Understanding incorporation in the UK – is it right for you?
Expanding your business into the UK can be an exciting prospect, but one with many things to consider. The UK offers a number of different business structures under the law, each offering unique benefits. This post looks at starting a company in the UK – specifically the features of incorporation.
Set up a UK company
If you are looking to set up business in the UK, it is important to ensure your business is structured in a way that allows you to most effectively meet your business goals. Private limited companies are overwhelmingly popular in the UK as a result of the many benefits they offer owners. Private limited companies are among one of the simplest and quickest structures to set up, but there are specific legal requirements that must be adhered to. Incorporation of a UK company can take as little as a few days, and all you need to do is identify a head office, choose the directors and determine what kind of business you are (if you have not done so already). The simplicity of incorporation in the UK removes any delays in starting your business, saving you time and money.
Benefits of incorporation
When you set up a UK company, you will benefit from limited liability. This means that you will be protected, to an extent, from company costs and liabilities. Incorporating a company creates a new legal entity with what is known as ‘legal personality’ – this means the company itself is held accountable for its actions, can enter into contracts and can hire employees, among other things. Owners of the company are not party to these contracts and therefore not directly accountable. Those who set up a company in the UK normally take shares in that company and become shareholders. Shareholders may only be held liable for the debts of the company, up to the amount of their shareholding. This is in contrast to a partnership where the partners may be held liable for all the debts of the company – both jointly and severally.
Making the decision to incorporate in the UK is an important one, and there are many factors to consider. Whilst the process is relatively straightforward with Goodwilles support, there are certain legal issues that are essential to ensure your company is set up correctly and properly registered. If you require advice or assistance to set up a UK company, contact us today.