If you are planning to set up a company in the UK, you may have run across a few company formation agents and wondered if you should use an agent to assist you with the set up process.
There are a few misconceptions about company formation agents, what they do and what they cost. Many people believe that these services are outrageously expensive and unaffordable. The simple truth is that using a company formation agent will not cost you much more than it would cost to set up the company yourself through Companies House.
Because a company formation agent completes your company formation online, the rates are lower. If you set up the company yourself and use the internet to do so, the entire process will be a bit less expensive than by using post. Using a company formation agent is not going to add much more to your overall cost and there are a few benefits of using an agent, particularly if you are new to the entire process of setting up a new company.
Some also believe that setting up a company is such a simple process that it is just easier to do it themselves. While this is true in some cases, if you have never gone through the process of company formation then you may very well need the assistance of someone with experience in these matters. You have to complete a long application form for Companies House in order to register your company and you have to draft a Memorandum as well as an Articles of Association. If this is something that you are not comfortable doing for yourself, you should seriously consider a company formation agent to ensure that all of these important forms are filled out properly.
Completing the paperwork alone could take hours of your time and again, it is important that all of the paperwork is filled out properly. Company formation agents have experience in filling out the required forms and can assist you with other things such as choosing a unique company name and ensuring that everything is filed with the proper departments.
Because they do everything online, a company formation agent can actually have the business registration process done in a matter of hours. Online formation is quick and easy, and all of your required information is instantly submitted to Companies House. This means that your business will be registered sooner, and you can begin trading, sometimes on the same day.
It is important to understand that there are exceptions to every rule. This means that you have to do your homework with regards to choosing a company formation agent. Not all of them are going to seamlessly register your company or get you up and going in the same day. Take your time and choose an agent, if you plan to use one, that has a good reputation for assisting new companies in their set up and select the one that seems to be best for your new business formation.
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