A company formation agent is an independent, professional firm that specialises in the registration (aka ‘incorporation’ or ‘formation’) of companies at Companies House. In addition to facilitating online incorporation in accordance with the Companies Act 2006, formation agents provide specialist advice and support throughout the application process and beyond.
Their services make it easier for new and existing businesses to set up companies, whilst also removing much of the administrative burden from Companies House. The end result is simple, fast, and cost-efficient company registration.
What are the benefits of using a company formation agent?
Using an experienced and reputable company formation agent that has completed testing with Companies House and is authorised to file electronic incorporations provides numerous benefits. By taking care of the complex, time consuming elements (i.e. the really boring bits) of the application stage, company formation agents are able to simplify and streamline the entire incorporation process. This makes life easier for everyone involved.
1. You will save time and money
Using the services of a company formation agent often costs less (sometimes as little as £14.99 plus VAT), than doing it directly with Companies House or using the services of an accountant who will typically charge in the region of £200 to £300.
Company formation agents also happen to get applications processed and approved in the least amount of time – usually within a few working hours. This is due to the fact that agents take on many of the administrative and support functions that would otherwise fall on Companies House.
2. Simple online application process
If you choose to set up a company through a formation agent, you will need to spend a few minutes filling out a very simple online application form. There’s no confusing language to deal with, the form is easy to use, and you will have access to specialist advice and assistance from a team of company formation experts who will help you to complete your application.
If you register a company yourself, you will be required to complete Companies House form IN01, either online or by post (depending on the type of company you’re setting up). Consisting of 35 pages, this form is quite complex and time-consuming. Many people also find the terminology difficult to understand, which often leads to mistakes and rejected company incorporation applications.
3. Less chance of your application being rejected
When you have filled out the simple online application form, your company formation agent will carefully review the information you have provided, checking for spelling mistakes, errors, missing information, irregularities, and anything else that may create problems for you in the future or cause Companies House to reject your application.
Following this pre-submission review, expert staff will finalise your application on Companies House form IN01 and submit it to the registrar for approval. It will be filed electronically, which is the quickest method of delivery and the best way to safeguard sensitive data.
4. Professional advice and support during and after incorporation
An experienced and reputable company formation agent can provide expert advice and step-by-step assistance during the incorporation process, in addition to offering ongoing support throughout the life of your company.
They can explain all of the requirements, including company name rules and regulations, company addresses, the appointment of directors, and issuing shares. They can also advise on the company structure that will best suit your needs.
After incorporation, your agent will be on hand to assist with filing and reporting obligations and any other queries or services you may require to manage your company successfully. This will often include free access to an online company management portal, which will allow you to maintain and change your company details with Companies House.
5. You can incorporate any type of company online
Most company formation agents provide a range of incorporation packages that enable the online registration of any type of company structure, including:
- Private company with multiple share classes
- Company with altered or bespoke articles
- Limited liability partnership (LLP)
- Company limited by guarantee
- Charity company
- Right to Manage (RTM) company
These options are not available if you choose DIY formation because Companies House only provides for the online incorporation of limited by shares companies with ordinary shares and Model articles of association. To set up any other type of company, issue multiple share classes, or adopt altered or bespoke articles, you would have to incorporate your company by post using Companies House form IN01.
Postal applications take at least 8-10 days to be processed and approved, of which 53% are rejected, as compared to 11% of online applications. Companies House fees for paper incorporations are £40.00, which is more than treble then what our fees start at.
6. Access to additional professional services
Many company formation agents offer additional professional services, including help setting up a business bank account, registered office and service address facilities, business telephone services, VAT registration, Confirmation statement preparation and other document filing, a free online portal to manage your company, and many other essential business services and referrals that you will require when running a company.
Set up a company through Quality Company Formations
Based in Covent Garden, London, Quality Company Formations has been providing simple and affordable company registration services to UK businesses for many years. Our knowledge, experience, and commitment are reflected in our consistently high rating on Trustpilot, where we enjoy an excellent 4.8 out of 5.0 TrustScore, and our rating of 4.9 out of 5.0 on Google Reviews. It is by virtue of our high standards, expert team, and happy customers that we remain one of the most reputable and highly trusted company registration agents in the UK.
At Quality Company Formations, we are able to offer our clients a wide range of company structures, including private companies with multiple shares classes and bespoke articles, limited by guarantee companies for non-profit or charitable organisations, and Public Limited Companies. All of these types of company structures can be set up online, so there is no requirement to deal with any paperwork or postal applications.
We also provide many additional services that are of great benefit to new and existing businesses, including a prestigious London Registered Office, a Service Address and Business Address facilities, virtual office services, document preparation and filing, and much more.