• Startups
  • December 07, 2016

Company Registration in England and Scotland

By Lawbite Team

Talk to a Lawyer Free Legal Help
article
 From time to time we are asked whether the law in Scotland for registering a company is different than the law in England. The short answer is ‘not really’, though after a company is formed there are important differences which govern how it operates. 
Registration
 The regulatory framework for companies in Scotland is the same as in the UK. Private companies are governed by the Companies Act 2006 (there is no separate Scottish Company law regime) 
  •  There is a single UK-wide system of company registration and a single register of companies. However, there are separate registrars in Scotland, Northern Ireland, and England and Wales.
  •  In order to register a limited company in Scotland it must be incorporated at Companies House in Edinburgh.
If you want to get down to the real detail; 
  • To form a Scottish company, the following must be sent to the Registrar at Companies House in Edinburgh (Scotland):
  •  Form IN01
  • proposed company name;
  • type of company;
  • registered office address (a Scottish-registered company must have its registered office in Scotland);
  • whether prescribed model articles are adopted;
  • names of company officers;
  • a statement of share capital and initial shareholdings; and
  • a statement of compliance.
There is no material difference with incorporating a limited liability company in England. Post-Registration Once a company is formed, however, there are material differences in the laws which apply to its operation. For example; 
  • Different procedural rules apply to the insolvency regime in Scotland - there is no ‘Official Receiver’ in Scotland, and some different rules apply, particularly in the area of individual bankruptcy’
  • Contract law – in Scotland, the concept of ‘consideration’ does not apply, so that contracts can be binding on a promisor even if they get nothing in return from the promise. In the UK a contract without ‘consideration’ is generally not properly formed
  • The system of taxation and business rates is different
  • Employment contract differences. For example, Scottish employees can get the benefit of an extra day of Bank Holiday (St Andrews Day), though there is less uniformity than in England about workers automatically being given Bank Holidays off. Employment Tribunal rules on evidence also differ.
  • Civil court rules and different statute of limitations. For example, in Scotland contract claims are ‘prescribed’ or ‘limited’ after 5 years whereas in England it's generally 6 years. In England, the County Court system hears smaller cases with a hierarchy which then extends through the High Court, the Court of Appeal and then the Supreme Court.
  • Property law differences. There is no equivalent of the Landlord and Tenant Act which applies in England, with disputes being resolved in Scotland primarily by reference to the lease itself. Ordinarily there is no automatic right to renew in commercial tenancies (unlike in England)
On top of that, there are other more obscure local hazards to watch out for. (It is illegal to be drunk and in charge of a cow in Scotland under the Licensing Act of 1872). So, there are some differences in the laws that apply to companies North of the Border. But if the Scots get around to holding a Referendum again, and decide to leave the UK, then the laws are already sufficiently similar that a wholesale disentanglement will not be required (unlike Brexit!) Clive Rich is the founder and Chairman of LawBite. LawBite is an online legal service taking SME’s all the way from ‘idea’ to ‘ideal’ as they start, grow and succeed. Its fully regulated law firm delivers fast, expert advice at half the price of a traditional firm of lawyers. Its 24/7 Platform provides access to the lawyers, easy to understand documents, and easy to use software tools all delivered with a human touch. For further business legal advice, you can submit an enquiry via our online legal advice portal or call us today for FREE LEGAL CONSULTATION on 0207 148 1066.   

In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.

Related Articles

Read more of our latest blog posts, featuring all the latest legal news, analysis and opinion from our expert lawyers.

blog image
  • By Lawbite Team
  • March 16, 2021
10 Steps every Start Up must take to avoid Legal 'Bear Traps'

Every start-up business needs the law. Unfortunately, many cut corners or worse still, ignore the legal side of their business all together. Here's...


Startups
blog image
  • By Lawbite Team
  • January 27, 2020
Ensuring your business meets customer demand

The most common concerns that are heard from business owners are generally; improving their product or service, driving traffic to their business a...


Startups
blog image
  • By Lawbite Team
  • December 05, 2019
The LawBite App is here!

Technology's disruption of traditional service sectors continues at speed, increasing the need for service sectors to adapt and respond with agilit...


Technology, Startups, In The News

LawBite can help you

LawBite is on a mission to provide business legal advice that is easier to access, clearer to understand and much cheaper. Our on-line legal advice platform can quickly connect you with expert business legal advice. Our friendly, highly qualified business lawyers, solicitors and mediators will give you the guidance and reassurance that comes from customised legal advice for small and medium sized business.

Whether you are bringing or defending a legal claim, outsourcing work, want a business contract review to ward off disagreements, talk to an expert trademark lawyer, resolve a contractual dispute with methods like mediation and arbitration, or getting your new company set up and on the right footing with a robust shareholder agreement and GDPR standards, we can help you succeed.

defend a claim

Talk to a Lawyer

Book a Call
defend a claim

Essentials Plan