s best to ensure that your name doesn’t infringe another’s rights regardless.
The basic requirements when setting up a company in the UK are as follows:
- a company name
- a business outline
- a registered office (with a UK address)
- a brief summation of the business your company will be involved with
- a breakdown of how the share capital will be distributed
- names and ID numbers of the company director(s), secretary and initital shareholders
- Memorandum of Incorporation and articles of association.
None of these documents are challenging in their own right, but there are subtleties to some of them, which become more and more noticeable the longer you trade and the more people you employ. As with most things in business, its far harder to attempt to unscramble the egg than merely ensuring it’s broken correctly in the first place. For this reason, unless you have experience or education in company name legislation, it may be best to approach an approved company formation agent.
Your Company Formation Ltd is an approved company formation agent, with a host of competitive packages to suit the needs of your small business. It has over 12 years’ experience and a great name in this industry. There basic package is under £10 and still comes with digital copies of your certificate of incorporation and articles of association. You can opt for more exclusive packages, with the fully inclusive package also coming with annual tax returns and a virtual mail forwarding service and London business address. The service is well-informed, efficient and takes all the headache out of business registration. Its an investment you’ll be glad you made.