Incorporation is the procedure through which a business organization is registered in order to achieve the status of a limited company. It is a major problem in the United Kingdom due to the rapid development of small firms and aggressive investors seeking to get their enterprises recognised as limited corporations.
However, it is recommended to get the advice of an accountant on the best method to manage a business, whether to register it as a limited company or to run it as is.
Who is qualified to form a corporation?
According to the legal provisions governing company incorporation in the United Kingdom, one or more persons, companies, or other bodies are eligible to form and register a limited company after submitting their names to a memorandum of association, upon which they must confirm their consent to form the company. Such parties must be at least 16 years old; otherwise, they will be rejected.
Types of corporations that can be formed
The four categories of businesses that are accepted are as follows:
- Private companies with shares limitations
- Private companies with guarantee limitations
- Unlimited private companies
- Limited public companies
Methods of incorporation and fees applicable
In the United Kingdom, after establishing a limited company for contracting, there are three primary methods of incorporating a corporation. Each option has its own set of fees for incorporating a business. These are their names:
Filing with computerised software
It is a process that involves the use of appropriately configured software to submit information about the firm in question. However, this technology has limitations in terms of covering spectrum. As a result, they notify their clients of the locations where they may provide their services at specified rates.
The typical charged price for forming a business using electronic software is £10. Alternatively, £30 can be paid for instant incorporation, which is generally completed by 3.00pm Monday through Friday. A simple application, on the other hand, should not take more than 24 hours!
Incorporating a business using web services
Web incorporation is the most safe and dependable approach to form a company online. It saves a lot of time with its quick and easy operations for a basic charge of £12.
However, there is no completion of incorporation within 24 hours, as is the case with electronic software filing. Another restriction of this approach is that only persons filing for a private business with share limits are qualified to use it. Typically, such applicants accept model articles in their entirety, along with a non-incentive naming suggestion.
Paper filing
This technique takes somewhat longer than the electronic method owing to logistical considerations that need time transferring documents to and from the proper offices. Under the impact of two separate viewpoints, two unique charges are applied under this technique.
In terms of the first choice, the usual incorporation fee for regular incorporation is £40. An alternative is to pay £100 for integration in one day, which is generally finished by 3.00 pm from Monday to Friday.
The second option required applicants to pay a regular incorporation cost of £20 or an additional charge of £100 for “same day incorporation” under the following conditions: if the applicant wishes to establish his firm as a Community Interest Company.
In this scenario, the entire cost of incorporation, including the CIC regulatory charge, will be £35 in this example. There is, however, no “same day” incorporation!
If the firm in question has its headquarters in Wales (“Welsh Company”) and the applicant files the formation paperwork in Welsh.
In such cases, applicants may explore web incorporation only for private limited firms. Adoption of models if articles is a given!
When the firm is a limited liability corporation
If an applicant desires to pay by check, he may only do so by dropping it off at Companies House.
For more information about how FBS Chartered Accountants can help your business, get in contact with us today call: 0204 526 5195 or drop us a line hello@finchleybusiness.co.uk
