6 Major Benefits of a Company Formation Agent
Starting a new company can be an overwhelming journey. With an unenviable number of tasks to complete, small business owners often turn to the services of a company formation agent to fulfil their business formation needs. And to help you launch your business trajectory, here’s six major benefits of a company formation agent:
1. A Company Formation Agent Helps You to Register a Company of Your Choice
An established company formation organisation will offer a wide range of incorporation packages to help you register most types of company structures, such as:
- Limited liability partnership (LLP)
- Private company with multiple share classes
- Company with altered or bespoke articles
- Company limited by guarantee
- Charity company
- Right to Manage (RTM) company
If you do not use a company formation agent, but instead choose to go it alone, then the above types of company incorporations will not be possible as Companies House only offers the online incorporation of limited by shares companies with ordinary shares and Model articles of association. Hence, the services of a formations company will help you achieve the desired company incorporation.
If you wish to set up another type of company, issue multiple share classes, or adopt altered or bespoke articles, then your company will have to be incorporated via post using Companies House form IN01.
2. A Company Formation Agent Provides a Simple Online Application Process
If you choose self-registration, you’ll have to complete Companies House form IN01 either online or via post — dependant on the type of company you are registering. This can be quite a tedious process as there are 34 pages to complete and many users are likely to find the complex terminology to be a hindrance. The last thing you want to do is return an erroneous application.
Using the services of a formations company can help you increase productivity as they’ll take the stress of the application away from you. Additionally, they’ll complete it faster than you’re likely to do so and you’ll be exposed to expert advice and assistance from an experienced team of professionals.
3. A Company Formation Agent Ensures Minimal Chance of a Rejected Application
If you choose a company formations agent, you’ll have to submit a pre-submission review: a simple online form to outline your company details and other information. Once this is done, your company formation agent will then thoroughly review the provided details for spelling mistakes, missing information, irregularities, and any other errors that may hinder your application or cause potential problems with Companies House down the line.
4. A Company Formation Agent Saves You Money and Time
As well as saving time on the application process, utilising the services of a company formation agent will cost less than doing it directly with Companies House. Additionally, a company formation agent is also likely to charge less than an accountant whose fees are typically from £200 upwards.
5. A Company Formation Agent Provides Professional Support
As well as providing long-term support throughout the lifetime of your business, an established company formation agent will offer crucial advice and assistance during the application process to ensure it’s a smooth process. They will outline all you need to know and supply, including the rules and regulations around a company name, company addresses, the appointment of directors, and issuing shares. They will also advise on the various implications of your company structure.
After incorporation is completed, your company formation agent will make themselves available to help with filing and reporting needs or various other queries and services you may need to successfully run your business. This typically involves free access to an online company management portal that will allow you to amend your company details with Companies House.
6. A Company Formation Agent Enables Access to an Array of Services
Many established company formation agents offer supplementary services, including assistance with:
- setting up a business bank account
- registered office services
- business telephone set-up and answering service
- VAT registration
- Confirmation statement
- and much more!
And don’t forget, as you grow your company, you’ll invariably need some of the services a company formation agent provides.
It takes approximately 8-10 days for postal applications to be processed and approved, of which 53% are normally refused compared to the 11% of online applications. And considering that a trusted company formations agent’s fees are normally less expensive than Companies House’s paper fees, it makes little sense to not launch your business journey with the help of an establishment that specialises in company registrations.
To find out more about the benefits of a company formation agent, and to begin setting up your business address, contact Your Virtual Office London, today.