Setting up a Limited Company

If you’ve gone through your options and decided that setting up as a Limited Company is the right path for you, then below is your step-by-step guide to setting up properly.

• Choose a name - There are lots of things to consider when choosing a name for your business, but as far as your requirements for company registration goes, there are three things to do:

  • Check the rules for company names. These can be found on the HMRC website and cover everything you need to know.

  • Check if the company name you want is available

  • Check existing trademarks so that there are no future conflicts or issues.

• Choose directors and a company secretary.

  • You must appoint at least one director, which would normally be you, but you do not need to appoint a secretary.

• Decide who the shareholders are.

  • You need at least one shareholder, and this would normally be a director.

• Identify people with significant control.

  • If there are any other people with significant control (PSC) over your company then you need to identify them too. There are many things that can make a PSC but an example is someone with more than 25% of the shares.

• Prepare documents agreeing how to run your company.

  • You need to prepare two documents to start:

    • Memorandum of Association

    • Articles of Association

• Check what records you must keep. You will have to keep records about the company itself and also financial and accounting records.

• Register your company with Companies House.

  • You will need to register an office address

  • You will need to select and appropriate SIC code to identify what your company does.

• Manage your Corporation Tax.

  • You should add Corporation Tax services to your account when you start doing business. You can do this on the Government Gateway website.