How to set up a business in the UK?

Many French entrepreneurs are thinking of setting-up a company in the UK but too often associate this with something expensive and complex.

This idea is mainly based on the fact that in lot of countries the process of setting up a business is long and complicated.

But is it also difficult to set up a business in the UK?

Absolutely not, on the contrary!

Opening a business in the UK is much simpler than in the other countries because the procedures are simplified and faster.

Then, what are the steps to follow in setting up a company? How long will it take and what are the advantages?

1. The advantages :

To create a company in the United Kingdom has many advantages in particular on the tax point of view:

• You don’t have to declare yourself for VAT as long as your turnover is less than £85,000. Once you have exceeded this threshold, the declaration becomes compulsory.
• You will not pay tax for 21 months after you start your business.
• You don’t have to register as self-employed.
• All actions and changes related to setting up a business are digitalised.

2. The type of business :

The choice of the type of business will depend on your project:

• Sole Trader: this is the simplest form that requires the least formalities: declaration of the start of activity at HMRC and tax returns at each year end.
• Limited Liability Partnership: 2 or more people join together with the aim of working together. Each will have to pay taxes in proportion to the percentage of profits they receive. A company can be a member of the partnership.
• Limited Company: a director, a shareholder and a minimum capital of £1 are required to set up the company. The liability of the shareholders is limited to their contribution. Profits can be redistributed in the form of dividends.

3. Procedures :

• Choose the type of company

Depending on your project, you will have to choose which type of business would be most suitable.

• Choose the name of the company

You will need to choose a name that meets the standards so that it can be validated by the registry.

• Gathering the necessary documents for the creation of a business
• • The name of the company.
  • A physical address in the United Kingdom.
  • Details of the distribution of capital within the company
  • The personal information of the director of the company and, if necessary, of the company secretary.
  • The personal information of the shareholder(s) of the company.

• Prepare the Memorandum and Articles of Association.

These are the documents that enable the company to be formally incorporated.

The Memorandum is a document including a series of standard articles by which the shareholders confirm their willingness to create the company.

The Articles of Association represent the set of rules and regulations of the company, defining how the company will be run in the interest of the shareholders.

• Your company’s registration number

A registration number will be provided to you once the company has been created.

• Establishing the company’s records

UK legislation requires companies to establish and maintain the following registers:

• • Establish company registers
  • Register of Directors
  • Director’s address register
  • Secretary’s register (if you have one)
  • Register of members
  • Share register

Euro Accounting Ltd
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