Company Formation in the UK

The UK is a particularly attractive country for entrepreneurs due to many factors, including the country's economic dynamism and political stability. In addition, the UK has a solid and modern legal system that facilitates the creation of a company. If you are considering establishing a business in the UK, it is important to know the steps to follow. In this article, you will systematically explore the process of company formation in uk for non residents. 

How to create a company in the UK: Which form to choose to open a company in the UK?

There are several options available when it comes to choosing the legal form of your company in the UK. In recent years, many companies have settled in the UK because the English model of the Limited Liability Partnership (LLP) is advantageous, particularly because of its flexibility and its advantageous taxation. However, other interesting legal forms could better correspond to your activity and your objectives. Here is an overview of the previews:

Limited Liability Company (Ltd)- A Limited Liability Company (Limited) is a private business enterprise with a limited number of owners. Equity securities are generally not negotiable and may not be listed. Liability companies are generally less complex than limited liability companies, making them a popular choice for small businesses. The owners of a limited company are personally liable for the company's debts up to the amount of their investment in the company's shares.

The management of a limited company is generally overlooked by a board of directors elected by the shareholders. The board is responsible for making important decisions on behalf of the company.

Public Limited Company (PLC)- A limited liability company (plc) is a legal business form often used for listed companies. Plc is a listed company with issued shares. Investors buy shares in a company to participate in the company's profits and growth. Plc's shareholders have limited rights over the company's decisions, but they benefit from increased protection in the event of liquidation. In addition, limited liability companies (plc) generally have a higher share capital than other companies, allowing them to attract investors.

Sole Proprietorship (LLP) - A sole proprietorship (LLP) is a business entity offering limited liability protection to its owner. Sole traders and small businesses use this type of business. An LLP is similar to a corporation because it provides its owners with limited liability protection. However, there are essential differences between the two business units. For example, an LLP must not have a board of directors or shareholders. Additionally, an LLP is optional to hold annual meetings or submit yearly reports to the state.

General Partnership (SNC)- A general partnership (SNC) is a common business structure in European countries. It is similar if they are not directly involved in running the business. A general partnership is usually a small family business or a business of friends. The SNC is suitable for companies with a high degree of personal responsibility, such as professional service firms. The flexibility of the SNC structure also makes it attractive to companies looking to minimize their bureaucracy.

Process for registering your company in the UK

The next step is registering with the business registrar, which means your business officially exists.  

Obtain the necessary licenses and permits

After setting up your business, you may need to obtain certain licenses and permits in order to operate legally. This can include business licenses, building permits, and other types of permits.

Register your employees in the national register of employees

If you have employees, you must register them in the National Personnel Register before you start working together. This means that you must provide information such as names, dates of birth, and social security numbers.

Get insurance

The final step to building your business includes liability, auto, and home insurance. If you have employees, you will also need to ensure a good health and disability insurance policy. These steps are the main steps you need to follow to set up a company in the UK. For hassle-free company formation in the UK, it is the best idea to rely on corporate law firms in UK.

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