Choose your business structure:
- Private Limited Company (Ltd): Offers limited liability protection, meaning the company’s finances are separate from the personal finances of its owners (shareholders).
- Sole Trader: The simplest form of business structure where you run your own business as an individual and keep all the profits after tax. You are personally responsible for any debts your business incurs.
- Partnership: A business owned and run by two or more people who share the profits and responsibilities.
Choose a company name:
- Ensure the name is unique and not already in use by another company.
- Check availability on the Companies House website.
- Consider the availability of a matching domain name if you plan to have an online presence.
Registered office address:
- This is the official address of your company where official documents will be sent.
- It can be your home address or a separate address specifically for your business.
- It must be in the same part of the UK where your company is registered (e.g., if your company is registered in England and Wales, your registered office address must be in England or Wales).
Appoint directors and a company secretary (optional):
- A private limited company must have at least one director who is a natural person (not a corporate entity).
- A company secretary is optional for private companies. They assist with administrative tasks and ensure the company complies with legal requirements.
Shareholders:
- At least one shareholder is required for a private limited company.
- Shareholders can be individuals or corporate entities.
Memorandum and articles of association:
- The memorandum outlines the company’s objectives and powers.
- The articles of association contain the rules for running the company’s internal affairs.
- Templates for these documents are available from Companies House or legal professionals.
Register your company:
- Register with Companies House online or by postal application.
- Provide information about your company, directors, shareholders, and registered office address.
- Pay the registration fee.
Tax registration:
- Register for corporation tax with HM Revenue & Customs (HMRC) within three months of starting to trade.
- You can register online via the HMRC website.
Other registrations:
- Register for VAT (Value Added Tax) if your turnover exceeds the VAT threshold (currently £85,000).
- Register for PAYE (Pay As You Earn) if you plan to employ staff.
Business bank account:
- Open a business bank account separate from your personal account.
- Choose a bank that offers business accounts and meets your business needs.
Compliance:
- File annual accounts with Companies House.
- File an annual confirmation statement with Companies House.
- Submit tax returns to HMRC.
- Keep accurate records of your company’s finances and activities.
- Comply with all relevant regulations and legislation governing your industry.
By following these steps and seeking professional advice when necessary, you can successfully set up and run a company in the UK.