Last Updated on November 6, 2024 by admin
How to register company in UK from Pakistan? Starting a UK limited company from Pakistan may be both an exciting and satisfying business venture, but it requires careful planning as well as compliance with the relevant legal and regulatory requirements.
In this step-by-step guide, we will examine the key considerations and actions that need to be taken into account before incorporating a UK limited company from Pakistan. It will also act as a complete roadmap for Pakistan entrepreneurs wishing to expand their businesses into the UK market as it covers issues such as understanding the legal requirements, choosing a business structure, registering with Companies House, and many more.
Understanding the legal requirements for starting a UK Ltd company from Pakistan
Choose your business structure
You can either incorporate a limited company, go for sole trading or a partnership. Each option has its pros and cons such as liability, taxation policies, and administration.
There are four types of business structures in the UK;
Sole trader: This is the simplest form of doing business whereby one individual operates independently with no formal legal requirements surrounding him or her. Therefore, any debts that are left unpaid by the firm are treated as personal debts of the sole trader who also must submit annual returns to HMRC. Notably, there is no obligation to pay corporation tax on the profits generated.
Limited company: This structure is distinct from its owners or directors, meaning that the company itself bears responsibility for its liabilities. This structure offers limited liability protection to directors, owners, and shareholders.
Limited Liability Partnership (LLP): An LLP is a hybrid model that merges elements of a traditional partnership with those of a limited company. It possesses a separate legal identity, which influences the liability of its partners, thereby providing them with limited liability protection concerning the business’s debts and obligations.
Unincorporated partnership: This kind of partnership consists of two or more persons collaborating to achieve a common profit. Therefore, it may be established with the help of a partnership deed or even without formal writing. However, partnerships have become rare today because there is an increasing number of registered organisations; nevertheless, they maintain some flexibility.
Check your company’s name availability
In the UK, there are rules and regulations of a name you choose for your company. Selecting an appropriate name for your company is a crucial aspect of the company formation process. The name you select must adhere to specific regulations established by Companies House. The name must be unique and not resemble any existing company names listed in the Companies House register. Failure to comply with these criteria may result in the rejection of your application. Therefore, verifying the availability of your chosen name is imperative.
You can check the availability of your company name through the Companies House Company Name Availability Checker. Furthermore, certain words and phrases should not be used before they can be approved. It is prudent to avoid using insensitive terms that could lead to legal issues.
For example,
- Terms that indicate pre-eminence, specific status, or functions (e.g., ‘British,’ ‘Institute,’ or ‘Tribunal’).
- Indicating an association with the UK government, devolved administrations, or specified public authorities.
- Employing terminology that denotes regulated activities.
- Incorporating language that may constitute an offence.
Choosing a suitable name for your firm is among the most crucial stages in starting a business. A company name does not just identify your company; it also stands for the principles and objectives of your organisation. Consequently, it is crucial to verify the availability of your selected name.
Register your company
When registering a company, there are documents one must have. To successfully register your company, it is essential to prepare all necessary documents in advance to ensure a seamless and efficient process. Below is a list of the required documents:
- Identification documents: Directors must possess a valid photo identification and proof of address to verify their identity and residency.
- Valid UK address: The company is required to have a legitimate UK address, which should be suitable for receiving correspondence.
- Details regarding the type of company and its primary business activities.
- Information about directors and shareholders, including names, nationalities, and identification numbers.
- A comprehensive outline of the business structure, including the type of company (such as limited by shares or limited by guarantee), shareholding details, and share capital.
You will also need to prepare two documents: the Memorandum of Association and the Articles of Association. The Memorandum of Association is a legal statement signed by all initial shareholders and the Articles of Association lay out the company’s internal rules. These documents are crucial to formalising your company’s management structure and internal rules.
Your company is required to have at least one human director, while other directors and shareholders may be corporate entities. Directors are not obligated to be UK residents.
However, a person has to be at least 16 years old, should not be bankrupt at the moment, and should not have experienced any disqualification as a company director to be eligible for the position of a director. The owners of the corporation and vote on issues related to it are shareholders. A company limited by shares must have a minimum of one shareholder. If you are the only shareholder, you will own the entire company. There is no maximum number of shareholders that a company can have.
Once you have all those documents ready, you can start your application process. A company formation agent can simplify the intricacies of the registration processes. BusinAssist is dedicated to helping new and potential Pakistan entrepreneurs who want to expand their businesses in the UK to register seamlessly and without hitches.
Our UK company formation service takes just a few minutes for you to fill in your online application form. In doing so we shall be able to help you create your new company and register it with Companies House, hereby providing relevant documents is required.
The period taken by Companies House for processing the formation of a company normally ranges from one to two working days. When your UK company incorporation is approved, we will email you all the necessary company formation documents. If Companies House rejects your application, you will be required to submit a new application and pay the fees again. However, we offer an Insurance option for a nominal fee of £2.99, inclusive of VAT. By selecting this insurance, we will reapply for you at no additional cost.
Conclusion:
Starting a business in the UK may seem like a complex process, but with the right guidance and tools, it becomes a manageable and straightforward journey. By ensuring you have the necessary documents and understanding the roles and responsibilities of directors and shareholders, you’re setting a solid foundation for your company’s success.
For more information, contact us at [email protected].
FAQs
Q: How much does it cost to register a UK company from Pakistan?
Ans: Registering a UK limited company from Pakistan involves costs of registration and additional services if one requires them. With BusinAssist, Pakistan entrepreneurs can register their UK limited company for £0.88 per week using one of our London virtual addresses.
Q: Do I need to check for trademark issues when selecting a company name?
Ans: Yes, it is important to check for already registered trademarks when choosing a company name for legal protection and brand identity. Ensuring your company name isn’t already trademarked helps you avoid legal disputes and potential rebranding costs. Additionally, a unique name helps establish a distinct brand identity, which is crucial for marketing and customer recognition.
Q: Is it worth getting a company formation package?
Ans: Opting for a UK company formation package can be quite beneficial, especially if you’re new to the process. These packages often include all the necessary steps and paperwork, saving you time and effort. They also include additional services like registered office addresses, mail forwarding, telephony services, and even help with opening a business bank account. The package can also be more economical than paying for each service separately.
Q: Do I need to travel to the UK for any part of the process?
Ans: No, you don’t need to travel to the UK to register a company. The entire process can be completed online from Pakistan. You can register your company through company formation agents such as BusinAssist. We offer comprehensive packages that handle everything remotely, including legal compliance and address services.
Q: Is it legal to open a UK company from Pakistan?
Ans: Yes, it is legal to open a UK company from Pakistan. There are no limitations regarding location or nationality when it comes to forming a company in the UK. For Pakistani residents wishing to register a company in the UK, the minimum age requirement is 16 years, and it is necessary to provide identification and proof of address. The procedure includes choosing a business structure, gathering the required documents, and completing the registration with Companies House.
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