If you are launching a radio business in the UK, it is advisable to register it as a company.
Great Britain offers maximum opportunities for running a successful business. The registration process is extremely simple and requires a minimum of effort, including the standard steps of company name check in the UK and finding a legal address.
In this article, you will learn in more detail about the benefits and process of starting a business in the UK.
English legal law prevails in the international system. It has been verified for centuries and significantly simplifies document flow. Businessmen do not require a large amount of paperwork, since any agreement can be officially concluded here and now. Other benefits of doing business in the UK include:
- It is permissible to register a legal entity online. The process takes no more than a day and is relatively cheap. In the same way, you can open a current account at any financial institution.
- Working with banking structures is simplified as much as possible. Each operation does not require piles of papers and confirmations.
- Loyal taxation system. Entrepreneurs can easily optimize their tax base.
- The investment segment in England is very well developed and a company from any field can easily find a suitable source of additional financing.
- Extensive government support is available to absolutely anyone. In the UK, it won’t be difficult to get a soft loan, a development grant, or an impressive cashback.
- International business is easy to manage. The geographical location of England allows businessmen to have time for meetings in Europe and the USA and at the same time control the work of the team, for example, in Asia.
- English companies are highly trusted throughout the world. The countries of the Asian region and the European Union willingly cooperate with them.
Before you start a business, you need to learn the legal forms. The list is quite extensive:
- Limited Company (LTD).
- Public limited company (PLC).
- Limited Liability Partnership (LLP).
- Scottish limited partnership (SLP).
- Community Interest Company (CIC).
- Charitable Incorporated Organization (CIO).
- Industrial and Provident Society.
- Financial Mutuals.
- Trust.
- Limited Partnership.
- Partnership.
- Unincorporated Association.
- Sole Trader.
The Most Popular Legal Forms of Companies
We looked at corporate and non-corporate legal forms. The former are full-fledged legal entities, the latter do not have this status but have their own advantages that attract businessmen. Let’s look at the most popular corporate forms.
- LTD.
Limited Company is the most common and popular form for starting your own business. A limited liability company is a full-fledged legal entity and is authorized to sign official documents (agreements, acts, and more). It belongs to its founders, but in the event of financial claims from creditors, the owners risk only the assets of the legal entity. Own funds remain inviolable.
There are 2 types of limitation of liability of LTD owners:
- Company Limited by Shares – the liability of participants is limited to shares, which is extremely convenient (for example, the vast majority of organizations are registered in this form);
- Company Limited by Guarantee – each owner signs an obligation to pay a certain amount in the event of unforeseen circumstances.
You can open a company in England in LTD format with one founder by submitting a memorandum and charter to government agencies.
- PLC.
PLCs are essentially a form of LTD. The company is also owned by the members. They are allowed to issue shares and list them on the stock exchange. In this case, the company must:
- Correctly register shareholders and directors;
- Hold meetings regularly and take minutes of them;
- Issue a share certificate.
- The financial liability of participants is limited to the size of their shareholding.
- LLP.
A limited liability partnership is a rather interesting format. Limited Liability Partnership is legally independent in relation to its members. The liability of the members is limited to the amount of their investment in the business, and profits are distributed equally or in accordance with other rules specified in the articles of association.
LLP may not pay income taxes – in this case, the participants themselves report to the state for the income received. A company may have physical assets.
- Sole Trader.
This is the easiest way to open a business in the UK. Control lies entirely with one person, but he is personally liable for Sole Trader’s debts. The requirements for such companies are minimal, but their chances of attracting outside investment are also insignificant.
Unincorporated associations are created by multiple stakeholders. They are required to draw up and sign an agreement on joint activities, where they note the purpose of their work and occupation. Investment for associations is also limited.
What Difficulties May Arise When Registering a Business?
Registering a company in the UK on your own if you have no knowledge can be difficult, as the procedure has a lot of pitfalls. Entrepreneurs may encounter the first difficulties when choosing an agency name. It is selected according to strict rules and checked for the presence of similar names in the registry.
The list of documents is simple at first glance:
- Founders’ passports
- Constituent documentation
- Evidence of a legal address
- Confirmation of payment of duties
- But in practice, businessmen regularly receive requests for additional papers. In addition, almost every company must prove the legality of the capital it has declared. To do this, you have to disclose all sources of financial income.
Authorities also often require:
- A business plan detailing the company’s activities for the coming years
- Potential turnover of the opening company
Final Thoughts
To open a company in the UK, you need knowledge in the legal field, economic segment, and other areas. When preparing to open a business, in particular for a firm name check in the UK, we recommend contacting specialists. You can also use the services of a virtual office, which offers a legal address, by contacting the Hoxton Mix. You can use one of several tariffs, which differ in the range of services and prices.