Business owners across the globe are keen to have UK company registration. There are several reasons owing to which the business owners have preferred to open a company in the United Kingdom. To open a company in the United Kingdom, one needs to know certain things. If someone wants to select between limited company and sole trader company then he needs to be aware of the detailed information as this will help him take best decision for UK company formation. While forming a company one should consider the advantages as well as the disadvantages of both kinds of businesses. 

Is Being A Sole Trader A Preferable Option During UK Company Registration? 

You can set up sole trader business by following some simple steps. The process is quick and you can start the business within a short period of time. If you are a sole trader then you will make decisions alone. It will help you act fast. In case of a wrong decision, you will have to face loss as no one would be there to guide you. Many of the sole traders find it problematic to get finance from different institutions. Therefore, they might have to risk their personal assets for the business. As you are the only owner of the company, you should keep proper record of income as well as expenses. You should also keep in mind the tax obligations as well as time tables to pay tax. When you have started a sole trading company then you should inform Inland Revenue about company formation within three months. If you need assistance in any kind of work then you can appoint eligible employees. 

Limited Company: Know Facts Before UK Company Formation 

Limited companies are obviously bigger than the sole trader companies. These companies have multiple members who are assigned with different responsibilities. This helps the company to run effectively. It is not a very simple task to form a limited company. To form a limited company, one needs to follow several guidelines. The process is time taking as there are several documentations involved in the process. A company needs to qualify several steps to get registered as a limited company.

 Though it takes time and several rules are involved to open a limited company but people have preferred it for many reasons. One of the major reasons which have attracted people towards such companies is because it keeps them secured from debts related to business. Limited companies can easily collect the fund they require and the members do not have to risk their properties. In some cases, people enjoy some benefits of taxations from the limited companies. It is easy to manage a limited company and there is less chance of loss. All the members take the decisions united and so there is less chance of a mistake that might make the company suffer loss. It often takes time to come to a decision and if it is too late then it might affect the company adversely. 

Some people are interested on partnership business. Whatever be your choice, consider everything about it before starting it.