Starting a business demands careful planning and preparation. In fact it is imperative for all the would-be entrepreneurs to take a look at the basics of company formation before they begin their business. Are you a wannabe entrepreneur who is keen to start a business venture in the United Kingdom? Then read on as we tell you more about company formation in UK.
Before anything else, one should possess a valid address in United Kingdom. Remember that prior to registration, the officials will ask for an address proof. The registration process is the second most important thing before starting a firm or a company. While some visit the Companies House in person for the registration procedure, others prefer to fill up the online form.
The registration procedure will not be complete until the entrepreneur fills the Memorandum of Association along with Articles of Association. You have to fill Form 10 and specify the details regarding the organization. One must mention the names of the secretary, officers as well as directors of the company. This form is available online; else you can request for a form through email.
According to the law, the company must have one secretary along with one director. If the secretary is working as a director, you will probably need one more person who will work as a director. After the form is filled, the owner of the company needs to create a memorandum. A memorandum will include the essential details of the company like the name of the company, its liabilities and the type of company you plan to start.
The rules of company formation UK demands that you specify the type of company you are starting. It can have a sole owner or it can also be a partnership firm. An article of incorporation is a must before starting a company. This article will include some of the essential details about the company. This paper should be signed by each and every partner of the company.
Completion of House Form 12 is also a must before company formation UK. A solicitor should be present when the form is signed. All these documents are to be submitted to the Company House. The registration fee is just 20 pounds. All those who do not have enough time, can choose the online services. Now that you are a self-employed person, you need to complete your registration with the Inland Revenue. A self-employed person is also liable to pay Class 2 NI Contribution which amounts to 2.05 pounds per week. As you have registered with the Inland Revenue, you will have to set up the corporate tax and income tax.
However none of the entrepreneurs are required to pay the VAT until the company has completed one year. An accountant will be able to help you with the VAT details.
Learning about the rules and laws of company formation UK can be helpful in a number of ways. If one is self-employed and has an income which is not substantial, he or she can apply for the Small Earnings Income. This is a kind of exemption that you get on your total income. While paying income tax, there are options of paying it in installments. You will know all these from a qualified accountant. United Kingdom has the perfect corporate culture. All the willing entrepreneurs will find ample opportunities to invest and start a business here.