According to the statistics published by the Department for Business, Innovation and Skills, more than 300,000 new companies are incorporated each year in the UK. While the country has business-friendly laws to encourage entrepreneurship, basic understanding of company set up processes is crucial to a smooth sail through.
Company Set Up for a Limited Company
The company set up process for a limited company involves identifying the type of company, deciding its officers and following the standard registration process. There are two types of limited companies – private and public. According to UK law, a public limited company or PLC should have a share capital of £50,000. Unlike, a private limited company, PLCs can raise money by selling shares in the stock market. A private limited company can convert into a PLC at a later stage, which will require a re-registration.
For setting up a limited company, it is essential to identify company officers. They are the people responsible for operations under the name of the company.
Company Set Up for Partnership
Company set up must define the type of partnership. Generally, there are three types of business partnerships:
* General partners: Here, all the business partners invest in operations and subsequently share profits. In case the business runs into trouble, each partner will be responsible for the incurred losses.
* Limited partners: Such partners invest in setting up a business, but are not a part of the routine operations of the company. The share of profit and loss remains in proportion to their initial investment.
* Sleeping partners: These partners invest in the business and share profits but do not take part in company operations. Unlike limited partners, 開公司費用 they are equally responsible for company losses.
After deciding on the type of partnership, the company has to be registered with the Companies House, as well as with HM Revenue & Customs (HMRC).
Company Set up for Self-Employed Individuals