CorporateLaw

Company Formation in UK

company_formation_in_ukThe process of Business incorporation in UK is known as Company Formation or Company Registration and as per UK Company Law, a corporation or company is considered to be a separate body from the people who own and operate it.

Many companies today in UK are being formed the same day electronically, by individuals, solicitors, specialized agents or accountants. For less than £100 many agents offer company formation packages, the paper work cost that goes to the Companies House is £20. This fee excludes witnessing documents or preparing articles of association and the memorandum, which is usually carried out, for the company by a accountant or solicitor. It takes up to four weeks to form a company using the conventional method of paper filling.

According to the Companies Act 2006, section 9 states that those who choose to form a company must send the following documents to the Companies Registrar along with the registration fee.

Articles of Association:- These also referred to as just articles, is a document with a set of rules that govern the internal affairs of the company. The company’s articles must be signed by each subscriber before a witness, who is then to attest these signatures when this document is delivered to the Registrar. In such an event when there are no articles registered for the new company then default articles also known as model articles will be obtained from the IN01 form and by choice registered.

Form IN01:- This form contains the intended situation required by the registered office, which will either be in Scotland, Wales, England and Wales and Northern Ireland. The form includes the details on the directors and consenting secretary, details of subscribers and share capital; that is if the company shares are limited. It also includes the statement of compliance, stating that it fully complies with the Companies Act 2006.

Memorandum of Associations:- This document has the signatures and names of the subscribers who want to create the company. In cases where a company is limited by shares then each subscriber is committed to take at least one share.

The Electronic process is carried out using software compatible with the Companies House eFiling service. Company formation agents are directly linked into Company House to look up and submit company names. A list of company formation agent that have passed the integrated test are available with Companies House.

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