Registering a company in the UK is not expensive and we regularly see offers stating that the registration of a company is free with certain products. Many people don’t know how to register a company so this may be a very tempting, however this approach poses significant risks for companies.
There is so much more to the incorporation process than the mere registration of a company at Companies House. If you register a company, whether through an offer or through the web portal, it is highly unlikely that the company will be compliant.
A company registered in this manner will most likely adopt model articles, this will, at best, meet the minimum requirements for officers and shareholders. However, the issue with this approach is that it creates doubt and unnecessary issues for new directors. This leaves unnecessary doubt in the mind of the directors on several issues.
– Will the shares have been issued properly?
– Will all the Statutory Registers have been created properly?
– Are the model articles appropriate for your business?
These are just some of the concerns that stem from oversimplifying this process.
It is an exciting time starting your own business but be aware of your duties as a director as it could be very costly if you don’t. A business that starts life being non-compliant will face an uphill battle going forward. A short cut of merely registering your company at Companies House will inevitably lead to delays, regulatory headaches, and unnecessary costs. All of which can be avoided by getting it right on day one.
At MSP have seen too many examples of people trying to exit their business facing challenges due to poor compliance in the early stages. This includes deals to purchase the company falling through, or a significant reduction in sell on price – these are all avoidable issues. Invest a small amount at the outset to save thousands (literally, in many cases), at the time of exit.
This is why we would urge anyone wishing to set up a new business to do so properly and spend a little extra to do so. It is true that we, and others offering this service, do benefit from this the fees for putting it right later on. However, MSP is determined to be a part of our client’s progress. This won’t be achieved by sitting back and passively watching on as our clients make errors on issues that they are unexperienced in. We take this mission statement seriously and will be by your side in your progress.
Contact us to discuss how this relates to your company