Aside from a tax-efficient business model, you can get an app for cash flow management as a bonus! Here is how to get started in 2021.
To speed up the launch, take advantage of digital services. For example, you could register your company quickly via https://gosolo.net/ and open a business bank account with a debit card and app to go with it. Both future entrepreneurs and active businesses use such services to minimize paperwork.
Step 1. Choosing a Structure
A popular choice for entrepreneurs is a limited private company with a sole owner/director. The ‘sole trader’ model makes you personally liable, so your own assets will be exposed if the business gets into debt. If you have more than one director or intend to sell shares to the public, choose a public limited company.
Step 2. Registering a Name
Check that your name has not been used yet. It is an essential element of your brand identity, so put a lot of thought into it. Here are a few tips.
- The names of competitors can provide inspiration.
- The name must reflect what your business does.
- It must be short and punchy to be memorable.
- It must be easy to spell.
3. Select a Formation Package
Your agent may offer different plans. Both registration and account opening can be digital. If you are using the services of an electronic money agent, make sure it is licensed by the FCA (Financial Conduct Authority) in the UK. Some companies provide free registration and transactions for specific groups of users.
4. Prepare Your Company Information
It will be submitted to Companies House (the institution that incorporates and dissolves limited companies in the UK). The agent will do it on your behalf. You will need the following.
- A registered office – the physical address in the UK where the institution and HMRC will send mail. This could be your home address or an address registered through the agent.
- Company director(s) – the name, date of birth and residential address of each of the directors.
- Shareholder(s) – the name, date of birth and residential address of at least one shareholder per company (the director may be the sole shareholder).
5. Allocate Company Shares
Unless the director is the only shareholder, you will have to allocate shares. The easiest way is to give one to each of the shareholders and make it worth £1.
6. Complete the Memorandum and Articles of Association
Prepare the documents formalizing how the enterprise will be managed. They have to be signed by the director(s), shareholder(s), and secretary.
7. Submit All Documents to Companies House
If you submit your registration by 3 p.m., your company will be registered on the same day. The agent will do everything on your behalf. This is a great time-saver!