Forming a company of your own is your first crucial step towards achieving a combination of self-employment and financial security. Before you take the plunge, however, having some good knowledge about company formation will help you to do things the right way. Some factors are to be kept in mind before you even think about registering your company. These are,
1. Go for a Limited Company: When you are opening up a small company, it is always a good idea to register it as a limited company. That way, the shareholders', directors' or your personal assets will not be affected by the financial status of the company. This will give you and the other people of the company a lot of financial immunity.
2. Name it properly and choose the type: You will have to choose a name for your company first, and confirm thorough the registration offices that the name has not been registered already. Once you have chosen the name, decide whether you will be registering it as a limited company, a non-profit organization, a charity house or a limited partnership company. This is important, as it will also form a part of your company name.
3. Fill out the docs: Once you have chosen the name of your choice, start filing the necessary documents. Pay the registration fee to the authorities first. Then, prepare the Memorandum of Association and the Articles of Association yourself, or have your lawyer or the company formation agent prepare those for you. There are a few other forms to be filled up as well. These forms contain information about the shareholders' rights, the permanent physical address of the company, Directors' powers and the name and address of the Company Secretary. Without filing these important bits of information, the registration process cannot be completed.
4. Hire a good formation agent: If you are confident about your or your lawyer's abilities and knowledge depth regarding establishment of a company, fine. If not, however, hiring a good formation agent will be your best option for setting up your company properly with respect to legal formalities. Hire a formation agent who has good experience and reputation. If you have friends who run businesses of their own, consult their opinions.
Once you have completed the procedures mentioned above, your company will be registered and ready for commencing operations. All the above steps can also be carried out via online sites nowadays, but opt for this method only if you are knowledgeable about all applicable laws and procedures.
As part of one of the UK's largest company formations agent, with 25 years experience, Company Formations 24.7 offer a fast, straightforward and professional service and have tailored three great company formation packages.