8 Steps to Forming Your Own Limited Company
Registering your own limited company in the UK need not be a daunting task. Make the process even easier by preparing the required information in advance. Follow these steps and you will have the information you need to set up a limited company.
Choose a Company Name
You must choose a unique company name. It cannot be too similar, or the same as, an active company recorded at Companies House. Decide if you want to include LIMITED or LTD in your registered name, you can use either post formation.
All UK companies have a ‘registered office address’. This is the legal address recorded by Companies House on the public register. Official letters, reminders and notices from Companies House and HMRC are sent to the registered office. This cannot be a PO box.
Need a Registered Office?
Add a Registered Office Address to your company formation.
Company directors are responsible for running the company. You will need to appoint at least one company director that is a person (not another company) who is a least 16 years old. They can be resident anywhere in the world. You will need to know their full name, date of birth, nationality, occupation, home address and service address (if using one).
The company secretary is an administrative role responsible for filing company documents. It is no longer a legal requirement for UK companies to appoint a secretary. In the absence of a company secretary, the responsibilities are simply passed to the company directors.
Create a Share Class
UK companies must have at least one share class. It is possible to create multiple share classes if required. The value of shares can range from £0.01 upwards and may be created in different currencies. Different share classes can have different share rights. Most companies are formed with standard ‘Ordinary’ shares with a value of £1.00.
The shareholders own the company. Once the share class has been created at least one share should be issued to one person (or another company). In many UK companies the company directors are also the shareholders. However, a company can also issue shares to shareholders that are not directors. You can issue as many shares as you wish. It is common for companies owned by one person to simply have a single £1.00 share issued.
Persons of Significant Control
As of the 6th April 2016 it is now a requirement for UK companies to keep a record of ‘People with Significant Control’ (PSC) within the company.
Confirming the PSCs is required when incorporating a new company.
Submit the Formation
Almost there! The last step we recommend is checking the information that has been entered. Check for spelling mistakes or missing data. Are the addresses and dates of birth correct? Many mistakes can be remedied post-formation if required but it is recommended to enter the correct details from the start. If we are forming your company our expert team will be happy to look over the data with you before you submit the application, just give us a call. Once you are happy with the information entered you can submit your new company formation. Your company should then be formed in approximately 6 working hours.