Coalition Government - Cutting the Red Tape around Company Formation

July 28, 2010 - PRLog -- Whilst most of the changes being introduced by the new government relate to the rather gloomy budget deficit problems, one policy that is a little more positive is the idea of making it easier to start a business. Company formations have already significantly changed over the years fuelled by the need for a company to be formed with speed, efficiency and ease at a reasonable price. So the question arises, after a recent announcement from the coalition government that promised to cut red tape around starting a business, is there really a need for further changes in this industry?

During the past decade major advances have come through to ease the processes involved to incorporate a company with one of the major changes being the move to online services.  This has allowed companies to be formed quickly and with minimal effort, however this has made it more important to ensure that companies are formed for legitimate commercial activities and not for criminal purposes.

Andrew Millet, Director of Wisteria Formations explains “The advent of online filing no doubt speeded up the progress of forming a company significantly.  In addition, processes put in place with Companies House have continued to make it faster to incorporate in the UK.  Wisteria Formations has a direct gateway with Companies House which has speeded up the process even futher.  We have even seen formations completed in not much more than 15 minutes.  It is therefore very difficult to see how the new government hope to speed this up.  Reducing the amount of information required may be a way to do this, although we would be very concerned on the impact this may have on the number of companies set up for criminal purposes.”  

Company formation agents are now starting to become more user friendly as well. An example of this is with Wisteria Formations; by using this service forming a company takes just 10 easy steps that incorporates a video guide with each step to help users if there are any problems as well as dedicated personal at just a phone call away.

When forming a company three documents are required including the memorandum of association, the articles of association and Form IN01. This is where the question comes in of what more can the government do to make a significant impact to the process.   Furthermore, this is hard to understand when it is only recently that the legislation around these documents has been revised with alterations that came into affect on the 1st of October last year in the relevant provisions of the new Companies Act. This, briefly speaking, limited the memorandum to a ‘historical snap shot’ of the company on formations giving basic information about subscribers with the company’s rights, powers and liabilities being covered in the articles instead translating into easier administration concerning the documents thus speeding up the processes involved.  

When indulging deeper into the particular issue of cutting red tape no more detail is explained other than statements of trying to reduce the amount of documentation involved and a revision of the current legislation before considering any further implementations which with the recent changes already recently come into affect might not provide us with too much.

Company formation agents therefore wait to see whether this is just political rhetoric, or if not, how the new government intend to achieve this change.

For more information in relation to company formations and professional services from Wisteria Formations, please visit http://www.wisteriaformations.co.uk

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About Wisteria Formations:

Wisteria formations is a leading online company formation agent, backed by Wisteria Chartered Accountants. Wisteria Formations provides fast and simple company formations for only £24.99. With everything set up online, you could have a limited company set up within 24 hours. In addition, Wisteria Formations offers registered office and professional company secretarial services. Please note that Wisteria Formations does comply with the Money Laundering Regulations and therefore clients are asked to provide the relevant evidence prior to submission to Companies House.
www.wisteriaformations.co.uk