Structure of companies:
There are different types of companies that are operating in various parts of the world. The most well-known are
- the private limited company and
- Limited Liability Partnership (LLP)
It is necessary to understand how both of them work before going for company formation.
In a private limited company, the owner can be a single person who enjoys the benefits and profits of the company. Whereas in a limited liability partnership, the sole of traditional partnership is kept. In such type of companies, the shares of the company are sold to a group of people who share the profits depending upon the share they have in the company.
Tips for setting up different types of companies:
Now that you know what types of business options are available, you can choose the type that suits your needs for UK company registration. Below are some tips that you must consider while submitting your application to companies’ houses in the UK for a limited company formation in the UK, be it LLP or sole owner.
A suitable company name:
What might be the most important step in the formation of the company is choosing the name of your company. You need to select a unique name for your company that has not been taken up by any company before you in order to avoid any confusion or future issues. If the name that you chose has already been taken, your application for UK company registration of your business will be rejected by the company house.
Set up the company as per your needs:
Select the type of company that you will need. This selection is important before the registration as changing the type of the company after it has been registered involves a lot of legal issues. So if you are going to change the type of the company once it has been registered, you will have to spend a lot of money, time and go through lengthy legal procedures.
Avoid grammatical and spelling mistakes:
Another very important and crucial step when you submit your application is that you should try to avoid any and all grammatical and spelling mistakes. If you have spelled any names or important information in the wrong way, not only can it result in the rejection of your application but it can also cause a lot of problems in the future for your company as well. This step should be given a lot of importance when you are going for Vat and Paye registration UK.
Provide complete names:
Another step to keep in mind for UK limited company formation online is that you should provide complete names of all the shareholders and directors. Avoid giving initials instead of complete names because complete names will be used in the future for a lot of legal issues regarding the company.
Provide a suitable address:
The address that you provide for your company must be suitable. For example, if the name of your company has the name of a country or a place in it, like Birmingham or Scotland, then the address of the company should also be of Birmingham or Scotland respectively. If you have not provided a realistic address and instead given a PO Box number etc. this might result in the rejection of your application as well.
The number of shares:
Another strict rule that is followed by Company House for online company registration is that the number of shares should not be unreasonable. The shares must be distributed between the different shareholders according to the percentage of the profits they will receive.
Why you should choose Easy Company Formation:
Setting up a company might feel like a daunting and lengthy process but in reality, it is very easy. To make it even easier for the people of the UK, Easy Company Formation is providing its services. You can choose from various packages that we offer depending upon your needs. Our packages start from as low as £ 16.99 and go up to £ 1299.
Apart from our affordable prices, we also provide unlimited 24/7 support to our clients even after the registration of their company. In this way, the people who have taken our services are not left alone with their problems in the early stages of their business.