New companies are springing up all over the United Kingdom. Especially in these challenging times of high unemployment, redundancies and static salaries, more and more people are delving into their inner entrepreneur and coming up with interesting new business ideas. Many people are choosing to start online companies offering products and services which do not require massive warehouses and plush business premises to trade from. However, there are also many who use their trade or profession to start up on their own or with partners and also those who think of something entirely original.
Whatever business you choose to start, it is vital to cover the basics before you go for new company formation in the UK. These include:
• A well-defined business model and strategy
• A comprehensive, realistic and positive business plan including financial forecasts, market assessment, unique selling points and short, medium and long term planning. This is an essential document which you should use regularly to ensure your business is on track and heading in the right direction. A great business plan is also valuable when trying to attract investment and bank loans
• Wide-ranging market research which confirms your product or service is viable, sought after and likely to lead to success
• How you will finance the business, either by loan or individual investments (if applicable)
• Suppliers of products and resources you will need (if applicable)
• Staff (if appropriate)
• Business premises (if appropriate)
There are three ways you can incorporate a company in the UK – directly through Companies House, using their web incorporation service; sending hard copy forms to Companies House; using a formation agent. Many people choose to work with one of the many independent agents for new company formation in the UK.
When you are happy that your business is ready for registration, go online and search for and study the various company formation websites or you can find a list of formation companies on the Companies House website. Look for agents who have been in business for some years and have a range of packs to suit, or can be tailored to, individual new business requirements at a competitive price. Most of the professional and reputable companies will have all the information you require and the facility to contact them to answer any queries you may have. You should also be able to view existing customer feedback to gauge their views on the formation experience with the company.
After choosing a company formation agent to work with, you can start the process. You will be required to provide all the necessary information legally required to run a business. You should have decided on a name for your new company, but do have a couple of alternatives ready, in case of your first choice being already taken. Every company name must be unique and must not contain any offensive words or implication and must not imply any association with any form of government.
Once all the information is checked, a new company formation in the UK can usually be completed within hours. You will then receive an electronic Certificate of Incorporation which. This is a legal document showing your company name and number, and date and place of incorporation. This is an important document and should be safely filed away. You will also receive the Memorandum and Articles of Association and Share Certificates for all your shareholders.