English Company Formation

Forming a Corporation – Company Incorporation – Company Foundation – Formation of Company


Why is it worth starting a British company?

See our compilation by clicking on the link below: The Advantages of Starting an English Company

 

General information about starting a business in England:

Basically, each type of English company is registered in the same way, it is just that the registration period for Limited (LTD) can be as short as one working day, while for Limited by Guarantee (LBG) it can take up to 1 week, and for Public Limited Company (PLC) it can take up to 2 weeks. When the company is incorporated, it is entered in the public register of companies at the English Companies House, where it is given a Company Number and a tax number for corporation tax purposes. (UTR Number) This tax number should not be confused with the tax number of companies in other countries, as the UK tax number does not need to be included on the invoice issued. In England, this number is only relevant to the company and the taxable amount.

The new company should be seen as a newborn baby. It is born!!!! Get dressed quickly to avoid catching a cold!

The little newborn company needs to be dressed quickly to avoid catching a cold. It must be equipped with devices to protect it from unpleasant things, so the company must get registrations!

There are different registrations that the company should have and there are registrations that should only be obtained when they arise.

Once a company is incorporated, it must be registered with the DPA. (Data registration) If the UK company wishes to trade with a company in an EU country, it must also comply with the GDPR regulations. (GDPR)

It is reasonable for the company to have a “government window” registration. (Government Gateway registration) Through this account, the company can monitor returns and claims received by the authority and processed/not processed by the authority.

In addition to the mandatory registrations, there are also optional registrations, such as the PAYE registration, which is the employer registration that must be done if the company needs employees. Otherwise, it is optional. This registration must be done before paying the employees’ wages, which usually takes two weeks.

If the company starts to employ staff, you can expect to receive a letter from the company within a few months informing you that your company has been required to register with the pension fund. (Pension Regulator) As English law makes it compulsory to protect employees, any company that pays wages or benefits to employees, i.e. provides income, is obliged to register the company and its employees with the pension fund. Here the obligation is split in two. On the one hand, the company is obliged to register, and on the other hand, the employee must also be registered for a pension. For the company, the company accountant will, of course, carry out the registration and its management, but the employee may decide not to register with the company accountant, especially if he has already registered at his previous place of work, but to manage his own pension account.

The other compulsory registration element, VAT registration, is mandatory if the company’s income from its activities reaches £85,000. Otherwise, it is “voluntary” to apply for VAT registration.

 

Shares

The child has a parent, guardian or custodian. The company has an owner. While the parent can prove kinship with a birth certificate, the company can be proved by holding shares. Shares have a number and a nominal value. The nominal value and the percentage of shares held determine the ownership of a person or another company over the company issuing the shares. The more shares a person owns in a company, the more ownership he or she has in the company if the shares and their nominal value are equal. If the company has a share capital of £100 pounds and has 100 shares with a nominal value of £1, then 51% or more of the shares are considered to be significant influence.

In the case of a PLC, there are several types of shares, usually there is an ‘inner circle’ and an ‘outer circle’, where shares give different rights to the holders of the shares in the company.

An exception to this is (LBG) because it is not created for profit but for community or humanitarian reasons and shareholders do not receive dividends from the company in proportion to the amount/size of share they own, but everyone owns the company equally at £1. No dividends can be collected by the shareholders from this type of company! If four people form an LBG, their shares will only be worth £1.- each, so the Limited by Guarantee (LBG) will only be formed for a total of £4.-.

 

Investors

We deal with the three popular types of company: LTD – PLC – LBG. The rule for all the companies listed is that the director cannot be disqualified from holding public office and cannot be disqualified from managing the company.

This is important because the director alone is the person responsible for the affairs of the company. You could say that; he carries the company on his back. His name will be on the company’s bank card, not the owner or secretary. The director will also have access to the account and will sign the contracts.

 

Secretariat

Secretary is the person or company that will provide the secretarial services for the company being incorporated. For an LTD this is not mandatory, however for an LBG and a PLC it is expected. The case of a PLC differs from the others in that a qualified secretary must be employed. A person or company that is certified by the English authorities to do so. In addition, a solicitor and a qualified accountant/bookkeeper can also fill this position. We have all three.

 

Selection of activities

All UK companies must identify the activity in which they wish to start in each sector. In contrast to the practice in other countries, English companies can specify a maximum of 4, or four, activities at the time of incorporation. These activities can be easily changed during the year by means of a Confirmation Statement.

 

Why do people start an English company?

 

 

How to start a company in England

  1. Check if the chosen company name is available
  2. Select the type of company that suits you (LTD – PLC – LBG)
  3. Select the company formation package that suits you
  4. Fill in the company formation form
  5. Pay the fee for the company formation package you have chosen in the Symfalogic Web Store (https://symfalogic.com/store/)
  6. Verify on the copy of the order form sent to your email address that you have entered the correct details for the company formation
  7. Log in to your customer portal using the link provided
  8. Check your details there
  9. Limited (LTD) you will receive your company formation notifications, company papers or certificates the next day if you order a Limited Limited Company (PLC), 2 weeks if you order a Public Limited Company, and 1 week if you order a Limited by Guarantee (LBG).

 

  1. Company name verification: https://symfalogic.co.uk/checking-english-company-name/


  2. Select company type:

3. See our English Business Start-up Comparison Price Table:

(select your package here and the site will guide you through the company formation process)

4. Learn about our mentor program

5. Learn about our accounting packages for startups: https://simfalogic.co.uk/konyveles-indulo-vallalkozasok-reszere-artablazat/

 

Directory Services

The registered office is the address to which the postman does not drop the mail in a post box placed in the field, but a place where the company’s documents are kept, from where the company conducts its business and where the tax authority people can consult with the company’s representatives about the company’s affairs. As all businesses in England are required to have a registered office address, it is easier to choose an address for incorporation that gives the company prestige or is more economically appropriate. Financially, it is not just the one that is cheaper that is right, but also the one that is more profitable. E.g. the further away a head office address is, the further you have to drive in accounting..

 

 

England Company Formation – Scottish Company Formation – Northern Ireland Company Formation – Wales Company Formation

Starting a business in the UK today couldn’t be easier. Company formation is online. The company registry verifies the information submitted and then sets up the company. The company documents are also sent online. You don’t need a lawyer or a notary to set up a company. No countersignature or stamp is required. It therefore makes sense that the new company can be born as a “lost child”. It is therefore necessary to set up the company with a company formation agency and then to contract an accountant as soon as possible. It is ideal to find a company formation and accountancy in the same firm. With us, you can get company formation, head office services and bookkeeping, so you can be sure that we will pay attention to your company. And if you join our “New story” programme, we will mentor your business.

 

 

Further company formations:

After incorporation, the selection of an accounting package is the most important step in the process to ensure that the company’s accounting data is adequate for the subsequent move forward. (To apply for and obtain grants, loans, tenders, etc.) Once you have ordered the accounting package, you can start the activities from which you will generate income.

In the case of a Limited (LTD), there will come a time when you need to move on. It needs to establish itself as a higher, higher quality company in its own market, because, for example, its revenues or the purpose of the company has become larger than it thought when it set up the Ltd. Sticking with the above point; The child has reached adulthood! There are two options for the company to move up, depending on its activities. The general step is that the company must move up from its Limited (LTD) status, i.e. it must convert to a Public Limited Company, i.e. (PLC). This is also a company formation, as unlike in the case of a PLC, the persons or companies holding shares in a ltd cannot trade, i.e. sell their shares to anyone they own. A plc mostly issues shares to raise capital. These shares can be bought and sold on stock exchanges. Hence there is a change in ownership structure in the company, as in this case millions of people can own the same company at the same time, so there is a need to regulate who can influence the company, to what extent and with what influence. This is why the types of shares issued may differ. A PLC is created for profit, whereas in the case of an LBG, it continues to operate as a non-profit organisation.

 

Business start-up in other countries:

Starting a business is not a one-off exercise. Sometimes, when the company is already making such a profit that it needs to be split up, or wants to enter the international market in order to be present in the region or continent it needs (e.g. in the US – Delaware, in Asia – Hong Kong, in the EU – Italy, in Africa – Dubai), it is necessary to incorporate. For example, the US based Apple – Ireland based company…

When expanding internationally, the goal is always different, but usually companies set up a company because of the lower taxes, cheaper labour and bigger market. This gives rise to subsidiaries.

This should not be confused with franchising. Franchising is a system of separate businesses based on a cooperative agreement between the franchise system owner (franchisor) and the individual franchisee (transferee). To be a franchise “transferee”, one must also; establish a company in the country where the franchise is located.

 

Have further questions? – Then don’t hesitate to contact us

on any of our contact details!

 

Phone: +44 (0) 1357 – 340 – 000

Email: info@symfalogic.co.uk

Skype: Symfalogic Corporation

 

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