Why and how to register a company in the UK?

register a company in the UK

According to World Bank ratings of 2018, UK is the 7th best country in the world for starting a new business. The advantages that the country offers include low-setting up cost and high optimism among the country entrepreneurs. The country has deep faith in meritocracy as around 88% of Britons believe that working hard can help them achieve more in life.

How to register a company in the UK?

business-startupThanks to the low start-up cost of £ 81, establishing a business in the UK isn’t a big deal. It is particularly easy for people registering as self-employed or sole traders. For that, you can choose the name of the company, or you can even name it after yourself. Following are the steps that you should follow for registering your company in the UK.

1. To register as a sole trader

Registering as a sole trader means you would be the sole owner of the company under which you would be employing other people. For that, all you need is a National Insurance Number (NI) and a self-assessment form for HM Revenue and Customs (HMRC).

The registration process is very flexible. You can register online, or through phone or by simply mailing the CWF1 form to HM Revenue and Customs. The process is quite easy and streamlined. You just have to be ready with a proper business name.

2. To register as a limited company

If you are registering as a limited company, you need to appoint certain people (directors) to operate the firm. The same directors would also be counted as employees. After appointing the directors, you have to register the firm with Companies House.

For registering your firm as a limited company, you need to have at least one director and one shareholder. You need to fill out IN01 application form and submit a memorandum of association along with articles explaining how you would run the company to the Companies House.

Why to register a company in the UK?

Apart from the benefits already stated, opening a business in the UK has many other advantages as well. Here are some of them:

1. It is easy to do business

It is easy to do businessAccording to the 2018 report by World Bank, UK is one of the best countries when it is about ease of doing business. From IT to manufacturing, the country offers an enormous range of business opportunities. Moreover, when compared to other developed countries of the world, the business restrictions in United Kingdom are also few and far between.

2. Tax system isn’t complicated

UK is somewhat safe from a complicated tax system. At present, the corporate tax is simply 20%. In addition, since the UK has signed treaties with many other countries, most of the corporates aren’t obliged to pay extra Corporation tax on their foreign dividends. You just have to some background research before dealing with a country, and you might end up saving a decent amount of tax money.

3. Abundant workforce

Abundant workforce

For most of the other countries in Europe, the lack of workforce has become a significant issue. However, UK is not suffering from that problem. UK has a workforce of around 30 million people, which is second highest in the European Union.

Despite all these factors, complications may arise sometimes making it difficult to open a business in the UK. While facing such situation, you might feel helpless. However, you need not to. At least in the UK, there are many online firms like https://www.chuilaiandcocpa.com/ that offer complete assistance towards establishing a business. All you need to do is choose a suitable package for yourself, and you are done.

Article Submitted By Community Writer

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