Everything You Need To Know To Incorporate Your Company (UK)

Incorporating a company in the UK can seem daunting, especially if you've been operating as a sole trader and the process is new to you. Having recognised that there are numerous moving parts involved, I'm here to help you navigate this crucial step in the growth of your business. By sharing my experience and knowledge, I aim to provide clarity on the various options available when incorporating a company, whether it's doing it yourself or seeking professional assistance.

The importance of getting the incorporation process right cannot be understated, as it can impact your business in the long run. I'll guide you through some key considerations to think about before taking the plunge, and touch on software tools that can help streamline your online business operations. Additionally, I'll share a few insights to help you avoid common pitfalls and set your new limited company up for success.

Key Takeaways

• Incorporating a company in the UK can be a turning point for your business, so ensure you make the right decision.
• Consider whether doing it yourself or seeking professional help is best suited for your incorporation process.
• Keep in mind pre-incorporation considerations and software tools that can make your online business operations more efficient.

Incorporating a Company in the UK

Incorporating a company in the UK is a process I have gone through myself, and I can provide some helpful insights on how to proceed. Firstly, if you are living in the UK or looking to set up a limited company here, you will need to visit the gov.uk website for registration. UK incorporation typically costs £12 and is usually completed within 24 hours. Before proceeding with company incorporation, ensure you have your town of birth, mother's maiden name, father's first name, telephone number, National Insurance number, and passport number.

When deciding whether to trade as a sole trader or a limited company, it's essential to weigh the pros and cons of each option. I have created a video that discusses this topic in depth, which you can refer to for guidance. If you're confident that incorporating a limited company is the right move for you, then carry on with the registration process. If you prefer registering your company online, you can do so using the government Gateway user ID that you will receive during the process. Additionally, if you're transitioning from sole trader to limited company, you will need a separate government Gateway ID.

However, if you're unsure of how to proceed with the incorporation process, you can seek help from various services or specialists. Companies such as Your Company Formations, Companies Made Simple, and Inform Direct are all options to consider for assistance with company incorporation. Inform Direct, for example, offers a user-friendly platform that stores all necessary documents and company information, making it easily accessible from any device.

Before incorporating, there are a few factors to consider. Determine whether you will be the sole person with significant control in your company, acting as the director, main shareholder, and possibly the secretary. If you are starting a business with partners, consider drafting a Founder's agreement or shareholder's agreement with a legal entity's involvement. Additionally, address issues such as using a personal address or virtual address for your company, ensuring that your company name is unique and doesn't conflict with trademarks or other companies, and working with an accountant to file end-of-year tax returns.

In conclusion, incorporating a company in the UK requires research and careful decision-making. Utilize the available resources, and don't hesitate to seek professional help as needed.

Choosing the Incorporation Method

Using Gov.UK Website

Firstly, to incorporate a company in the UK, the quickest and simplest method is going through the direct route with the Gov.UK website. To get started, you'll need your town of birth, your mother's maiden name, your father's first name, a telephone number, National Insurance number, and a passport number. The whole process will typically cost £12 and your company is usually registered within 24 hours. Please note that if you are transferring from a sole trader to a limited company, you'll need a different Government Gateway ID.

Another option for incorporation is manually filling out a hard copy of the IN01 form, which can be found through a quick Google search. This method requires printing and sending the form with a cheque to complete the process. This could be useful if you're not comfortable with online forms.

Incorporating with a Specialist Service

If you don't trust yourself to fill out these online forms or prefer to have a specialist handle the process, there are several options available. By searching for companies that help incorporate businesses in the UK, you'll find a few services such as Your Company Formations, Companies Made Simple, and Inform Direct.

I've personally used Companies Made Simple and Inform Direct in the past, and I find them really simple to use. They guide you through the process and ensure that the forms are filled out correctly, making it easier for those who are not confident handling this task on their own.

For example, I use Inform Direct to manage my company, Tim Peakman Limited. This platform offers a user-friendly dashboard that displays all the company's details like incorporation date, officers, shareholders, share classes, and people with significant control. Inform Direct not only handles the formation process, but it's also useful for managing documents, filing annual reports, and raising share certificates when needed.

When choosing a method for incorporating your new UK business, understand your situation, options, and have all the necessary information ready. Remember that there are several factors to consider. Regardless of the method chosen, I highly recommend working consistently with an accountant to help you manage and file your tax returns.

Pre-Incorporation Considerations

Sole Trader or Limited Company

Before incorporating your company, it's important to decide whether trading as a sole trader or limited company is the right choice for you. There are advantages and disadvantages to both, and it's crucial to thoroughly weigh up the options before making a decision.

Founder's Agreement

If you're starting a business with a partner, it's recommended to put together a Founder's Agreement or a Shareholders Agreement. Involving a legal entity in drafting these agreements is a good idea to ensure all important aspects are covered, and any potential issues are addressed before they become critical.

Registered Address Choices

When incorporating a company, you'll need to consider the address to use as your registered office. You can choose between using your personal address or a virtual address. Keep in mind that your personal address will be published online, so opting for a virtual address can offer some privacy. The London Office is one example of a virtual address service that can forward any mail sent to your registered office address.

Company Name Similarities

Before incorporating your company, conduct a Google search to check for similar company names or trademarks to avoid confusion with other businesses. While you're required to choose a unique company name to incorporate, being aware of potential similarities can help you make an informed choice and minimize conflicts down the line.

Working with an Accountant

Lastly, consider working with an accountant to help with your end-of-year tax returns and self-assessment tax returns. While it's possible to manage these tasks yourself, hiring a specialist can help ensure accuracy, compliance, and peace of mind.

Software Tools for Online Business

In my experience, setting up and running an online business requires a variety of software tools. I've created a checklist of the software tools, both free and paid, that I personally use for my online business. You can access this checklist by heading over to timpeekman.com/tools. By using the right tools, you can ensure that your online business is efficient and well-organised.

One key aspect of running a successful online business is staying organised and maintaining proper documentation. I use a platform called Inform Direct to manage my company information such as offices, shareholders, and people with significant control. The platform is user-friendly and lets me access my important documents and reports from any device, at any time. It also allows me to keep everything digital, reducing the need for paper copies and physical storage.

While incorporating a company, it's important to be aware of the various factors that need to be considered, such as whether you want to trade as a sole trader or a limited company. You can watch my full video on this topic by following the link provided in the transcript. Do some research and consult with a professional if needed to make the right decision for your situation.

If you decide to incorporate a company, you have the option of either doing it yourself or using a specialist service. I have used companies such as Your Company Formations, Companies Made Simple, and Inform Direct in the past and found them to be reliable and helpful. These services ensure that the incorporation process is completed correctly and efficiently.

It's also important to consider the address you'll use for your registered office, as it will be published online. I use a virtual office provided by The London Office, which automatically forwards any mail sent to my registered address. This keeps my personal address private while still allowing me to receive important correspondence.

Lastly, I always recommend working with an accountant to ensure that your end of year tax returns and self-assessment tax returns are submitted correctly. This can save you time, money, and potential issues with tax authorities.

By staying organised and using the right tools, you can focus on growing your online business and achieving success. Remember to always do thorough research and work with trusted professionals to ensure that you're making the best decisions for your business.