Complete Guide to UK Company Registration from Pakistan

Key Takeaways

• Selecting the right company structure is pivotal for setting up a business in the UK. The company structure affects legal liability and organisational operations. Most opt for limited companies for their security, flexibility, and tax benefits.
• A company name should be chosen carefully for its uniqueness, avoidance of trademark infringement, and appeal to target audiences.
• Make sure you have a UK service address, as that information will be used for government correspondence and is disclosed via the public register.
• Once business owners decide to register a UK company, they must prepare a Memorandum and Articles of Association, set up a business bank account, and find a registered office address.
• Post registration, you must comply with government regulations. Ensure prompt filing of financial documents, including the confirmation statement and VAT registration.

1 Choose a Company Structure

The UK government offers several entity structures for foreign entrepreneurs. Understanding their differences, benefits, and restrictions will help you make the best choice for your business venture.

Most foreign entrepreneurs opt for a limited company, whereas some choose the hybrid limited general partnership model. Let's examine each structure's pros and cons to help you make an informed decision.

Private Limited Company (LTD)

LTD is the most common form of UK company incorporation. UK LTD companies function as an independent legal entity. They protect business owners from risks by safeguarding personal assets from company debts, business failures, and bankruptcies.

The Ltd structure mandates the documentation of all shareholders and the number of shares they hold. Therefore, this structure is an excellent fit for anyone seeking protection and control over their assets and businesses.

Public Limited Company (PLC)

Unlike LTDs, PLCs can offer their shares to the public and can be listed on stock exchanges. This structure requires at least two company directors, at least one shareholder, and a company secretary. A PLC also requires a minimum issued share capital of £50,000.

If you aim high and visualize your business idea on the stock exchange, a public limited company is your ticket to the big leagues.

Limited Liability Partnership (LLP)

The last on our list is a Limited Liability Partnership (LLP). This hybrid structure combines the flexibility and tax benefits of a partnership with the security of an LTD. The legal requirement for forming an LLP is to have at least two members. However, you can form one independently by setting up a dormant company and using it as the second member.

2 Register a Company Name

Avoid trademark issues

Once you’ve checked for name availability, it’s time to navigate the tricky waters of trademark infringement. Just as you wouldn’t want someone else using your unique brand name, you must ensure you’re not infringing on another brand’s trademark.

Relevance and appeal

Your company name's appeal level is as important as its legality. A catchy, memorable, and relevant name is more likely to resonate with your target audience and help your business stand out. Therefore, spend time brainstorming, collecting feedback, and selecting a name that genuinely represents your business.

3 Register Your Company in the UK

With the company structure decided and a unique name in hand, it’s time to take the next big leap - company formation by registering your company with Companies House.

The company registration process begins by preparing the necessary documents. You must then pay the registration fees and submit your application online or by post using the Companies House Service.

Online applications are usually processed with same-day registration, although postal applications can take 8 to 10 days, depending on the Companies House workload. If the company formation process sounds too complicated to you, check out Osome's company formation packages. They are tailored to your needs and will free you from dealing with the process step by step yourself.

Preparing necessary documents

Before registering your company, you must prepare two key documents: the Memorandum of Association and the Articles of Association. These documents are similar to your company’s ID card and rulebook, respectively. Both are crucial to legally forming your company and establishing internal rules.

If you need help preparing company formation documents, a company formation agent can assist you. A company formation agent can be a natural person or a business entity. They are trained to put together company formation packages and can answer any additional questions regarding the process.

Paying registration fees

Next up is paying the registration fees. Like applying for a passport or a driving license, registering your company comes with certain fees that must be paid as part of the application process. Make sure your payment is prepared when it’s time to submit your application.

Applying online or by post

You’re almost at the finish line! The final step in this registration process is submitting your application. Depending on your preference, you can register your company online or by post. However, filing for a limited company online is usually faster than via physical mail.

Once your application is approved, you’ll be all set with a legally registered UK limited company, making you a proud owner of a company in the UK! If you need help, check out Osome's UK company formation services. Our professionals will ensure the process is smooth and hassle-free, so you can rest assured.

4 Complete Core Company Documents

The Memorandum of Association is a legal statement signed by all initial shareholders or guarantors, and the Articles of Association lay out the company’s internal rules. These documents are crucial to formalising your company’s management structure and internal rules.

To form a new LTD, you need at least one director. However, a company secretary is not mandatory. The company secretary for your limited company can also be the same person as your director. However, they cannot be the same as your company auditor.

5 Set Up Business Bank Accounts

Kickstart your entrepreneurial journey. Open a bank account now.

As part of getting your business off the ground in the right way, we connect you with one of our partners to open a bank account best suited for your business in the UK

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6 Register Office, Service Address, and Trading Address

As a new company in the UK, you’ll need to establish an official presence. This is where your registered office and service addresses come into play. Not only are these addresses a legal requirement, but they also add a layer of professionalism and credibility to your business. To ensure compliance, provide accurate company details when registering your business.

Let’s discuss each of these address types.

Registered office address

Your registered office address is the official address where all your company’s legal documents will be sent. It must be a physical location in the same country as your registration. This must be a UK address in the same UK country/jurisdiction that your business belongs to.

Also, you may not want to use your home address as the registered office to maintain privacy and a professional image.

Service address

Your service address is your company's correspondence address for directors, secretaries, and PSCs to receive government correspondence. It’s especially useful for directors who wish to maintain their privacy and not disclose their personal addresses publicly.

Business Trading Address

This is the address where your primary business services are conducted. Unlike your registered address, the trading address doesn’t have any legal responsibilities: it’s just what you choose to display to your business contacts for non-statutory communications or use on your marketing material.

Benefits of using professional address services

Finally, consider using professional address services to enhance your business’s professional image. These services provide a commercial office address, ensuring you receive all important documents efficiently and manage them effectively.

Expert company formation from £50

We guide you through incorporation, advise you on a better setup and assist with licences if needed. We also offer our support beyond company registration as part of our subscription services.

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7 Сomply with Government Regulations

Post Application

Once your new business is legally registered, you will receive an SIC code, which is the five-digit classification government agencies use to categorize and identify your services.

Any existing company is listed on the UK public register, a database providing company information to the general public. This includes directors' details such as name, nationality, occupation, and a UK address for correspondence. Directors must also provide their residential address, which is kept separately in a private registry.

Summary

We’ve journeyed through the ins and outs of company formation in the UK from Pakistan, from choosing your company structure to complying with government regulations. But remember, this is just the beginning of your entrepreneurial journey.

Gabi Bellairs-LombardBusiness Writer

Gabi is a content writer who is passionate about creating content that inspires. Her work history lies in writing compelling website copy, now specialising in product marketing copy. Gabi's priority when writing content is ensuring that the words make an impact on the readers. For Osome, she is the voice of our products and features. You'll find her making complex business finance and accounting topics easy to understand for entrepreneurs and small business owners.

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