What Is Company Formation?

Company formation is the legal process that deals with forming a company. In most international law and in UK law a company or corporation is separate to the people that operate or own the business. Companies can be set up by a wide range of different peoples or groups. They can be created by specialised agents on behalf of an individual or by the individual themselves.

They are also often arranged by accountants or solicitors but the majority of these companies are set up by specialised agents. In the UK the majority of the companies that are set up are done so on a package tend to cost between 100 pounds and 20 pounds. There are a number of requirements that need to be fulfilled to complete the registration process and a number of documents that need to be provided for the application to be completed.

Paper process

To form a company there must be a number of documents that are submitted alongside a fee that is submitted to the Registrar of Companies.

Memorandum of Association

The memorandum of association is the document that puts in writing some of the details of your company. It includes the company name, the registered office address of the company and the objects of the company that the people wish to create. These objects refer to the aims of the company and can be as basic as to wanting to continue trading as a general commercial company. This document must be signed by each of the subscribers that want to be recognised in the company and these signatures must be witnessed by someone that is not affiliated with the business.

Articles of Association

This is the document that deals with the rules and regulations by which the company will operate its internal affairs. This document must outline these rules and must be signed by a registrar and also must be signed by each subscriber and also as per the memorandum of association be signed by a witness.

Form 10

This form highlights the names and addresses of the key members of the company. This includes the details of the first directors the secretary and also the address that the company will reside. The information included in this form includes date of births, occupations and a list of other companies in which the members have been a director in the past five years. The form is also signed and dated by each of the subscribers.

Form 12

This document deals with the legal requirements of the company and states that the company will adhere to the legal requirements expected of it. This document is statutory and it must be signed by the solicitor that is helping to form the company or the one of the subscribers. It must be signed in front of a representative such as the justice of the peace, a solicitor or a notary public. This form usually carries an additional five pound fee.

Electronic Process

The electronic process of company formation is very similar to the paper format - the main difference being that it can be submitted electronically. It can mean that your company is set up in as little as 5 minutes. The main difference is that this process does not require filling out the form 12 which makes the process much quicker than conventional arrangements.

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