Starting a limited company is the beginning of an exciting journey into entrepreneurship. We can help you get there quicker with our bespoke company set-up service.
We can reduce the stress of working out the best way of setting up your limited company by working with Companies House on your behalf.
The Future Strategy team will deal with the company’s incorporation and help you look at potentially available names for your company.
We can help you decide on matters such as company shares, directors, and structure and draw up the company’s important documents such as the Memorandum of Association and Articles of Association.
That means you can get on with the more pressing business of growing your new company – without worrying if you’ve met all your legal obligations.
We’ll provide you with step-by-step advice and guidance regarding your responsibilities as a company owner and director.
If you would like to learn more about how we can quickly and painlessly set up your business as a limited company, get in touch with the Future Strategy team today.
How long does it take to set up a limited company?
The process can usually be completed in a day quite easily, depending on the workload at Companies House.
Before submitting your information, we will conduct a review to give it the best chance of being approved quickly and your business being added to the Companies House register.
How will I know when my limited company has been formed?
As soon as Companies House incorporates your company, we will alert you, together with copies of your company documents and a note of your Companies House Authentication Code.
Documents include the certificate of incorporation, memorandum, and articles of association, and share certificate(s). Unfortunately, Companies House does not provide progress updates during the registration process.
What company type or structure should I choose?
Most companies set up in the UK are companies limited by shares – also known as private limited companies. They conduct normal commercial business with the purpose of the owners (shareholders) making a profit while also providing limited liability protection should the company hit financial problems.
Alternatively, if you wish to start a non-profit organisation, you will need to form a company limited by guarantee. Another structure is the Limited Liability Partnership (LLP), used by professionals who require limited liability but are not allowed to trade as a limited company by their professional governing body.
What is a limited company?
A limited company is a legal structure for your business. While there is no legal distinction between a sole trader and their business, a limited company has a legal identity that is separate from its directors and shareholders.
This is useful for businesses that take on a considerable amount of risk. However, setting up a limited company also comes with additional paperwork and responsibilities, making running one very time-consuming.
Benefits of setting up a limited company
- Separate legal identity – this means the company is liable when things go wrong, not you personally.
- It’s more professional – it can also make it easier to secure suppliers, investment, and eventually sell the business.
- Tax efficiency – you pay corporation tax through your business and pay yourself in salary and dividends.
Should I set up a limited company?
Sole trader status is the most common legal structure for UK businesses. This is because setting up as a sole trader comes with relatively few legal responsibilities, which suits businesses that want to get started quickly.
Consider the type of business you want to set up – and the risks involved. Again, it is a good idea at this stage to get professional advice, particularly if you’re not sure.
Choosing a name for my limited company
No two limited companies are permitted to share the same name, so you’ll need to come up with an original name for your business.
Companies House (the government agency you register your company with) does not allow anything offensive. It also has a list of sensitive words and phrases you cannot use.
It’s sensible to check if your name is available as a website/email domain name. If the exact phrase then a variation or version with a hyphen may work. Use a domain checker website to see what’s available – it’s usually worth securing this sooner rather than later.
Directors of my limited company
There’s no limit on the number of directors a company can appoint but a new company usually starts with one.
A limited company also needs at least one shareholder. Shareholders can also be directors.
When you register your limited company, you will need to give details about the shares and how they have been issued. You should state:
- The number of shares and their total value (your company’s ‘share capital’).
- The names and addresses of your shareholders.
It’s common for new small limited companies to issue 100 £1 shares and pay £100 into the company bank account when incorporating.
This can be divided if you have more shareholders. For example, if you have two directors, you can issue 100 £1 shares, with both shareholders paying £50 into the company bank account.
The company is divided equally between these two shareholders, but you could also split it unevenly if you want to.
What is a person with significant control?
Identify the people with significant control (PSC) within your business and inform Companies House about them on your company’s PSC register.
Companies House states that PSCs are likely to be people who have:
- More than 25 per cent of shares in the company.
- More than 25 per cent of voting rights in the company.
- The right to appoint or remove the majority of the board of directors.
If you need help negotiating how to start a limited company, speak to our team today about how we can get your business off to a hassle-free start.
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