What Are the Requirements to Register a Company in the UK?

Ryan Patrick

• 9 min read
What Are the Requirements to Register a Company in the UK?

With the ever-increasing economic development within the UK, many individuals are now starting a business. If you are considering starting a business soon, whether your business will be product or service-based,  one of the key steps you should be thinking about is the registration of a company. Company registration is a goal Incorpuk has helped a lot of businesses to achieve.

For you to operate a business legally within the UK, you must register a company with the UK Companies House. While doing that, there are some basic requirements you must fulfil before you can successfully register a company. We will therefore explore the requirements needed to register a UK Company in this guide.

What Does Company Registration Mean?

Company registration within the UK involves the process of legally forming a new company with the Companies House. It is a step-by-step process of incorporating a company within the UK. Before a company can legally operate in any jurisdiction within the United Kingdom, it is expected that the company is registered. The registration process involves choosing a suitable company name, getting a registered office address, and providing details of shareholders, directors and so on.

Once a company has been successfully registered and incorporated within the UK, it is offered a unique registration number. As such every registered company has a special number that makes it different from every other company. Apart from that, all registered companies are issued a certificate of incorporation which enables the company to carry out its activities officially.

What Are the Requirements to Register a Company in the UK

To register a Company within the UK, there are certain requirements that must be met. Here are the requirements you will need in order to successfully register a UK Company.

1. Registered Office Address

When registering a Company within the UK, you will be required to provide a registered office address. This address usually is a full postal address and it serves as the official company address where mail and correspondence are received. The registered office address must be situated in a location where you intend to register your Company within the UK and it must be physically available every working hour of the week. Documents, notices and every other important mail from the Companies House and other authorities will be received at this address.

2. Business name and Activity

You will also need a business or company name for your company registration. You would need to check if the business name you intend to use hasn't been used by another existing company. You will also need to check if the name meets up with the UK Companies naming rule. As such the name must not be sensitive or offensive. You can find out if the name selected is unique by using the Companies House name checker tool. Also, you can verify if the name meets the eligibility criteria and rules through the Companies House website.

Once you have a valid business name, you will also be required to provide the Companies House with your business activity. You can achieve this by selecting the correct SIC code( Standard Industrial Classification code). This helps describe what your business activities are.

3. Shareholders details

The shareholders of the company are the owners of the company. Important details about the shareholders must be provided before a company registration can be completed. In the UK, shareholders must be at least 16 years of age before they can legally own or register a company. One shareholder can start or register a company. However, a company can also have multiple shareholders. When registering a Company, here are some of the shareholder's details that will be required:

  1. Shareholders full name
  2. Date of birth
  3. Nationality
  4. Residential address
  5. Service address
  6. Shareholding of each shareholder
  7. Nature and Percentage of Control of each Shareholder.

4. Directors details

Directors within the company are individuals coupled with running the daily affairs of the company. Usually appointed by the shareholders, directors within a company can be human or another company serving as a director in a company. However, at least a human director is required to register a UK Company. It should be noted that a shareholder within a company can also serve as a director. So a company can be registered with one individual who is a shareholder and also a director of the company. Some of the details of the directors that will be needed for company registration are:

  1. Directors full name
  2. Date of Birth
  3. Occupation
  4. Nationality
  5. Residential address
  6. Service address

5. Persons with Significant Control

In a situation where the Persons with Significant Control are not shareholders or directors of your company, then you would need to provide the below details.

  1. Full name
  2. Date of birth
  3. Nationality
  4. Service address
  5. Residential address
  6. Percentage and Nature of Control

6. Secretary details

Although it is not compulsory to provide secretary details, you might want to provide this information if you have appointed a secretary before business registration. Here are the details you will need to provide.

  1. Secretary full name
  2. Date of birth
  3. Occupation
  4. Nationality
  5. Residential address
  6. Service address

7. Required Capital

You would need to provide a total of the capital available to start the company. This would be dependent on the structure of the company you are registering. It could be a Limited company, limited liability partnerships and so on.

8. Business Registration form

A business registration form will also be required to complete your company registration. This form usually differs based on the company structure you want to form. It can be completed online through the Companies House website or printed, filled and submitted through post. Either way, a business registration form must be filed accurately with the Companies House before a Company Registration can be done.

Company Registration Process in the UK

Registering a Company within the UK involves following some processes. Here are they.

1. Select a Company Structure

Firstly, you would need to decide on the business structure before filing for your business registration. Some of the business structures are limited companies, limited liability partnerships, sole proprietorships,  partnerships and so on. While each of these business structures differs, it is important to understand how each works and determine the one that will work best for your company.

Some of the factors you would want to consider when choosing a company structure include the nature of your business and your business activities, the industry your business operates in, the ownership structure of each business type, tax obligations and so on.

2. Choose a company name

Once you have determined the business structure, you will need to choose a company name. As earlier mentioned, there are certain criteria and rules you must follow when selecting a company name. Be sure to check them out on the Companies House website before choosing a suitable name.

3. Decide on the Registered office address

Registered office addresses are an important aspect of your company formation process. Choose a Suitable registered office address that will serve as your company's official address where all company legal documents will be received. Without this address, you won't be able to complete your company registration.

4. Appoint directors and secretary

The next step would be to appoint directors and secretaries of the company as appropriate. Information about the directors and secretaries will be needed to complete the company registration process. As such the shareholders of the company must work together to appoint at least one director before filing for a company registration with the Companies House.

5. Gather the necessary documents

Every important document like the Article and Memorandum of Association must be prepared beforehand. These documents must be made available and signed by the right individuals before a company registration can be done.

6. Complete the registration with the Companies House

Once you have all the necessary information and documents ready, the next step would be to file for a company registration with the Companies House. You can complete this online no matter the location where you are. Complete the registration form by providing the necessary details and documents.

You would also need to pay a registration fee which would be dependent on the company structure you are forming. Once you have paid the fee, you can submit and wait for registration approval.

7. Get the Certificate of Incorporation

Once you've submitted your registration application with the Companies House, you should wait for Approval. This could take a few hours to a day. After the application has been approved, you will be notified by the Companies House and be Issued a certificate of Incorporation. This certificate indicates that your company registration process has been completed and you can therefore legally operate within the UK.

Company Structures within the UK

Here are some of the company structures you can start within the UK. While some must be registered with Companies House, others do not require Companies House registration.

1. Sole trader/Sole Proprietorship

A sole proprietorship is a one-man business, meaning the business is owned by just an individual. As such capital for the business is raised solely by the owner, the debt and liabilities incurred by the business are cleared by the owner and the profit is enjoyed alone too.

A sole proprietorship structure is the simplest business structure to form within the UK. Unlike a limited liability,  the business structure doesn't have a separate legal entity. With that, the owner is not protected if the business runs into liability. A notable advantage of this business structure is that you have total control over your business. However, it could be quite difficult to raise capital for this type of business since most investors prefer a business with a limited liability. A sole trader is considered a self-employed individual and therefore pays an income tax.

2. Partnership

A partnership business structure is owned by at least two partners who run and control the business. Owners in partnership businesses raise the capital for the business, manage the affairs of the business and share the profit and loss of the business. Just like a sole proprietorship, partnerships aren't recognised as a separate legal entity. They do not have a Limited liability and as such partner's assets and properties aren't protected against liabilities and debts.

3. Limited Company

Limited companies are business structures with separate legal entities. All companies registered as Limited company has a distinct personality and are therefore separated from their owners.

With this business structure, members or shareholders are protected from company Liability, meaning the debts incurred by the business are cleared by the company and not the shareholders.

Limited companies can be taxed as income tax or corporate tax depending on how the shareholders want it. Unlike a sole proprietorship, limited company capital is usually raised by shareholders who contribute shares within the company.

4. Limited Liability Partnerships

Limited liability Partnerships (LLP) take the features of a partnership business and a Limited company. It is formed by at least two partners who run the business. Unlike the traditional partnership, LLP enjoys a Limited liability and as such the liability incurred by the business doesn't affect the partners or owners.

However, they can enjoy the flexibility in the management and administration as those of the traditional partnership. LLPs are also taxed as income tax meaning individual partners' income is taxed rather than the business itself.

It should be noted that while a Limited company and a Limited Liability  Partnership are usually registered with the Companies House, a sole trader or partnership business structure doesn't need to be registered with the Companies House. However, they must be registered with HMRC for tax purposes.

Advantages of Registering a UK Company

Here are some of the advantages of Registering a Company in the UK.

1. Easy and Straightforward Incorporation process

Registration of a UK company can easily be completed online through the Companies House website. This makes it generally easy for everyone to register a Company. Apart from that, the registration fees are not expensive compared to some other countries.

2. The company name is secured

Once your company has been registered, the company automatically has the name to itself. With that, no other company can incorporate their business with your company name or even use something similar. With that, you don't have to worry about differentiating your business from another person's own. Members of the public are also protected from the confusion of separating a company from another.

3. Opportunities to grow and expand

If you register your business within a jurisdiction within the UK let's say Scotland, you can easily expand the business to England and Ireland in the future. Apart from that, you can expand your business to other European countries.

4. Funding and Investment opportunities

Registering your company makes you eligible for funding and Investment opportunities. Most investors who are willing to contribute to your business would want to be sure that your business is duly registered. Apart from that you would be able to get loans, government grants and so on when you register your business within the UK

5. Tax incentives

When you register your business in the UK, you will also be required to keep up with the tax payment. Adhering to the rules and regulations of the tax authority makes you eligible for some tax incentives and benefits like research and development tax credits, tax breaks etc. All of these help reduce the tax liabilities of your company.

Form Your Company with Incorpuk Today

At Incorpuk, we will help you through the company formation process and file your confirmation statements to help your business stay compliant. Whether you're a UK resident or a non-UK resident, our team is ready to provide guidance and help you establish your company in the UK. Contact us here today.

Conclusion

For any company to operate legally within the UK, it must be registered. While it is quite straightforward to register one, the requirements needed for a company registration must be well understood by every intending business owner. This guide therefore explains all you need to know about UK Company registration requirements. Still, have questions about What is required to register a company in the UK? Kindly contact one of our experts here for help.