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Standard Company Formation

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What else you might like to know about Standard Company Formation

If you are forming a company in the UK, the business’s structure will shape your legal obligations. A legal service provider will advise on company formation and prepare legal documentation. Here is some basic guidance to inform your choice of legal expert.

What is a standard company formation?

Forming a company requires you to take a number of steps to legally establish your business. If you are forming a private limited company this would include registering with Companies House. This requires you to supply information such as a company name, registered business address, any directors and at least one shareholder.

Can I upgrade an existing company/sole trader status?

Yes. If you have conducted business as a freelancer or sole trader and wish to incorporate your company then it is necessary to go through the process of company formation.

How long do I have to register for corporation tax?

HMRC requires you to register for corporation tax within three months of starting to trade. HMRC's definition of starting to do business includes any buying or selling, employing staff, renting a property as a business space or buying advertising. Failure to register after any of these activities can result in a fine.

How much can I expect to pay for legal services?

Legal service providers may choose to operate on a fixed fee or hourly rate basis for company formations. It may, however, be possible to reclaim some or all of the money spent on fees as a business expense. This would be done retrospectively once the company has started trading.

How can a legal service provider help?

Aside from advising on the general process of forming a company, as well as any extra taxes or fess that must be paid regularly, A legal expert is well placed to advise on the process of forming a company, taxation matters and any complexities that a particular type of business might face. An experienced legal service provider can help you to form a company with the future in mind, avoiding any further complications as the business expands or evolves. This might include preparing a business for the addition of new shareholders, requiring shareholder agreement contracts.

How can I choose the best legal service provider?

It is worth considering a number of factors when choosing a legal expert to assist with company formations. You may wish to consider factors such as the location, reputation and cost of a firm before making your decision.


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