Once the United Kingdom was a land, where common people were escaping from in search for a better life. Nowadays everything has been changed, as the UK attracts more and more proactive entrepreneurs from all around the world. London is a huge commercial center with many opportunities. It is an international city that gives everyone a chance to win.
Good thing that now to create own company you do not have to wait in long lines and submit piles of papers. There are four simple steps to register your Private Limited Company (for 10-50 employees) in London, the UK.
1. Register your company online
To register your Private Limited Company or Ltd you will need a few hours of your time, Internet access and GBP 15 for the fee. You can also do it traditionally, through the paper application, but it will cost you GBP 40-100.
You start with www.gov.uk website, where you can check for the unique name of your company, file for registration with Companies House and complete application form IN01. The latest includes the details of your company (whether it is a private or a public body, if the liability of the members is to be limited, a statement of shareholdings if needed, a statement of the proposed officers and intended registered office address).
2. Register for VAT if needed
This is another online procedure. You have to register for VAT in case your taxable goods exceed the £83,000 threshold or on the voluntary basis. You can do it for free at https://www.tax.service.gov.uk/ but first be sure to sign up for HMRC (Her Majesty’s Revenue and Customs) Online Services or the Government Gateway. It will take you less than one day.
3. Register for the national insurance and pay-as-you-earn (PAYE) tax
Unlike the previous registrations, signing up for the national insurance and PAYE, a scheme, which deducts tax from employees salaries, might take up to three-five days. You can do it simultaneously with the previous procedure. After contacting HMRC agency your company will be issued with an activation PIN, which you will use to enroll online within 28 days. An activation is instant, however, there is a security check on the provided data, so in some cases, it may take longer. The company will need to report PAYE in real time, and the most convenient way to do it is online as well.
4. Sign up for employer’s liability insurance
All the employers in the UK are required to have a liability insurance from an authorized insurance company. The minimum legal condition for employers’ liability insurance is a size of indemnity of GBP 5,000,000. In case the employer’s liability insurance is not taken out on time, a fine of GBP 2,500 per day is being imposed. The service of taking the liability is free of charge. It can be done within one business day.
The procedure of opening a new company in the United Kingdom is quite simple. Modern technology and online registration services make it faster and more convenient.
Starting and growing a business can be challenging. However there are many events such as Tony Robbins’ Business Mastery or UPW London that you can go to learn more about cutting-edge strategies and mindset to grow your business.