How to Set Up a Company in the UK Online

Discover how to set up a company in the UK online, a country that offers a dynamic business environment.

Nowadays, you can establish a company completely online thanks to the digitalisation of the registration process.

This is possible because the UK strives to develop stable and transparent policies that promote trade and investment.

Below, we provide a structured guide on how to register a company online in the UK, from choosing a name to complying with tax regulations.

1 Choosing the Type of Company

2 Registering a Company in the UK Online

3 Registering the Business with HMRC

4 Opening a Business Bank Account

5 Complying with Regulations and Licences

6 Marketing Strategy

7 Data Protection and GDPR Compliance

8 Conclusion on How to Set a Company in the UK online

1 Choosing the Type of Company

The most common types of legal forms are Sole Trader (self-employed) and Private Limited Company.

For most entrepreneurs looking to protect their personal assets, the Private Limited Company is usually the best option.

2 Registering a Company in the UK Online

To do this, you must choose a unique company name. You can check if your chosen name is available on the Companies House website.

Once this is confirmed, the registration process can be completed on the same website by filling in a form.

Then, you will need to provide details such as the company name, registered office address, directors’ and shareholders’ identities, as well as the SIC code (Standard Industrial Classification code).

After that, you only need to pay the registration fee (around £12) and confirm the registration.

Within 24 hours, your company will be formally registered with Companies House.

3 Registering the Business with HMRC

HMRC (HM Revenue & Customs) is the institution responsible for tax collection in the UK.

It is necessary to register through its website to comply with tax obligations.

You must register for the taxes applicable to your chosen business type.Some of the main taxes include:

Corporation Tax is the corporate tax, mandatory for all Private Limited Companies.
VAT is a value added tax. Whether you need to register depends on your annual turnover.
PAYE (Pay As You Earn) is a tax you will need to pay If your company have employees. In this case, you must register for PAYE to manage payroll deductions.

4 Opening a Business Bank Account

Although not a legal requirement, having a business bank account is highly recommended.

Just as setting up a company in the UK online is possible, so is opening a bank account.

One notable option is Revolut, a solid and innovative financial institution offering low-cost digital banking services.

For example, you will benefit from the ability to hold multiple currencies in your account and advanced security systems.

5 Complying with Regulations and Licences

Depending on the type of business, specific licences may be required. Some examples include:

Alcoholsales licences
Health permits for food businesses
E-commerce licencesThese licences can also be obtained online, but it is crucial to be aware of all the necessary permits for your business operations.

6 Data Protection and GDPR Compliance

It is essential to comply with GDPR (General Data Protection Regulation) if your company handles customer information.

This means obtaining explicit customer consent to collect personal data and ensuring the security of that information.

7 Marketing Strategy

Once your company is established, developing your online presence is equally important.

Some key steps include registering a domain name, creating a website, and considering digital advertising.

8 Conclusion on How to Set a Company in the UK online

Setting up a company in the UK online is a simple and fast process, as outlined in this article.

Additionally, registering your company this way will allow you to start operating immediately.

Finally, seeking support from professionals specialising in UK regulations and taxation would be highly beneficial.