What is company formation?

Company formation (also known as company incorporation or company registration), is the process of registering a limited company at ‘Companies House’. Companies House being within the Governmental Department for Business, Skills and Innovation – who specifically deal with the regulation and incorporation of limited liability partnerships and limited companies in the UK.

Upon incorporation, a limited company becomes an individual legal entity that is separate from their owners (directors etc) as well as responsibility for its own finances, liabilities, assets and contractual agreements. Likewise, once incorporated, companies must ensure they adhere to the accounting practices and reporting requirements as per the ‘Companies Act 2006’.

The fundamental role and activates of Company House:

  • Incorporating and dissolving limited companies
  • Getting information about all registered companies trading in the UK
  • Guaranteeing all corporate information on past and present incorporated businesses is available to the general public

Why register a limited company with company formation?

Primarily, the main reason to register a limited company with company house revolves around reducing the financial responsibility of the people who own the business. This protection known as ‘limited liability’ can be either limited by shares or limited by guarantee.

So, if a company limited by shares or guarantee becomes insolvent (for whatever reason), they are only liable for the value of their shares or only liable for the value of their guarantees. For instance, if someone has invested £500, they cannot hold the company liable for any more than £500. Their personal finances and assets are protected beyond the limit of their liabilities.

Moreover, limited company formation creates a more professional persona for the company. It gains the advantage of being viewed as more trustworthy and established from various internal as well as external stakeholders.

Company limited by shares vs company limited by guarantee?

Private companies in the UK must be incorporated as limited by shares or limited by guarantee. The limited by shares structure is mostly adopted by businesses that seek to make a profit for the benefit of their owners. Contrastingly, the limited by guarantee is used mostly by charities and non-profile organisations who aim to generate enough money flows to achieve their non-profit objectives.

What does the company formation process entail?

The entire process of UK company formations can be carried out via post or online. Though the latter is recommended, as it can be incredibly quick with approval being granted within three hours compared to 2-10 working days taken by post. Additionally, soon as your application is approved you can start trading as there no set time restriction which can prevent you from doing so. To register a private company limited by shares or guarantee, the following basics are required:

  • Company name (that has not only been registered or being currently used)
  • Office address registered in within England, Wales, Scotland or Northern Ireland
  • Minimum of one director
  • Minimum of one shareholder or guarantor
  • Share capital of at least one issued share (limited by shares companies only)
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Singapore is one of the leading Asian countries for business and commerce, and has been rated as one of the best business environments in Asia and the Pacific. Small and large business people are attracted to this small country.

If you plan to start a business in Singapore here are some useful tips that can help you in Singapore business mixing process. The below are all based on knowledge gained when starting a company specialised in halal certification in Singapore.

The Singapore Companies Act
Individual should be aware of Company Law Singapore (SCA) if he / she plans to set up a company in Singapore.Singapore Company Law has virtually governed almost any type of business but be aware that there is some form of business which may fall under some regulations depending on the type of business in question

Things needed for Singapore business created

The law states that in order to create a company in Singapore, the company must have a minimum of

  • 1 Shareholder
  • 1 Director
  • 1 Company Secretary

It is necessary that the director of the company be resident in Singapore. The Director should be a Employment Pass holder. An individual without history of bankruptcy and 18 years and over is only permitted to be a business leader.

A maximum of 50 shareholders are required for a company in Singapore, but requires just a single shareholder. Individual and legal entities are accepted as shareholders. The director mentioned could be the proprietor of the company share, but could also be another person. They accept full shareholdings from locals or foreigners.

Company secretary
A secretary should be present in a company under the SCA. The secretary shall be appointed six months by the company’s foundation and shall be based in Singapore.

Capital for starting up
It is well known  that S$1 Minimum initial paid-up share capital.

Minimum paid-up capital for registration of a Singapore company is S $ 1 unless you are an EntrePass holder, in which case the paid-up capital will be S$50,000.
A business should have a properly registered address.

The office address must be a Singapore registered address and addresses with a mailbox are not allowed.If a service from a professional provider is present, the entire process will now be easy. A professional provider will not only help you to register a company in Singapore, but will also help you throughout the process of business incorporation.

Professional business incorporation services ensure that they provide you with the correct information, accurate documentation and where to get the right resources to set up a business in Singapore.

A good business interference service gives you recommendations regarding appropriate conditions for licensing to the type of business you have and apart from that you can also take advantage of their concierge services such as finding the location of your office there Fits your business, build your IT and network infrastructure etc.

There are a lot of companies that can provide you with significant services for success in your business like tax advice, bookkeeping and incorporation. If you need help with more info on how to register a company in Singapore, please visit the link.