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Are you an entrepreneur wanting to expand your business by opening up to new markets in different countries? Or are you a businessperson looking to start a new business in multiple markets?
The good news is that starting a new company is relatively easy compared to the past. With just a few documents and a few clicks, you can create a new business in a different country, and build your business and career completely online with the help of wamo’s UK company formation service. You now have the opportunity to expand your business as an entrepreneur. In this article, all the necessary information is provided, and you’ll be able to manage it without any of the usual hassles.
5 Steps to Company Formation in the UK
If you are drawn to the benefits of the UK market and are looking for a brief overview of the procedure for forming a company in the UK, look no further. Creating a corporation in the UK may appear complicated at first, but really it can be pretty straightforward, especially if you use a service like ours to do the hard parts for you! Here is a step-by-step explanation of what to anticipate:
STEP 1:
The first stage is to do your research by studying the UK market. Next, investigate your competitors. bUltimately you’ll be able to utitlise the information you gather at this stage to make informed decisions about how to proceed. You may use this information to decide whether to launch your company in the UK.
When researching the UK market, it’s worthwhile answering the following questions first:
- Who in the UK do you want to reach?
- What kind of goods or services are you hoping to provide in the UK?
- How do you plan to stand out in this competitive market and outperform your rivals?
STEP 2:
After you have investigated and analysed the reach of your product/service in the UK market, you should choose an appropriate business model.
This is an essential choice since it will affect many areas of your company, including liability, taxation, and management.
In the UK, you can start a business in several ways, some of which include sole proprietorships (sole traders), limited liability companies, and partnerships. Choose the one that best satisfies your needs and specifications. It’s crucial to pick a structure that accommodates the demands and objectives of your company.
You can find more information about company types in the next section.
STEP 3:
After you decide on your business model, write a business strategy, select a company name for your business, and obtain a virtual address.
Your company name is the most crucial component. The name should be distinctive and accurately describe the essence of your business. Once you’ve chosen a company name, you must register it with Companies House, the government organisation in charge of registering and dissolving limited companies.
You must also acquire a virtual address that will function as your company’s registered office in the UK. To start a business, you need a registered office address in England, Scotland, Northern Ireland, and Wales. If you use wamo‘s company formation service and you need a registered office address, we’ll provide a virtual address when you register.
When you register with Companies House, it is required and necessary to have a business address for accountability and information exchange.
Once you’ve arranged your company name and address, it’s time to write a business plan. This will assist you in better understanding your company and serve as a guide for your future expansion.
STEP 4:
The following steps explain how to register your company with Companies House. You can accomplish this online and you will need to provide a few essential papers about company details, including:
- Name of the company and its address
- Stockholder information
- Information on the company director
- Articles of Association (AoA)
After the registration process is complete, you will get a Certificate of Incorporation, which serves as official documentation confirming your business has been duly incorporated in the UK. When you register your UK company using wamo’s company formation service we will send your Certificate of Incorporation to the address you provide when you sign up.
STEP 5:
Now for the final but vital step. After registering a company in the UK, you need a business bank account or one of the more advanced alternative business account provider like wamo which does the job of a regular business bank account but much more too.
Once you have a company incorporated in another country, it makes managing business finances much easier if you have a business bank account or financial management platform in order to organise and maintain your business effectively and with the right level of professionalism. Don’t skip this step: open a business bank account in the UK! When you register your UK company using wamo’s company formation service you can apply for a wmao business account at the same time.In this way you’ll have a UK registered company and a business account set up at the same time and within 48 hours!
Having a business bank account (or a wamo business account) will help you keep your personal assets and corporate funds separate, this is important when you start a business and becomes even more important as your business grows.
With wamo, you can have a company and a business account in the UK (you won’t need to apply for a separate business bank account – wamo will cover all your business banking needs). As you progress further through this article you’ll find detailed information about how opening a business account with wamo will give you everything a business bank account can give you and so much more. It’s possible to open a business bank account with a traditional bank from outside the UK but not as easy as using an alternative banking service provider like wamo. Traditional banks will require more paperwork, more of your time and often a sizeable initial deposit, whereas opening a business account with wamo can be done in 10 minutes and no deposit required.
What are the Types of Companies in the UK?
Investors can choose the most suitable company type based on their investment and long-term growth objectives when registering a company in the UK.
There are many different types of companies available. Top picks in the UK are sole proprietorships, partnerships and limited liability companies. Let’s look at these categories of companies.
- Sole Proprietorship (Sole Trader):
A sole proprietorship is a great company structure if you are a self-employed, an entrepreneur or need employees. There is no registration charge if you pick this business structure. If your annual income is less than €35,000 for goods or €24,000 for services, you are not required to register for VAT.
- Partnerships:
These types of companies are ideal for small and medium-sized companies. There are two types of partnerships.
a. General Partnership:
A partnership is created when two or more individuals participate in any commercial enterprise to generate and split profits.
In this situation, the partners’ responsibility is uncapped, and they can be held jointly and severally liable for the duties and liabilities of the partnership.
Each registered general partnership in the UK is required to maintain a local office. The partners are assessed at the applicable personal trade tax rate and must include the partnership earnings in their individual taxes.
B. Limited Partnership:
A limited partnership requires a minimum of two partners, one of whom must be a general partner with full authority. If there are many general partners, their responsibilities for assets and debts are divided among them—a minimum of one limited partner who contributes a certain sum of money to the company.
A limited partnership is a separate legal entity from its members. The liability of the limited partners is restricted to the amount donated to the partnership; nevertheless, the liability of the general partners is not restricted to the original investment in the business.
- Limited Liability Companies:
Public and private are the most popular types of limited companies. Private and public LLCs differ significantly concerning the minimum share capital thresholds and the number of shareholders.
a. Private Limited Liability Company:
The number of stockholders in the PLLC shall not exceed 50. A private LLC must have at least two different founding members, but the law also allows for forming a specific type of private exempt business with at least one shareholder.
When a company is registered, there must be at least one director for business operations and a company secretary for administrative duties. A private business must have a minimum authorised capital stock of €1,200 or its equivalent value. The paid-up share capital must represent the company’s capital of at least 20% throughout company registration.
b. Public Limited Liability Company:
There may be more than 50 shareholders in public corporations. About €47,000 is needed as the minimal authorised stock to register this company organisation. The amount may be expressed in € or another currency. At least 25% of the entire authorised stock must be made up of paid-up shares.
A public limited liability business’s authorised capital stock is divided into shares with a set nominal value. For investors to make a well-informed choice about buying shares, corporations that issue shares must provide appropriate information about the earnings and losses as well as their financial statements.
The UK’s most well-known type of company organisation is the limited company. A company limited by shares is the most preferred choice for most people looking to start a business. But opt for a sole proprietorship if you want complete control over your business. You might pick a partnership if you share administration and accountability with another person or group.
wamo offers accounts only to registered UK businesses (e.g. LLCs). Note that you will only be able to create a business account with wamo if you are a sole proprietor or another self-employed individual with a registered corporation. The good news is that wamo provides a company formation service that allows you to register a UK company
What do I Need to Register a Company in the UK?
You need specific information and documents when establishing a company in the UK. It’s good to know what these are. When registering a limited company in a different country, your basic information and documents must be complete. Thanks to innovation from fintech companies like wamo, the process of establishing a company can take as little as two days. But this can only be done through a third party fintech company if you have the necessary information and papers in place. Let’s take a look at what these documents are.
Memorandum of Association is needed first before any other documents. The MoA is a document that includes crucial and pertinent company information, such as:
The type of business, the shareholders’ names, the company name, the address of its registered office, its main aims, and its primary line of business.
Authorised capital stock, share classes, number of shares and their minimum capital stock, division of shares, and rights connected to each type of share; legal directors’ names and contact information.
Also, it includes the company secretary’s name and address; duration of operation; identification of all company officers, directors, shareholders, and legal and judicial representatives.
Documents for Companies House
- Business Name: You need a unique UK limited company name when setting up your business. You can find out whether the name you have chosen is available or not after you open a business account with wamo. It is also possible to find this out from the Companies House tool.
- Company Address: An address for the registered office must be one from where you can receive or forward mail. You can use a friend’s or relative’s residential address if you don’t live in the UK, although a registered office address is preferable. Your company name must include LTD or Limited at the end, which is Companies House’s legal requirement.
If you are in the UK, you may use your residential address or company address. If you already have a virtual business address, you can use that. If you still need a company address, wamo will provide you with a virtual office address in Wales, Scotland, Northern Ireland or England when you register. A virtual office address is a great solution for business types that have no need of a physical office or business address.
- Shareholder and Director Information: wamo will need your, your partners’, and your directors’ basic details. This includes personal information such as birth date, nationality, and home address. Business owners must fulfil specific conditions for business ownership and director roles to register a company in the UK. For instance, one must first meet the age requirement of 16 years old or older. However, your director doesn’t have to be a UK citizen for you to be eligible to register.
- Articles of Association (AoA): AoA is a formal legal document laying out the company’s internal policies. It outlines how the company’s internal issues will be handled and must be filed by every corporation. If the shareholders don’t submit a self-drafted Articles of Association, the sample AoA published in the First Schedule of the Companies Act will be applicable by default.
After the registration process is complete, you will get a Certificate of Incorporation, which serves as official documentation confirming your business has been duly incorporated in the UK.
Who can Register a Company in the UK?
Entrepreneurs can apply through wamo if they wish to expand their business into the UK market by registering a company there. With wamo, it’s possible to open a business account in the UK and form a corporation all in just two days.
Those who operate as independent contractors might also profit from wamo’s company formation and business account service. Having a UK registered company and business account will help if you collaborate with UK businesses in your industry as a freelancer, for example. A fintech company like wamo provides solutions for things like tracking expenses, and billing clients internationally. In as little as ten minutes, you can have accounts in both Euros and Pounds making it possible to get paid and to spend like a local form outside of the EU and the UK respectively. You can oversee all your transactions from the wamo app 24/7.
For people interested in the e-commerce sector registering a UK company and having a business account that offers both EUR and GBP IBANs will go a long way in helping to expand sales to international markets efficiently and benefiting from the services of hundreds of internet marketplaces like Amazon, Shopify, Etsy, and eBay.
This dual service from wamo will also benefit content creators who receive contracts for work from abroad making it easy to accept work from overseas while residing in a different country. You’ll be able to receive payments directly into your wamo account without any delays caused by complicated fees or unnecessary protocols.
As soon as you’ve established your new limited company you will have an IBAN account in either Euros or Pounds Sterling with the added ability to create multiple sub-accounts choosing a EUR or GBP IBAN for each one. It will be significantly easier to monitor payments made locally and internationally and you can pay quicker by using a Visa debit card that is accepted worldwide.
Why is the UK The Best Place to Set up a Company?
The UK is one of the most appealing marketplaces to expand business into, whatever the size of the business. With great transportation options, a sizable high-speed broadband network, and an abundance of competent employees, it is a stable and safe environment to live and work in.
The UK is supportive of international free trade agreements and the British government has gone out of its way to make it simple for new businesses to establish themselves there. It has a beautiful environment for business, with the sixth-largest economy globally and the fifth-highest GDP per capita.
The tax system in the UK is reliable and transparent. In contrast to what can happen in other places, you won’t have to worry about increased taxes without prior notice. In the UK, business owners don’t have to pay a high corporation tax and you will benefit from that too.
There are no capital gains taxes or payroll taxes either. You will only spend a little time on these issues because just 15% of small firms are required to submit quarterly VAT filings. Low tax rates for small enterprises also allow you to reduce your taxable income lower than if you were doing business abroad.
The UK is an excellent place to develop your business if you’re trying to do it abroad, as it’s home to one of Europe’s most cosmopolitan and diversified communities. Because of its long immigration history, the United Kingdom is seen as a melting pot of many cultures and customs. If you’ve still some concerns about opening a company in the UK, why not watch some of the inspiring YouTube videos created by various business owners who could inspire you with their own personal experiences.
Why Should I Choose wamo for Company Formation in the UK?
Because starting a business in the UK with wamo makes it all so much simpler. wamo will handle the entire process on your behalf and set up your new UK company and business account within two working days.
As a foreign investor, you won’t have to travel to or live in the UK in order to form a company there. With advancements technology being what they are, you can do it all online from beginning to end. Even better, technology makes it possible to use a registered agent to handle all the company documents on your behalf which means that it’s possible to start a business anywhere on the globe relatively quickly and with minimal hassle. There’s nothing to stop you from realising your business dreams now!
A big advantage of applying to register a UK company through wamo is that you can opt for a virtual office address if you don’t have a corporate location in the UK. If you have an online store, you’ll be happy to learn that you can advertise and sell your goods at a discount thanks to wamo’s affiliations with well known e-commerce platforms, ikas and Shopify.
Also, wamo’s customer service is it’s most loved attribute. The. team is always there for you with the expertise to help you at every stage of running your business. They give multinational and international customers support via the platform and promise never to automate their customer service with bots like so many other business banking providers and banks do.
How Can I Create an Account to Register a Business in the UK?
All you need to do is fill out the required personal and business information by downloading the wamo app or by going through the company registration procedure also on the app and accessible via the wamo website.
The first step to registering is to type in your e-mail address. Then, choose the company name that you want to use to register your business in the UK. They will check to see whether your chosen name is available to use or not. If the name has not been used by anyone else, you can use it as a company name. wamo only offers company registration for the private limited company type.
While filling in the necessary information, you can choose which industry your company is in. Then you’ll be asked to fill in essential information about your company. You will then confirm your identity by filling in your personal information. Doing this will mean that wamo can process your details to open a business account as well so that at the end of this short registration process you will have not just a UK registered company but a business account too.
Once you submit your company formation application, one of the fintech company’s representatives will contact you within 24 hours. You can communicate with them directly if you have any questions about company formation packages.
How Much Does It Cost to Register a Company in the UK with wamo?
wamo charges £99 for establishing a business in the UK and this includes a virtual office address and a wamo business account. This price does not include card and transaction fees. There are 3 subscription plans to choose from, simply choose the one most suitable for your business for now – you can always change plans later.
The 3 packages provided by wamo are: Start, Grow, and Scale.
For micro and small enterprises, the first plan works well. Monthly fees are €19.99. Next is the Grow plan, charged at €49.99 per month. This plan is ideal for expanding businesses or for small-to-medium-sized organisations. The Scale plan is ideal for medium-sized to large companies. The subscription fee for the Scale plan is €99.99/ month. You can create your company formation package by choosing the most suitable plan for your business.
wamo is currently offering their business account subscription free for the first 3 months to all new company formation customers.
You will also have 3 days to test drive the Shopify app for your new business in the UK – giving you maximum visibility in minimum time. If you choose to use Shopify, you can take up the affiliation offer wamo has with Shopify paying just $1 for your first three months. Shopify’s customisable templates are perfect for bringing your virtual shop to life as quickly as possible. You can do everything from marketing your goods and services to payment transactions through the Shopify app. It also provides the perfect secure solutions for money transfers and cargo shipping.
If Shopify isn’t quite what you’re after, wamo also has an affiliation offer with ikas: 1 year free use of the ikas platform. As with Shopify, ikas makes it possible to create your e-commerce shopfront quickly. Using ikas, you’ll be able to give your customers a fast-shopping experience in a very user-friendly environment.
Opening a Business Bank Account for a Registered Company in the UK
wamo allows you to effortlessly obtain a virtual address, a local business account, and simple financial services all from one place. It’s a payment and financial management platform that provides a UK company formation service – which makes it so much more than a bank while offering the same basic services that a business bank account would.
When registering a company in the UK, it’s strongly advised that you open a business bank account too. wamo makes this possible to do without the hassle and paperwork required by most traditional banks. If you have the necessary papers, you can get a business account sorted fast a- in just 10 minutes in fact.
Using this fintech company means that a business of any size can set up and manage the company accounts regardless of location and without the need to travel.
Unlike banks that usually have specific and often no longer necessary protocols that they have to follow that tend to slow down operations, the fintech company makes opening a business account and making and taking transactions easy and quick for entrepreneurs wherever they are.
By creating a business account with wamo, you can start doing business internationally straight away and take advantages of their features including virtual debit cards, multi-currency accounts, SEPA and SWIFT transfer options, and so much more. No physical documents are required; the wamo business account application takes place completely online.
The Benefits of Opening a Business Bank Account for your UK Company
wamo is not a regular bank. Therefore, it’s able to be more agile and flexible and to provide more services than regular banks can. With wamo, entrepreneurs can register a company in the UK and create a business account online in 10 minutes choosing a plan that suits their business structure and needs.
They make sending and receiving money straight into the company account fast, simple, and safe. Opening a wamo business account has extra advantages compared to regular banks too. For instance, you can create multiple sub-accounts, schedule future or periodic payments, and conduct business anywhere using SEPA and SWIFT alternatives.
wamo is great for managing team spending as well. You can request as many virtual and physical Visa debit cards as needed for your staff and set limits directly from your wamo app to oversee and control spending. This is a fantastic method for handling corporate cash.
As the account holders you can choose to create separate sub-accounts per currency, employee, or project, or for saving money for upcoming expenses – whatever you choose. You can generate reports and access analytics and data for each account.
Final Words
Thanks to company formation services in the UK provided by online service providers like wamo for non-residents, opening a company and a business account in the UK has never been simpler. To effectively do business in the UK, however, foreigners must be aware of and compliant with UK tax and business management rules, regardless of their location in the world.
Download wamo from the App Store or Google Play to register a company with Companies House in the UK. It is simple and quick to apply for a business account and to register a UK company simultaneously with wamo. The application takes just 10 minutes and within 48 hours you can have a UK company and business account up, running and ready for action.