The first obstacle a business owner is likely to face is incorporating their company into a UK business so that the company can function as an independent and legally-constituted entity.

A company must be registered at Companies House to be a company in the Companies Act 2006. If it is incorporated as a brand new entity, the company is required to notify the Companies House and file.

Forming a company can be daunting for startup founders who want a way to register their company. The legal framework for companies is complex, with myriad legal regulations.

Registering a company can be difficult to comprehend. This guide provides the essentials you must consider and the procedures you will need to follow when you choose to incorporate your company within the United Kingdom.

Incorporating A UK Company

You must follow the steps below to submit your application to start incorporating a UK company.

Company Name and Registered Offices

If you are considering incorporating, choosing a specific company name is essential. Check if the company's name is list in the registrar for companies. Also, it would help if you examined your name against the UK Intellectual Property Office trademarks register in case you infringe on a trademark already used.

Also, you must ensure that the name of your business will not be view as misleading or harmful by the general public. Additionally, specific words and phrases need approval from the Secretary of State.

It is also necessary to select an official address for the business, which is a registered office. Government agencies such as HMRC can send important information such as Legal notices, notifications and other statutory updates.

When you choose your address, you should ensure that it's in the country where the business was established and is incorporated and physically located in that region.

It doesn't need to be where the company can conduct its business. For instance, if a firm is register and incorporated with the government of Northern Ireland, the company's registered office has to be located in Northern Ireland.

You may also establish an address for service so that the company's director can be notified by other people, like third parties, concerning the business. The address could be the one that is the same as or different from the registered office address, for example, the director's residence address.

Members, officers and Persons of Significant Control

The number of directors and officers needed to incorporate will depend on the type of business you're signing up for. For instance, the private sector requires at least one director if stipulated in the company's constitution and does not need an office secretary.

A public company needs at least two directors, one of whom is an individual, in contrast to a different company, and a certified secretary.

Also, you must ensure that you've identified all persons with Significant Control (PSC). They, usually shareholders or guarantors, are the owners or managers of the company and thus will be consider the ones who have significant control over the company.

Memorandum and Articles of Association

A Memorandum of Association after this, the "Memorandum" declares that the company intends to establish a business and become its member upon its creation.

The reforms in the Companies Act 2006 means that the Memorandum of Association is a smaller, more straightforward document than before, as it is part of the Articles of Association now, containing the Constitutional regulations governing the business.

After incorporation is when the Memorandum can't be modified or altered. The required Memorandum language in Companies Registration Regulations 2008 2008/3014 and use this format to prepare it or download a Proforma form from gov.UK.

As previously mentioned, your business must also possess Articles of Association ('Articles') which contain the company's constitution and serve as your personal and internal rules book.

Articles are legally binding to the company and its members and intended to define procedures. The articles typically include guidelines on how the company pays dividends, the responsibilities of directors, director(s) and how decisions taken along with vote rights and procedures.

In completing the application to incorporate and register your company, it is essential to determine what you've adopted from the model article in full, or with modifications or if you've decided to use bespoke documents and supply Companies House with copies of the new articles you have adopted.

If you do not specify which articles you have adopted will result in the automatic application of the model article that is appropriate for the type of company you are in.

Share Structures (where relevant)

When you form a company with share capital, you'll need to decide the number of shares you'll issue. Shares define the part in the business that a shareholder has. Your shares determine your financial obligations to the company.

Their nominal value is the one that determines this. Most businesses assign a nominal amount of PS1 to each share; however, the amount you choose depends on you. However, you must offer more than one share for each member.

After the above is agree upon, you must provide the statement of capital and the initial shareholders. If it is an unincorporated private company limited by guarantee, you'll require a declaration of guarantee.

Choosing a SIC Code

If you apply, you'll have to provide Companies House with details about your company's business operations. You must include the industry standard classification code (SIC) in your application to accomplish this. If more than one code applies to your business, you can input more than one SIC code.

Application

To incorporate a business, you must fill out the request (form IN01) that contains previously provided information. It is possible to incorporate your business in three methods:

Web Services

Setting up a Limited Company and Register with the Corporation Tax service is the quickest method to register with HMRC and Companies House. Companies House and HMRC and an optional PAYE.

The service is available to private limited firms by shares or guarantees and Community Interest Companies (CIC). The setup cost for this service is PS12 (PS27 when it is CIC) CIC), and while there is no same-day service, simple applications typically processed within 24 hours.

Paper Filing

Paper filing can take longer to complete than incorporating your business using web services since the documents need to be sent in paper to the appropriate offices.

The fee for this service is PS40. However, the cost will be PS20 when the registered office is located in Wales, and the documents filed in Welsh or incorporating an unlimited business.

Straightforward applications typically processed within five days after the date of receipt.

Electronic Software Filing

You can submit your application for incorporation using suitable equipped software, possibly provided by an agent for the formation of a company. The typical cost to file electronically is PS10.

Straightforward applications usually get completed within 24 hours; however, should you need an assurance of same-day service, the fee is PS30, provided your application is received before 3 pm, Monday through Friday.

If the request and documents meet the requirements, Companies House will incorporate the company and issue the certificate of incorporation, which is the official inscription of the business.