When deciding whether or not you want to start the process of company incorporation, you may be faced with the question of whether you should form your own company. Why don’t I choose a ready-made, “off-the-shelf” company that has already been formed?

An “off-the-shelf” company is a company that has previously been formed, often by a formation agent. They are formed with a certain number of directors, shareholders, a company secretary, and even possibly a company name in place. Therefore, if you decide to purchase one of these standardised companies, you effectively purchase the shares from the formations agent. This will allow you to appoint directors, a secretary, and change other details as per your requirements. However, this in itself requires a degree of time and effort.

“Off-the-shelf” companies used to be seen as the quickest way for an individual to acquire a company. The idea was most prominent when company formation took place through paper submission of relevant documents to Companies House. However, with the option of online company formation now readily available, the popularity of “off-the-shelf” companies has diminished.

Instead of purchasing and altering a uniform company, many people now opt to incorporate their own company. This process allows you to make all the necessary, important decisions from the beginning, such as appointing directors. Forming a company yourself avoids the amendments and questioning of the company’s history that may be experience when acquiring a ready-made company.

Your company formation can be completed through one of three methods:

• Directly: this requires you to fill in copies of the required forms yourself, and provide tailored memorandum and articles of association. Companies House will charge you a fee for this, of £18 online or £40 for paper copies.
• Lawyer/accountant: your lawyer or accountant will be able to complete the company incorporation on your behalf. However, this is often the most expensive method of formation, as they will charge for your time in addition to the fees of the process.
• A formations agent: using an agent, such as Wisteria Formations, requires you to fill in a simple online application form. Following your order, when you have sent copies of your identification, the rest of the work is completed by the agent. They will fill in the details and submit your application to Companies House. Most agents will also be able to offer additional important services that will help the successful running of your new company, such as PAYE registration.

If you have any questions regarding company incorporation, please don’t hesitate to contact us on 0844 893 0808.