Company Formation Explained
24 February 2016
WHAT IS COMPANY FORMATION?
Company formation, in simple terms, is the process of legally incorporating a business within the United Kingdom. Once the business has successfully become incorporated as a limited company or LLP, it becomes an individual business entity with its own rights and liabilities within Companies House.
As these limited companies are considered individual, they are separated entirely from their owners with regards to liability, finance, and assets among other factors. This is a strong benefit to an incorporated business, as unincorporated companies are not viewed by the law as a legal entity of its own, therefore the individual is solely responsible for any debts or shortcomings which may occur.
A huge benefit to company formation is the process, which is simple and straight forward. In order to form a limited company, only one person is required, an application can either be filled out online or over the phone, the details of which would be put into the register and forwarded to Companies House, and providing there are no errors, approval and incorporation is normally granted within twenty-four hours.
WHAT IS NEEDED?
In order to incorporate a limited company, you will need to provide your own company name, (The Company Shop can also verify that the name is free to use and acceptable), a registered office address in either England and Wales, Scotland, or Northern Ireland, (there is a registered office service with the Company Shop at an additional fee), at least one director and shareholder, this can be the same person. Also required is a Memorandum and Articles of Association, and share capital.
WHAT YOU’LL RECEIVE
Once the company has become successfully incorporated, you will receive your certificate of incorporation which confirms that the company now legally exists and will include a unique company number along with the date of formation. You will also receive two copies of your Memorandum and Articles, your Invoice, and an AA01 form should you ever wish to change your accounting reference date.
"We have worked with Des and the team at The Company Shop for 10 Years ...
Brendan Corr, Corr & Corr Chartered Accountants