Companies Act 2006 Part 2: forming a company

This article, the second in our series on the Companies Act 2006, will focus on how to form a company, through to the essential documentation to ensure a new company complies with the legal framework as set out in CA 2006 Part 2

When forming a company individuals have the choice of two options: starting from scratch and register a new company or to buy a company ‘off the shelf’ and use an existing but currently unused company and change the name and details.

Starting from scratch

A body corporate (i.e. a company) can be created by Royal Charter; act of Parliament (e.g. nationalised industries) or registration.

Registration is the process of forming a company from scratch. Section 7 states that a company is formed by one or more persons:

(a) subscribing their names to a memorandum of association; and

(b) complying with the requirements of this Act as to registration.

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