Starting up your own first business is an exciting prospect. However, it is an on-going commitment for you and your partners. You must be prepared for a lot of preparatory work before you reach the stage of achieving new company formation. However, all this effort will be worth it when you finally have the paperwork in your hands to verify your company has been registered, allowing you to legally start trading.
Let us have a look at what needs to be done.
You may believe you have a unique business idea, have a skill or trade which you think you can profit from or wish to sell/produce creations or artefacts from your own designs. The list of possible business ideas is endless. However, be realistic and don’t overstretch yourself at the beginning. Consider how you intend to grow your business in the future, but unless you have unlimited finances, it is sensible to start with what you know.
It is absolutely essential to carry out extensive market research in your target location and demographic. For instance, it is going to be an uphill struggle to be successful if your business is hair styling – and your local area has many hairdressing shops and mobile hairdressers that you will have to compete against. Think about how you can tailor your business to employ unique selling points, to allow your company to stand out from the rest.
New businesses will need a convincing, upbeat but realistic business plan. Other things which must be taken into consideration are finances, business premises and staff (if applicable). An eye-catching and comprehensive website is also a business essential these days.
Which new company formation agent to use?
This is a decision which you must take seriously. There are many company formation agents to be found online. However, some offer a more comprehensive range of services than others. One of the main factors to look for is how long they have been trading. Obviously, if a company has been in the same business for years, they must be doing things right. Things to look for are:
- a clear and informative website offering a wide range of pre- and post-formation products and services
- FAQ page and customer reviews
- competitive prices
- the ability to speak to someone at the company who will be happy to advise and answer any questions you have.
Achieving new company formation
When using the best company formation agents, you will find that the actual process is quick and relatively simple. You will need to complete a number of mandatory online forms with the required information about your business and its directors and shareholders. Therefore, before starting out, ensure all the information is to hand. Ensure you have chosen a unique company name – your agent will be able to check this out for you and provide guidance as to which names and/or words are permissible. You must also ensure you have a registered office address in the same UK country where it is being registered. This is essential as this will be where you receive all correspondence from statutory agencies such as Her Majesty’s Revenue and Customs, Inland Revenue etc.
On completion and review of the forms, your agent will submit them to Companies House for authorisation and registration. Usually, this only takes a matter of a few hours. You will then receive confirmation via email that new company formation has been approved. You will also receive your Certificate of Incorporation, Memorandum and Articles of Association and Share Certificates for all your shareholders.
Congratulations, your business is now an official legal entity and you can start to trade. All being well, a successful future beckons.
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