Company Formation Explained
24 February 2016
WHAT IS COMPANY FORMATION?
Company formation is the process of legally incorporating a business. Once incorporated as a limited company or LLP, it becomes an individual business entity with its own rights and liabilities.
As limited companies are considered individual, they are separated entirely from their owners with regards to liability, finance, and assets. Unincorporated companies are not viewed by the law as a legal entity of its own. This leaves the individual solely responsible for any debts or shortcomings which might occur.
Thankfully, the formation process is simple and straight forward. Only one person is required and an application can be filled out online or over the phone. The application is then forwarded to Companies House and, providing there are no errors, is normally granted within twenty-four hours.
WHAT IS NEEDED?
You will need the following to form a company in the UK:
- A company name
- A registered office address in the UK
- At least one Director and shareholder
- A share capital
The Company Shop can verify that your name is free to use and also offer a registered office service at an additional fee. It should also be noted that the director and shareholder may be the same person so only one person is needed to form a company!
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.
If you have any further questions in relation to forming your own company, or you are ready to make the leap from sole trader, do not hesitate to give us a call on 028 9055 9955 or contact us via our website.
"We have worked with Des and the team at The Company Shop for 10 Years ...
Brendan Corr, Corr & Corr Chartered Accountants