So you’ve decided to start a business. Maybe you’ve concluded that
setting up a company is the best route for you to follow. There are a
number of different methods of company registration, and a number of
people favour the direct path that is registering through Companies
House. After all, any incorporation application must go through
Companies House at some point, and this is a relatively inexpensive
method. However, in the long-run this might not necessarily be giving
your business the best start possible.
The Companies House website
has a number of pages that provide basic guidance about the
incorporation process. However, you are limited in the level of advice
you will receive. Beyond the initial formation, Companies House is
unable to give you advice on important considerations for you and your
newly set-up company. Conversely, many online formations agents offer
free consultations with accountants and tax advisors as part of their
service, to answer any questions you have as you start-up, for example,
whether you need to become VAT registered.
An important part of incorporating a company is deciding on the
Articles of Association – effectively, the rules that govern the running
of the company. Formation through other channels, such as an agent or
your accountant, may allow you to alter the company’s Articles of
Association to suit your needs. Unfortunately, this cannot be done as
part of the Companies House registration procedure, because model
articles are forced on all new formations.
Additionally, the service that is offered is a basic incorporation.
Although this will provide you with the minimum requirements when
starting a company, you cannot purchase any of the extras offered
through other channels. A Registered Office address, for example, is
particularly important if you are forming a UK company from abroad or if
you wish to protect your privacy when trading from your home. Although
this is unattainable from incorporation through Companies House, many
agents will provide this.
The major benefit that most start-ups see with registering at
Companies House is the comfort that they are filing the application
directly. Companies House is a UK government department, and therefore, a
trustworthy source to hold all of your important data. On the other
hand, it is not required to make stringent anti-money-laundering checks,
as an agent would. Although some may see this as necessary to speed up
the process for the individual, it does increase the possibility of your
details being used to fraudulently set up a company.
Whichever method you use to register a company, it’s important that
it is the right type of business for you. Although the process has been
made easier with online applications, it is vital that start-ups know
the obligations that come with a limited company.
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