How To Register A Company For Free

How To Register A Company For Free

Starting a company is a dream for many people, but registering a company can be a daunting task. It is thought of as expensive and complicated process, but it doesn't have to be. In this article, we will guide you on how to register a company for FREE.

📝 Index
  1. What is a company?
  2. Steps to register a company for free
    1. 1. Choose a company name
    2. 2. Register with Companies House
    3. 3. Create a memorandum of association
    4. 4. Create articles of association
    5. 5. Register for corporation tax
    6. 6. Register for VAT
  3. The benefits of registering a company
  4. Conclusion

What is a company?

A company is a legal entity that is separate and distinct from its owners. It can be either a privately or publicly owned company, and its owners are known as shareholders.

Steps to register a company for free

1. Choose a company name

The first step is to choose a unique name for your company. The name should accurately reflect what the company does and should not be too similar to the name of an existing company. You can use the Companies House website to check the availability of the name.

2. Register with Companies House

Once you have a name, you need to register your company with Companies House. This can be done for free using the online service provided by the UK government. You will need to provide details such as the company name, address and directors' details.

3. Create a memorandum of association

A memorandum of association is a legal document that sets out the company's name and the purpose for which it is created. It is a statement of the company's intent to carry out business activities. You can find templates for a memorandum of association online.

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4. Create articles of association

Articles of association are the rules by which the company will run. They set out the rights and obligations of the shareholders and directors, and include details of how the company will be run. Again, templates for articles of association are readily available online.

5. Register for corporation tax

If your company is going to be making a profit, you will need to register for corporation tax with HM Revenue & Customs. This can be done online, and you will need to provide details about the company's income and expenses.

6. Register for VAT

If your company's turnover is over £85,000, you will need to register for Value Added Tax (VAT). This can be done online, and you will need to provide details about your turnover and expenses.

The benefits of registering a company

Registering a company has several benefits, including:

  • Limited liability – the company is a separate legal entity, so the shareholders' personal assets are protected.
  • Tax benefits – companies pay corporation tax on their profits, which can be lower than the income tax rate for individuals.
  • Professional image – having a company gives a more professional image to customers, suppliers and investors.

Conclusion

Registering a company for free may take some time and effort, but it is not an impossible task. It is essential to do your research and follow the steps outlined above. Remember, once registered, you will be the proud owner of a company with numerous benefits.

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