{"id":1672,"date":"2024-09-03T17:23:03","date_gmt":"2024-09-03T17:23:03","guid":{"rendered":"https:\/\/omg.one\/blog\/?p=1672"},"modified":"2024-11-07T10:52:06","modified_gmt":"2024-11-07T10:52:06","slug":"company-formation-mistakes","status":"publish","type":"post","link":"https:\/\/omg.one\/blog\/company-formation-mistakes\/","title":{"rendered":"UK Company Formation: 5 Mistakes You Should Avoid"},"content":{"rendered":"\n

Forming a company in the UK is an exciting milestone for any entrepreneur, but it can come with some challenges \u2014 especially when you may be unfamiliar with local regulations and requirements.<\/p>\n\n\n\n

With Omega, business formation in the UK has never been easier. Think of us as the \u201cbusiness-in-a-box\u201d solution to help you start your new business from scratch. We can help with anything from accounting to legal services. <\/p>\n\n\n\n

But even with all this help, there are still some new business formation<\/a> mistakes that can feel inescapable. We want to help you avoid them. In this blog, we will break down the 5 most common mistakes businesses make and how you can avoid them.<\/p>\n\n\n\n

Common Mistake 1: Choosing the Wrong Company Address<\/h2>\n\n\n\n

Your company address is where all your official communications will be sent, and it will be visible on the public register.<\/p>\n\n\n\n

Choosing the wrong address (or a bad one) can lead to missed mail and ultimately harm your business’s credibility and legal standing. And trust us, that is the last thing you want.<\/p>\n\n\n\n

\"Choosing<\/figure>\n\n\n\n

Keep in mind that if you don\u2019t want to, you do not need to use your current office or workspace. You can even use your home address if that suits you, but remember, this address will be public. So if privacy or image is a concern, you might want to look into getting a virtual address.<\/p>\n\n\n\n

A virtual address offers you a professional location that keeps your personal address private and positions your business in a premium area.<\/p>\n\n\n\n

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Simple Solution:<\/strong>
Easily get a secure and premium corporate UK address with Omega.<\/p>\n<\/blockquote>\n\n\n\n

Common Mistake 2: Not Providing Proper Documents for Sensitive Words<\/h2>\n\n\n\n

When forming a new business, you will have to follow the UK\u2019s rules and regulations on name selection<\/a>\u2014and while everyone focuses on checking trademarks and ensuring that the name they choose is not being used by another business with name availability checkers<\/a> (which are both incredibly important), something that often gets overlooked are sensitive words.<\/p>\n\n\n\n

Sensitive words are specific words that require extra prior approval because they imply a status or function. There are about 134 sensitive words.<\/p>\n\n\n\n

Words like \u201cBank,\u201d \u201cKing,\u201d \u201cSociety,\u201d \u201cFund,\u201d “Trust,” and over a hundred more sensitive words<\/a> have to be approved before you can legally use them since it often suggests that you are connected to a government authority or regulated sector.<\/p>\n\n\n\n

So what happens when you use these words without permission? Simple. Your application will be rejected.<\/p>\n\n\n\n

To use a sensitive word within your name, you\u2019ll need to provide supporting documents from the relevant authority. If you want to use the word \u201cBank\u201d in your name, for example, you\u2019ll need to get written approval from the Financial Conduct Authority.<\/p>\n\n\n\n

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Simple Solution:<\/strong>
Do not use sensitive words within your company unless you are willing to provide proper documentation that shows you have prior approval.<\/p>\n<\/blockquote>\n\n\n\n

Common Mistake 3: Forming the Wrong Type of Company<\/h2>\n\n\n\n

In the UK, the most common types of corporations<\/a> are Limited by Shares and Limited by Guarantee.<\/p>\n\n\n\n