Benefits of an off the shelf company

In the not so distant past, anyone who wanted to form their own company (or incorporate a company) had to wait for a long time before they could get their company incorporated. This is because creating companies take a lot planning, strategizing and time. However, not all of us have the luxury of time. Most businesses cannot afford to wait for several months or a year before they can form a company. For pressing financial reasons, entrepreneurs often find themselves needing a company as soon as possible. This need and urgency, coupled with an easy online system of registration has created a whole new option for entrepreneurs called off the shelf companies. The creation of off the shelf companies has made a huge difference in the way people form companies. This facility makes it easy and quick for anyone who wishes to own a company in a hurry.

An off-the-shelf company, very loosely defined, is a legally formed but incomplete company. This means that the company has fulfilled all its legal requirements to become registered except for the appointment of its directors. Off-the-shelf companies are available for sale and bring the purchaser the convenience of transforming the company with ease and at a very low cost.

Many company formation agents ‘pre-create’ companies and keep it with them for the use of businesses that need a company urgently or inexpensively. This made it possible for people to acquire a company as and when needed.

Buying an off the shelf company is very easy. First the off the shelf company provider must transfer all of the shares of the company to the buyer. Second they must allow the current directors of the company (if any) to resign in order for the new directors (usually the buyer and/or its appointed directors) to take control of the off the shelf company. After this, the newly appointed directors have all the power to direct the company, manage its assets and take control of its funds. During this time, the buyers may wish to keep the company name under which it has been originally registered or change the name to a new one, which is more in keeping with the nature of their business.

However, with the arrival of online company registration services, it is no longer necessary for businesses to wait to create a new company. So, there is less demand for these off the shelf companies. One of its major drawbacks is that these shelf companies provide much less flexibility to owners than companies that have been custom built around their needs. Even so, one cannot discount the benefits of this option. Off the shelf companies make it very convenient for businesses to become incorporated. There is fewer administrative hassles and expenditure in the creation of the new company when compared to purchasing a ready-made company if you find a shelf company where you do not need to change anything much. In that case, all you may require is possibly change the name of the company, transfer shares and pay stamp duty on the shares transfer.

How to Register Your Company in the UK

Forming your own company could be a dream come true for many people. However, jumping into the process without proper understanding can lead you to waste time and money through unnecessary delays and returned paperwork. So, if you have decided, after some amount of evaluation, that incorporating your business benefits your business, then it is time to learn a little more about how to register your business in the UK. Whether you intend to carry out the registration yourself, or outsource the work to an online business start-up agency, knowing the steps involved will keep you one step ahead in the game.

First of all, you will need to decide on a name for your company. You need to choose a name that is available, as no two businesses are allowed to have similar name in the UK. You can check out the availability of names from the list of names that can be found at the website of Companies House. Then, you also need to decide on the structure of your company. For this, you may enlist the services of an accountant or an attorney, who can guide you on what business structure is most suitable for your business and can bring you the most profits. After that, it is time to get your hands dirty!

From the Companies House website, you will need to download Form 10 and Form 12. You will also need to purchase The Memorandum of Association and The Articles of Association from a Legal stationer. Now you have everything to get you started.

The first form (Form 10) basically collects information regarding the location of the Registered Office and details regarding the Company Secretary and Directors (if any). In this context, it is important to remember that your company would require a physical address in the UK, before it can be incorporated. This is the address to which all important papers relating to your business will be sent. If you do not have an address in England, Wales or Scotland, you may ‘rent’ an address from an agency or a solicitor, who will allow you to use their address for all communication, on the payment of a small fee. However, keep in mind that you will be responsible for your documents that reach this address.

In Form 12, you will find the Declaration of Compliance and the Companies Act 1985, both of which are important in respect of registering your company in the UK. You can keep this form aside at first and move on to the Memorandum and Association of articles.

The Memorandum of Association states the company’s name, physical address, the objectives of the company and its liability. The Articles of Association, which collects details regarding the internal management affairs and running of the company. These are important documents, and you must fill them in precisely so as to avoid errors. Once you fill these up, you must take these forms to a Solicitor, and sign Form 12 in their presence.

Once you have completed these four documents correctly, you may submit the finished documents to Companies House and pay the relevant filing fee. Before you submit your papers, check all the documents once more. If you want the registration to take place in a day, mark the envelope addressed to the ‘New Companies Section’ with “SAME DAY INCORPORATION” typed on it in bold print.