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March 31st 2014 / BY: Wisteria

Important Requirements for Company Formation in UK

The company formation process can be very simple, quick and easy by using a specialist company formation agent or accountant. The basic details required to register a company are the company’s name and address, the names of the directors and shareholders, shareholding details and share capital. There are a number of requirements that need to be considered while incorporating a company. The main requirements would be:

  • Is it necessary to register for VAT?
  • What should the registered office address of the company be if a non-UK resident is setting up the company?
  • Should the director of the company register as an employer?
  • Should the director appoint a company secretary?
  • What accounting services will the company require and benefit from?

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It is important to consider VAT registration as registering for VAT voluntarily can be beneficial for the company, for example by making the company appear more credible to larger businesses that it trades with or giving the company a more professional image. Once a company registers for VAT, it may be possible to claim a significant amount of VAT on equipment if it is just starting up. To know more about VAT: http://www.vat-registration-threshold.co.uk/

For the incorporation of a new company, it is important to have a registered office address. It is the legal address of a firm that is entered in the official register of the Registrar of Companies. All government and court communication is usually addressed to the registered office.

It is necessary to register as an employer for PAYE purposes so that payments can be made to the staff and directors. The ‘Pay As You Earn’ system is used to collect the appropriate income tax and National Insurance contributions (NICs) for companies with employees. It obliges employers to calculate and deduct the correct amount of tax, pay the amount due by the deadline and keep detailed records for each employee.

The director can decide to take up the responsibility of the company secretary or appoint an agent for the company secretarial service. The company secretary is mainly responsible for the administration of a company. Company secretarial services include ensuring that proper board procedures are followed and that the company is compliant with relevant legislation and codes of conduct. Most importantly, the company secretary is the main point of contact with the shareholders.

Accounting, administrative and tax services can help you to ensure that all the obligations and requirements are fulfilled. A tax accountant can help to ensure that the correct and lowest amount of tax possible if paid by providing efficient financial and tax advice. A business and chartered accountant would advise about the necessary accounting services that would benefit the company.

Wisteria Ltd offers a consultation with a Chartered Accountant or Chartered Tax Adviser or with one of our Business Advisors, before registering your company. This generally gives the director a better idea and requirements for company formations. After your company incorporation, you are also entitled to a free one hour tax, accountancy and business advice meeting at the Wisteria office in Edgware, London or over the telephone with either our Chartered Accountant or Chartered Tax Adviser.

Wisteria Chartered Accountants, Tax and Business Advisers provide a variety of services for companies and individuals.  For accounts or tax advice, information on our services or details on setting up a company if you are a UK or a non-UK resident, please contact us on 0208 952 0140 or email info@wisteria.co.uk.