Most small businesses are established as limited companies. This happens for a number of reasons, the most prominent of which is that creating a limited partnership allows a person to draw a clear line between his personal property and that which belongs to the company. In this way, in the event of a future liability, only the finances of the company will be affected, leaving the individual and his assets intact.
In a limited company, although the directors may be required to guarantee loans made to the company, the company’s shareholders are not responsible for debts incurred by the company. This gives shareholders and directors a lot of financial immunity; something that is not possible if they were registered as sole traders. Therefore, a limited partnership is the basic foundation on which a business is built.
In the UK, forming a limited company is relatively easy. The company must be registered in the Mercantile Registry. You can also get all the important facts about all British companies. Before registering, it is important to decide which type of registration is best for you. Most companies opt for the standard limited partnership registration. But you can also register as a nonprofit, charitable, or limited partnership business. Then you need to decide on the business name and check if the name you selected is available for use. To do this, you’ll need to run a name check that checks a database of each company registered with the House of Companies.
The next step is to complete and submit a set of documents before you can complete the onboarding process. The House of Companies has all the information about the forms and their numbers. You must submit a Memorandum of Association and the Articles of Association. You must also submit various forms such as Form 10 and Form 12. These will contain important information related to shareholder rights, the physical address of your company, the powers of Directors and the name and address of the Company Secretary, etc
Although you are not required by law to use an agent and you could very well go through the entire process yourself, most of the time, these important documents are prepared by the company’s accountant or training agents. However, one of the easiest ways to register and form your limited partnership is through the faster online process. Now it is possible for you to form your company, nominate your directors and issue shares online. This is a simple and fair process. Most web services have a wealth of experience in this field and have an intuitive system that guides you through all the requirements. These services will send you regular email updates on the status of your business. Even after your company is formed, online services also allow you to modify company details, such as changing your registered office and share capital.
