In certain cases, the conditions for forming a corporation are the same whether you live in or outside the UK. However, there are some critical factors to consider when launching a company, regardless of where you live.
Things to keep in mind when forming the company
The steps:
- Register the company name: Since every company must have a unique name, avoid using a name that is too close to a competitor's business trading name;
- Register a director: At least one person over the age of 16 must be in charge of the company; they do not need to be a UK citizen;
- Share the company's stock: If you want to form a company limited by shares, you must have at least one shareholder. This may also be the director(s) or a group of people. You have the option of determining the initial value of the share;
- Make a UK office address registration: The address you choose must be a physical address in the United Kingdom and must be in the same country as the registration of your business. This means that a corporation registered in England, for example, must have an address in England. It is permissible to use a PO Box, but you must also provide a physical address and postcode. On the online registry, the company's address will be made public. For virtual office registration address you can contact Persona Finance;
- Develop a ‘memorandum of association': which is a legal document signed by all of the initial shareholders who agree to form the business, as well as ‘articles of association.' There are the written guidelines for operating the business that have been agreed upon by the shareholders, directors, and company secretary;
- Register as a limited company: You can register as a limited company online for a fee if you have done anything on the list above. Persona Finance can assist you with setting up your company;
- Register for corporation tax: You can register for Corporation Tax and PAYE as an employer online at the same time as you register your business. Within three months of starting a company, you must register for Corporation Tax. Furthermore, starting a company entails some activity such as purchasing, selling, advertising, renting a house, or hiring someone. Allow enough time for the registration process because you will need a Unique Tax Reference sent to your company address before you can complete registration;
- Tax return: Every year, on the designated date, you must also file and publish the company's tax return. This data can be collected by you or an accountant, but it must be done regardless of whether the organisation makes a profit. Your tax return must be sent to both HMRC and Companies House (both government agencies).
Your company will also need a UK bank account. This can be a time-consuming operation, but you can avoid it by registering with a bank in your home country or forming with an agent. You are permitted to exchange with a bank account from another country as long as you make it clear that you are doing so. However, having a UK bank account facilitates trading. Some banks in the United Kingdom will need a company director to visit their premises in order to open an account, but not all.
Persona Finance will support you with the whole process, from registering as a limited company to ensuring you are up to date with all of your finances. Persona Finance can be reached at [enquiries@personafinance.co.uk].
