Setting up New Companies – Key Aspects

One or more persons (‘person’ could mean individuals and companies) can form a new company for any legal purpose by subscribing to the Memorandum of Association published by companies’ legislation. While a person may deal directly with Companies House to form a new company, to understand the Memorandum and Articles of Association and qualify for suitability of new company set up, one must opt for professional advice from a company formation agent such as Companyformations24.7, which offers services for setting up new companies, 24 hours a day, 7 days a week.

A new company set up requires furnishing certain documents along with the registration fee to the Companies House. This information can be easily obtained at a formation agent's website like companyformation24.7.co.uk.

The Memorandum of Association is a written document that specifies the company’s name, the location of the company’s registered office, the company’s objectives and other details such as whether it will be a new limited company or a public limited company, and initial share capital with break-up. Each subscriber is required to sign the memorandum in the presence of a witness who is also required to sign the same before sending the document to Companies House. Each subscriber is required to take at least one share in the company and the subscriber’s name as well as the total number of shares taken must be listed appropriately.

The articles of association specify the rules and regulations for the internal operations of a new company. This document is also required to be signed by each subscriber as well as the witness. The articles for new companies limited by shares are called ‘Table A’. A company limited by shares has the choice of adopting Table A in part or full, with modifications or completely different articles, as desired. Such companies that adopt Table A without modification are not required to submit the Articles of Association to the Companies House – instead they may provide a letter to that effect along with the application. For a new limited company (limited by guarantee) Table C is applicable and for unlimited companies Table E applies. However, they do not have a choice as in the case of companies limited by shares.

The Form 10 provides details of the initial director(s), secretary and proposed registered office address, including directors’ names and addresses, their birth date, details of profession and other directorships held during the previous five years. Every appointed officer and subscriber is required to sign and date this form.

Form 12 is a statutory declaration statement indicating compliance with all necessary legal aspects associated with new company set up. This must be signed by a solicitor involved with company formation or any one of the directors or company secretary listed in Form 10, in the presence of an appropriately qualified person such as a notary public or solicitor etc.

For more advice on the above issues and other relevant matters, contact a professional representative of Companyformations24.7 or visit companyformations247.co.uk.