Making sure your application to incorporate is not rejected
Last financial year Companies House incorporated over 644,000 companies, 99% of which were done online and 1% on paper. Over 8% of online applications to incorporate and nearly 53% of paper applications were rejected. Many of these applications were for quite straightforward reasons which could easily be avoided.
Electronic applications are usually processed within 24 hours of receipt whereas paper incorporation usually takes up to 10 working days to process.
Further guidance on setting up a limited company can be found on the Qdos Accounting website.
To avoid your incorporation application being rejected there are a number of useful tips to follow before submitting it:
- Check the name using Companies House name availability checker and check it again just prior to submission. This will help ensure that the proposed name is not regarded as the same as one already in existence. Make sure the name is consistent throughout the incorporation documents and any supporting documentation.
- Check that if the company name contains a ‘sensitive’ word, one that will require supporting documentation and that support is submitted with the application. A list of words and expressions can be found here.
- Make sure the correct memorandum is with the IN01 and is dated and signed correctly.
- Individuals must show their nationality in a correct and acceptable form. Nationalities that ae not acceptable will result in the application being rejected.
- Make sure the full names of the officers are shown and that initials are not used.
- Check the subscribers to the company are correct and the company is not shown as subscribing to itself as often happens. A subscriber must have its own legal personality. If the subscriber is a corporate body you must ensure that you have evidence to confirm that it has legal personality.
- An officer is only to claim exemption under Section 243 of the Companies Act 2006 (restricting the disclosure of your address) if the application has been made in advance and the exemption granted. This is also true of People with Significant Control claiming exemption under Section 790. Unfortunately, many officers select this option who have not been granted the exemption. Further information can be found here.
A comprehensive guide to incorporation can be found on Companies House website, or alternatively feel free to call Qdos Accounting on 01162437868 or visit www.qdosaccounting.com for more information.