Business Registration process in the United Kingdom

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Step

Process

1

Check the business name in the online database to ensure uniqueness

Website to check the name’s uniqueness:

http://wck2.companieshouse.gov.uk/b2366611298171d46dc7fbf07eee4e08/wcframe?name=accessCompanyInfo

Time to complete: less than 1 day, (online registration)

Free

2

Prepare agreements records and charter; Fill out and sign the Application Form IN01 (business registrationapplication form)

Forms are provided free of charge on the business registration agency’s website (the Companies House) at: www.companieshouse.gov.uk In case the company is limited by the number of shares to approve all contents of the sample charter, a copy is not required when the registering business. All members must sign the registration Form IN01.

In addition, agreement records and charter are used to register business, the company must submit papers containing information in Form IN01 and send to the business registration Agency (for example, in the UK and Wales (or Wales), Scotland or Northern Ireland), including:

(i) Report in accordance with regulation in Company Law 2006;

(ii) Business registration application form of company include:

- Expected name (see Section 3.6 for details about selecting a company name);

- Area of the business registration agencies (for example: the UK and Wales (or Wales), Scotland or Northern Ireland);

- Legal obligation of members about limitedly responsible for the capital contribution or commitment of these members;

- Clearly identify the type of public company or private company;

(iii) If the business registration form is sent by agents on behalf of members, the name and address of the agents are defined in the Company Law 1985. In addition, if the business registration application form is sent by a agent of the members, they must certify compliance with the provisions of the Company Law 2006 related to business registration;

(iv) In case companies with share capital, records must include statement of declaration of capital, the founding shareholders, including the names and addresses of shareholders. The person who established trading place known as director. This is provided for in Section 242 Corporation Act 2006;

(v) Notification of nominations of expected positions, including the first director and the company secretary (if it is a private company, it does not need a secretary);

(vi) Notification of the expected address of registered office of the company;

(vii) A copy of the expected charter (if all of articles in sample charter are not approved).

Business registration documents are processed online or manually for hard copy. Concurrently, enterprises can choose the same-day processing service.

Processing time: 1 day

Fee: 35 pounds

3

Complete registration documents with officer at business registration agency

There are many rates for business registration application processing fee. If processed by software, the standard business registration fee is 14 pounds; processing fee for paper-based application is 40 pounds. For same-day processing option, the fee for software processing is 30 pounds; paper-based application processing fee is 100 pounds.

The process of business registration can be done online or directly at the business registration office. (Many computers in the branch of business registration Agency have business registration software installed). The cost for entering the registration data on the site is 15 pounds.

Listing of fees are posted at http://www.companieshouse.gov.uk/toolsToHelp/ourPrices.shtml

Processing time: 1 day

Fee: 30 pounds

4

Contact Her Majesty's Revenue and Customs (HMRC) and register for value added tax (VAT)

The company must contact the HM Revenue and Customs (HMRC) and register for business tax (tax amount shall be determined based on company profits). The registration process of value added tax (VAT) can be done online at: https://online.hmrc.gov.uk/registration

Time to complete: less than 1 day (online registration)

Fee: Free

5

Contact the HM Revenue and Customs (HMRC) and register for PAYE tax (shall be done simultaneously with the previous procedures)

The company must contact the local Tax Department to establish the plan for national insurance contributions and taxes payment based on the actual amount of money earned (PAYE), this tax deducts the income tax from the salary/wages of workers. The company will be issued a PIN code within 1 week and must activate that PIN code within 28 days.

The local Tax Department is combined with the HM Revenue and Customs (HMRC). The company needs to register online for taxation with the activation code. For security reasons, data provided with the activation code and actual business activities are inspected within 7 days. Only a few percentage of tax registration process is denied due to the longer period of security inspection.

The activation process is done online instantly, even though the code is valid within only 28 days.

Completion time: 8 days (shall be performed simultaneously with the previous procedure)

Fee: Free

6

Registration of legal obligation insurance of business owner

Obligation Law of business owner (Compulsory Insurance) in 1969 requires all employers in the United Kingdom to maintain legal obligation insurance of the employer with an acceptable level of coverage for the company. The minimum amount of compensation for legal obligation insurance for the employer is limited at £5 million.

Obligation Law of business owner (Compulsory Insurance) in 1969 requires documents of insurance payment must be posted at workplaces. From 01 October 2008, the information of insurance payment of the company can be posted online to ensure that employees have access to the information.

Time to complete: 1 day

Fee: Free