A Basic Guide to Company Formation

Over the years, there has been a steady increase in people getting interested in starting their own company, especially in the UK. This is because the UK is known for being one of the most politically stable countries, making it favorable for small start up companies. With the pound being relatively stable for a long time now, the UK has attracted all kinds of businessmen from small companies to big business tycoons mainly because it is a very easy, stable and profitable business place.

When a company is created, a tremendous amount of planning and complicated processes go into its formation for it to be able to have a stable business foundation. This entire process that involves its incorporation is called Company Formation or Company Registration.

In the UK, a company can be formed by a person, a group, specialized agents, solicitors or accountants. Most of the companies in the UK create their own companies electronically. Even so, there is still a lot of paperwork involved in forming a company.

In the UK, whether you are going to form your company using a paper process or electronically, forming your own company is very simple but it needs a lot of paperwork. Each applicant is required to collate some documents and register their company to the Registrar of Companies for a fee.

Most websites offer packages that can help anyone form their own company. If you wish, you may even form your own company for as low as £100. This includes the cost of paperwork.

These documents include: a memorandum of association, articles of association, Form 10 and Form 12.

1. Memorandum of Association – this contains details such as the company name, registered office address, and the company objectives. When delivered to the Registrar of Companies, it must be signed by each subscriber in front of a witness who must attest the signature.
2. Articles of Association – this document states out the rules of the company. This must also be signed by each subscriber in front of a witness who must attest the signature.
3. FORM 10 – this document gives the details of the company’s first directors, secretary and the intended address of the office. Aside from the information above, each director must give details such as their birth date, occupation and details of previous directorships they have had during the last five years. Each officer listed in the document and each subscriber must sign and date the form.
4. FORM 12 – this document is a statutory declaration of compliance with all the requirements that are related to the company formation. It should be signed by a solicitor who is forming the company or by any director or secretary listed in form 10. This document must be signed in the presence of a commissioner for oaths, a notary public, a justice for the peace of a solicitor.
If your company decides to incorporate using the electric process, then you can do away with the FORM 12. This speeds up the process significantly which is why most companies, prefer this method.
As you can see, company formation is a complicated process. That is why most people leave it to the experts.