Company formation

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In the UK the process of incorporation is called company formation, it is also sometimes referred to as company registration. Under UK and most international law a company or corporation is considered a separate entity to the people who own or operate the business.

Companies can be created by individuals, specialised agents, solicitors or accountants. However many solicitors and accountants often subcontracted out to specialised agents, even under the paper-based process.

Today the majority of UK companies are formed electronically. Most have packages below £100 and some have packages below the cost of paper filing which remains £20.

Contents

[edit] How to form a company

[edit] Paper process

If you incorporate a company yourself, you will need to send the following documents, together with the registration fee to the Registrar of Companies.

For detailed information see the Companies House guide.[1]

[edit] Memorandum of Association

Sets out the company name, the registered office address and the company objects. The object of a company may simply be to carry on business as a general commercial company. The company's memorandum delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

[edit] Articles of Association

The Articles of Association is the document which sets out the rules for the running of the company's internal affairs. The company's articles delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

[edit] Form 10

Form 10 gives details of the first directors, secretary and the intended address of the registered office. As well as their names and addresses, the company's directors must give their date of birth, occupation and details of other directorships they have held within the last five years. Each officer appointed and each subscriber (or their agent) must sign and date the form.

[edit] Form 12

Form 12 is a statutory declaration of compliance with all the legal requirements relating to the incorporation of a company. It must be signed by a solicitor who is forming the company, or by one of the people named as a director or company secretary on Form 10. It must be signed in the presence of a commissioner for oaths, a notary public, a justice of the peace or a solicitor. There is usually a £ 5 fee payable to the person that witnesses the statuary declaration.

[edit] Electronic process

The key difference with the paper process is that there is no Form 12 and requirement for a statuary declaration. This significantly speeds the process and Companies House's record for an Electronic Company formation is five minutes.

To access the electronic process you either need compatible software that works with the Companies House eFiling service[2] and an account with Companies House, or use a company formation agent. The company formation agent will have created a series of links into Companies House, to lookup the company name, and submit the company. Different agents have differences in their processes caused by their website and software implementation. Companies House have a list of company formation agents that have passed integration testing[3].

[edit] Types of company

There are many different types of company:

[edit] Notes

  1. ^ Companies House Guide to Company Formation
  2. ^ E-Filing compatible software providers
  3. ^ E-filing company formation agents

[edit] See also

[edit] External links