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This is a freeview 'At a glance' guide to where to start with Incorporation.

This section of the site provides guidance and checklists to assist in forming a new company together with the incorporation of an existing business.

At a glance

Incorporation is the process of forming a new company.

A new business may commence trading via a new company, alternatively, an existing business may choose to become a company.

For new businesses, see How to start a Business.

This section is for existing businesses thinking about incorporation.

Planning points/pitfalls of incorporation

See Incorporating an existing business

What's new?

April 2023

April 2022

Useful guides on this topic

Sole trader v. limited company: tax differences & savings (2022/23)
Is it better from both a tax and legal point of view to run your business as a sole trader or as a company? Are there tax advantages in running a business as a company? What legal protections apply?

Incorporating an existing business
This practical tax guide takes you through the whole process and includes worked examples to illustrate the Capital Gains Tax reliefs that are available to reduce or defer tax payable when a business is sold or transferred to a company.

Incorporation checklist
This is a step-by-step guide through the process of incorporation of an existing business.

Sale of occupational income; anti-avoidance
What are the tax effects of the anti-avoidance sale of occupational income provisions?  How do you tax a capital sum received on the sale of an individual's earnings?

Goodwill & incorporation: Tax issues
What are the tax issues in respect of intangible property (IP) assets, such as goodwill, on incorporation? What tax reliefs apply if you buy and sell goodwill and IP? What are the valuation and clearance procedures?

Goodwill: Valuation
What valuation methods are suitable for valuing a business? What are the issues with goodwill and other intangibles? What does HMRC suggest? What do the courts think?

Goodwill: Trade-related properties
What are the tax and accounting issues when valuing goodwill in connection with the purchase or sale of a trade-related property? What are HMRC's views? What does case law tell us?

Cessation followed by incorporation
This guide explains the tax and accounting treatment of a sole trader or partnership business in its final period before incorporation.

An index to Capital Gains Tax reliefs 
There are numerous Capital Gains Tax (CGT) reliefs in the UK: when do they apply and what are the conditions for relief?

Registering for VAT
When should a business register for and charge VAT? What are the VAT registration limits and VAT rules after Brexit? What penalties might HMRC issue for late notification of registration?

Transfer of a Going Concern (TOGC)
What is a TOGC? What conditions must be met? What are the consequences of a TOGC? What case law is there?

 

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