The UK economy is one of the most prosperous and fast-growing in Europe, so many people choose to start businesses there. If you're planning to do the same but aren't sure what documents are required to establish your business, this article is for you!
Company Formation Documents
When you are ready to form your company in the United Kingdom, you must gather a few key documents. These include your company’s articles of association, memorandum of association, and certificate of incorporation. You will also need to have your company’s registered office address, share capital amount, and director’s details on hand. Finally, you will need to obtain a unique company number from companies house.
Requirements for Company Ownership and Directorships
In order to establish a company in the United Kingdom, individuals must meet certain requirements for company ownership and director positions. The first requirement is that individuals must be at least 16 years of age. Secondly, would-be company owners and directors must be British citizens or have indefinite leave to remain in the United Kingdom. Lastly, they must not be disqualified from serving as a director under the Companies Act 2006. Directorships are also subject to a fit, and proper test carried out by the Financial Conduct Authority (FCA).
Registering the Name of a Limited Company
The first step in setting up any company is registering the name with companies house. The government organisation is responsible for incorporating and dissolving limited companies in the UK. The process is relatively simple and can be done online.
There are a few things to keep in mind when choosing a name for your company. The name must be distinctive and not already in use by another company. It cannot be offensive, misleading, or similar to an existing trademark.
Once you have chosen a name, you will need to register it with Companies House. This can be done online, and you will need to pay a small fee. Once the name is registered, you will need to provide certain documents to establish the company. These include:
- Memorandum and Articles of Association: This document sets out the rules governing the running of the company, including shareholders’ rights and duties, directors’ powers, and how decisions are made
- Statutory Declaration of Compliance: This declares that the company has been set up correctly in accordance with the Companies Act 2006
- Declaration of Solvency: This states that the directors believe that the company will be able to pay its debts as they decide to dissolve the company.
Accounting Records Required To Create Sustainability Reports
The United Kingdom has specific laws and regulations when it comes to recording accounting data and establishing financial statements. Accurate and up-to-date records must be kept to create sustainability reports for any new company. In this blog, we will discuss the different types of accounting records required by the UK government in order to create such reports.
Three main types of accounting records are required:
- Financial statements,
- Balance sheets, and
- Ledgers.
Financial statements show a company’s overall financial performance for a certain period of time. Balance sheets provide a snapshot of a company’s assets, liabilities, and equity at a given point in time. Lastly, ledgers contain all the complex transactions that have taken place within a company.
To create sustainability reports, new companies must ensure that they keep accurate records of their financial data. Doing so will ensure compliance with UK law and help the company create a strong foundation for future success.
Completing Annual Returns Due From Companies Without A Financial Year End
If you are a company registered in the United Kingdom, you must complete an annual return. Companies House, the UK’s registrar of companies, will send you a notice to file an annual return at least 21 days before the due date. If your company does not have a fiscal year-end, you must use the calendar year as your financial year. In this case, your annual return will be due on the anniversary of your incorporation.
You can file your annual return online, by post, or through a professional agent authorised to file on your behalf. Annual returns are not filed with companies’ houses automatically; you must take action to file yours before the due date.
Failure to file an annual return is a criminal offence. If you do not file on time, you will be liable for a late filing penalty of £500. After 6 months, you will be responsible for an additional £1,500 penalty. After one year, you will be liable for a final £3,000 penalty. In addition to these penalties.
Conclusion
If you’re thinking of starting a company in the United Kingdom, there are a few key documents you’ll need to have in order to get started. These include a business plan, articles of association, and a memorandum and objects clause. With these key documents in hand, you’ll be well on your way to getting your business off the ground.
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