Companies

There are two ways of setting up a company. The first is to take over a Private Limited Company that is a dormant entity that has never done any business. These “off the shelf” companies can be located through a solicitor, a company registration agent or a chartered accountant. This is the most common way of forming a company in the UK.

The second way is to start from scratch. To do this you will need to retain the services of a solicitor. The process entails the following steps:

• First, you need to choose a corporate name that will be filed with the Registrar of Companies at Companies House (Department of Trade and Industry) following a name and trademark search;
   
• Your solicitor will then draft the Memorandum and Articles of Association. This document indicates the corporate name, registered office, business purpose, amount of authorised share capital and its division, and the limitations of liability. The Articles of Association set forth the regulations for internal company management and relations among the shareholders, such as voting rights and so on;
   
• Next, you will file the signed Memorandum and Articles of Association and Bylaws, together with other specific forms that provide the names and details of the founding board members and the company secretary, with the Registrar of Companies;
   
• The company becomes official once the Registrar delivers the Certificate of Incorporation.

Costs for these procedures usually come to around £1,200 (US$1,801.69) and include filing and registration fees, miscellaneous expenses, and solicitors’ fees.

For all information regarding the formation of companies in the UK, please visit the Companies House website at: