When you have a great idea for a company, you might want to form it as soon as possible so that you can start to make money. Owning a company is a fantastic experience, especially as you are your own boss and the decisions which you make can have a very positive impact on how successful it is. You can also work the hours which suit your lifestyle and a manager won’t complain that you are late. However, if you haven’t owned a company before, you won’t know how to register it. Although a company can be registered via a paper-based application, it is highly recommended that you form it online.
It’s very easy to register a company online
When a company is registered online, you’ll save yourself a lot of money. If you form a company via the postal service, you will have to pay £40. The cost of company registrations online is less than half the price because you only have to pay £18. If you want to form a limited company on the same day, the cost is £100 for a paper-based application and £40 when it is formed online. To register a company online, you have to first decide what its name will be.
Create a company name – Many rules govern what can and cannot be in a limited company’s name. A company name should not contain any obscene words nor should it have a reference to a governmental department. A company name cannot be similar to one which is already being used. The Registrar’s Index of Company Names will enable you to know whether a company name abides by such rules as well as whether it is already being used by another business.
When you have found a name which can be used, you cannot presume that you can have it because you’ve only found out that it is available. After contacting Companies House and registering it, its name can therefore be used. As well as registering a limited company’s name with Companies House, there are many documents which you have to submit so that it can begin to trade. This all makes the process of company registrations online very simple and efficient.
Form IN01 Basic information about a company is entered onto Form IN01. The name of each director has to be provided as well as a company’s share value. The industry which a company will work in also has to be provided. For example, if a company will deliver building services, Companies House can be told that it will specialise in construction.
Articles of Association This important document details how a company will be run and explains its day-to-day operations. Articles of Association were introduced under the Companies Act 2006 which aims to reduce the amount of administration which a company has to do. Totally unique Articles of Association can be provided to Companies House but this isn’t necessary. This is because a set document can be submitted after pertinent information has been provided.
Memorandum of Association Personal information about shareholders is entered onto this form. Not only are their names and addresses provided but also the number of shares that they intend to purchase. Although it is not relevant at the moment, Companies House will need to be informed when your company gets further shareholders.
What’s next?
Once these documents have been sent to Companies House, you cannot presume that your company exists. In fact, there might be discrepancies with the information you provide because the wrong data was entered onto one of the forms. Only when Companies House has given can a company start to make money. However, once you have been told that your company exists, it can begin trading and the company registrations online process has ended. Registering a company online doesn’t have to be difficult or time-consuming when accurate information is entered onto the aforementioned documents.
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