Tuesday, August 26, 2008

Company formation in UK – What you need to know

Forming your own company is a milestone in life. It is a measure of your achievements thus far. Forming a company changes the way you operate, and it alters your thinking. It puts you in the league of potential bigwigs, and forms the basis of future achievements. Thus, it will change the way you spend money, the way you make decisions and the way you socialize. Undoubtedly, forming your on company will be one of the most demanding challenges you are like to take on.

So, if you are on the verge of becoming your own boss with the freedom to work when and where you want, then you must also have put in a lot of thought into the actual process of company formation. The procedures involved in the formation of a company vary according to the country you want to set up shop in. In this article, let us talk about company formation in the UK.

Company formation in the UK is also known as company registration. The procedure is quite easy, particularly if you take the services of one of several business start-up services. In fact, it may surprise you to know that a large percentage of companies formed in the UK these days are put up electronically!

But before you can start, you have to first decide whether you need to form a limited company, a partnership, an off-the-shelf company or something else. Your business start-up service will guide you regarding the pros and cons of each of these, in case you are not sure about what type of business you should opt for. Every business has certain advantages and disadvantages. For instance, while sole proprietorship is the simplest way to set up your own company, you should keep in mind that the proprietor is personally held liable for any debts and obligations your business incurs. On the other hand, forming a partnership may be cumbersome since partnership agreements have to be drawn up but they may suit your tax needs in the long run. So, decisions such as these have to be taken after serious thought.

After you have decided on the type of company you want to own, company formation in UK is relatively fast. Simply choose a name and you are ready to go. If you are incorporating your company online through online business start-up services, you can check the availability of your chosen company name instantly. These services will also educate you on restrictions on name, if any.

One of the greatest advantages of going to the experts when you are ready to form your company is the ease with which the process proceeds. Online companies that help you form your company will guide you regarding the documents you need to submit, the licenses you may require, whether you need to acquire consent from the authorities etc.

Due to the sheer volume of expertise that servicing companies possess, if you form your company online, you could own your company and get it ready for business in a matter of hours (minimum) to 4-5 days (maximum), depending on the approval from Companies House. So, you can leave the hassle of company formation to the experts while you focus on what you do best – your business!