Company formations

It is relatively easy to start a company formation in the UK, but that doesn’t mean one should do so casually.

Company formations

An overview of company formation in the UK

It is relatively easy to set up a company in the UK, but that doesn’t mean one should do so casually. If you get the company name, the directors and the shareholdings right from day one, you could be up and running in less than 48 hours. A good agent can help ensure everything happens swiftly and smoothly – here are some tips to follow when forming a UK limited company:

The Basic Dos and Don’ts

It’s best to favour simplicity as you go into the process, and take your time so that you are able to truly pay attention to the finer details. If you feel like you’re getting overwhelmed, you could always seek assistance from a financial adviser. And if you’re really uncertain, your best approach is to hire an agent to carry out the process for you.

Beware of trying to use a name that’s similar to that of a big corporation – it doesn’t work. And don’t put words like ‘Insurance’, ‘Bank’, ‘Royal’ or ‘Society’ in the name, as there are lots of issues associated with these words. Be realistic about the share value, and try to be your only shareholder and director if possible.

What Makes UK Company Formation Great?

Low Staffing Requirements

You need just one person to form a UK limited company. That person is you; the sole director and shareholder.

International Directors are Allowed

You can live abroad and still be the sole director of a UK company. The company’s mailing address must be in the UK, but you can live anywhere.

Low Fees

The Companies House charge is below £20 for setting up a company and filing a tax return. The UK wants inward investment and tax receipts.

Easy to Set Up

You can set up a company by yourself with only a basic understanding of business terms at the Companies House website. You need only know the identity of the director and shareholder, plus how many shares and what value to issue them.

Easy to Maintain

There are 3 annual returns to be filed to the UK government for government maintenance:

  • 1 administrative sent to Companies House
  • 1 financial sent to Companies House
  • 1 financial sent to HMRC

There are online filing services for all of these, which makes it simple.

Low Local Taxes

Currently, the lowest tax rate is 20%, which is worth paying to maintain the stable society of the UK. Companies and money in the UK are generally very safe.

There are many things to consider when forming a company. A good agent is a great way to ensure everything is done right. And the ongoing benefits are great – capital allowance claims and corporation tax returns will be handled for you, as will dividend vouchers, all in the correct way. Financial statements and abridged accounts will be handled – in a nutshell, you will be able to focus on working while company formation and maintenance will be carried out by your assigned accountant.