There are more and more people that are looking at forming a company of their own these days, and doing this online seems to be the way in which the world is heading. So, if you are planning on doing this yourself and want to ensure that everything is above board, you will want to register your organisation with Companies House. You may be wondering what some of the key steps involved are. Well, we will be running through some of them right here and now.
Select a Business Structure
Your first area of responsibility is going to be to select a business structure. The most popular of these that is regularly registered in the UK is a private company limited by shares. Ultimately, this is a structure that provides a high level of tax efficiency, as well as offering financial protection if the directors of the company happen to get into difficulty at some point down the line.
Pick a Company Name
Your company name is going to represent what you are all about as an organisation, so it makes sense that you are careful over picking one that is right for you. You should also check Companies House to ensure that the name that you want is available. You may choose any company name, provided it is not identical to any other company name already registered at Companies House, and the name is not offensive. The chosen name also cannot contain a 'sensitive' word or expression, or suggest a connection with government or local authorities, unless you get permission.
Enter Your Company Information
You then have the task of putting in all the information about your company. First of all, this means where your registered office is located. This is where all of your company mail is going to be directed, so the directors of the company need to be contactable at this address. Speaking of directors, every single company must have at least one of them. You will need to put in some crucial information such as name, date of birth, address, etc.
You then need to work out how your shares are going to be divided between your various shareholders. At incorporation, the company must issue a minimum of one share. If there is more than one shareholder, you must issue at least one share per shareholder. If you wish to be the sole owner of the company, you must issue a single share to own 100% of the company. However, having only 1 share may complicate things should you wish to split ownership in the future. A more common practice is to issue an amount which is divisible to allow future split or change of ownership, for example, 100 shares of £1 each upon incorporation with each share representing 1% of the company.
Fill in the Memorandum and Articles of Association
After, you have some more documents that need to be filled out, which will formalise how the company is going to be run, including the memorandum and articles of association. These need to be agreed upon by all of the company directors and shareholders, as well as the company secretary.
Once you are happy that everything has been filled in successfully, you can then set about submitting it all to Companies House. You should accompany this with a glass of your favourite drink and a toast!
When you form a company online, you need to do so in a detailed way to ensure that you tick all of the necessary boxes and fill in everything that you are supposed to correctly.