Starting a business is easier, faster, and less cost-intensive in the UK than in most other countries in Europe. Nevertheless, you should arm yourself with as much information as possible before registering a business in the UK and starting commercial activities. Before you start your business, ensure that you know what you are doing. Company formation experts at Your Company Formations Ltd recommend first creating a checklist to make sure remember all the essentials. You must also conduct market research to determine the viability of your business, set realistic goals, and raise sufficient capital. Below we share useful tips you should know before registering a company in the UK.
Company formation options in the UK
The UK government offers various business and company formation models. The most common forms of business in the UK are sole proprietorships, partnerships, limited liability partnerships, and limited liability companies.
One of the most important reasons for founding a limited liability company is to limit your personal liability as a shareholder of the company. A limited liability company is an independent trading entity. This means that in the event of bankruptcy or insolvency, the company’s founders will not be personally liable and their personal assets safe. A limited liability company can be either private or public. Some of the main characteristics of limited liability companies in the UK include:
- Independent legal personality. Limited companies enjoy a legal personality that is separate from that of the shareholders. They can hold assets, issue shares and enter contracts.
- Limited liability of shareholders. Limited companies are responsible for debts and liabilities. The liability of each shareholder in regard to the liabilities of the company is generally limited to the amount paid for the respective shares.
- Unlimited shareholders. There is no legal limit to how many shareholders such a limited company may have.
- Founding documents. All limited companies must complete Memorandum and Articles of Association, and a Certificate of Incorporation. Starting a company and obtaining these documents is quick and convenient with the expert help of the team at Your Company Formations.
Choosing a company name
The name of the company should be chosen with care. There are restrictions both in terms of the registration of the name chosen at the establishment and a later name change. The company name must also have the appropriate extension such as LTD or PLC. According to experts, a good company name meets the following three criteria:
- Easy to remember and easy to pronounce
- Not in current use or too similar to an existing business name
- Is relevant to business operations but too specific
Avoid offensive words in your company or using humor/puns. It is also good to check that your chosen name has an affordable web domain name available.
Get expert help starting a UK company
With the support of the helpful team at Your Company Formations, registering a company in the UK is an easy, hassle-free process. All you need to do is visit the website; choose a package; select additional services your business requires and complete the online business registration form. For more information, get in touch today.