Set Up a Company in UK

By: Ingress | Posted: 11th March 2011

Did you know that UK sees more than 350,000 new company registrations every year? This tiny island also has more than 2.5 million registered companies. Clearly, there are many reasons that contribute to the great popularity of the UK as a business location.

Legally, you do not require any special permission set up a company in UK. That said, there are certain policies regarding the selection of names. Also, certain kinds of businesses may require special licenses or authorization. Fortunately, in order to give their flailing economy some muscle power, the government has further simplified the process of company set up through the introduction of the 2006 Companies act, which came into force in October, 2009.

UK has always been an easy place for the set up of companies. The 2006 Companies Act has made it simpler still. The objective of this act so far has been to negate the need for voluminous legislation, which was a stumbling block to the formation of companies, particularly small companies. Thus, thousands of pages of corporate law become history. Of course, even in its slim avatar, the legislation is weighty enough but there is a serious advantage when unnecessary legislation is trimmed away. "Modern, understandable and flexible", that is how experts define the newly ratified law.

The new set of legislation is particularly sensitive to the way small businesses operate and work. It acknowledges the difficulties of such businesses and thus makes a sincere attempt to simplify accounting and financial reporting. This is precisely why the new law has strived to bring in more clarity regarding aspects such as share capital while doing away with cumbersome procedures like the need for a company secretary or the necessity for annual shareholder meetings.

One of the major impacts of this new legislation is the way it will help UK bring its businesses up to the mark in global competitiveness. Through these laws, new companies set up in the UK will be at balance with or even better than businesses in the rest of the world. With this in mind, the government has made certain changes, like increasing the shareholder's engagement by allowing them to increase their investment in their own company. The new law also gives much needed support to easy communication as it encourages quick, productive communication between shareholders. This greatly increases the quality of decisions that are made in board meetings.

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Tags: 5 million, small businesses, popularity, objective, accounting, clarity, new legislation, stumbling block, avatar, business location, muscle power, financial reporting, share capital, company secretary, companies act