UK Limited Company

UK Limited Company 

A limited company is a company:

• limited by shares or
• limited by guarantee.

What is Limited by shares

This means the company:

• companies are usually businesses that make a profit
• is legally separate from the people who run it
• has separate finances from your personal ones
• has shares and shareholders
• can keep any profits it makes after paying tax

What is Limited by guarantee

This means the company:

• companies are usually ‘not for profit’.
• is legally separate from the people who run it
• has separate finances from your personal ones
• has guarantors and a ‘guaranteed amount’
• invests profits it makes back into the company

How to set up UK Limited Company

1^st step. Explore if a Limited Company is a right for your business.

2^nd step. You must choose a name for your business if you’re setting up a private limited company.

There is the riles for company names. You also need to be sure if the name you want is available. It is wise to check existing trademarks as well.

3^rd step. Appoint directors and company secretary. You must appoint a director but you do not have to appoint a company secretary. Director of a limited company must follow the company’s rules, shown in its Articles of association and Company Act.

4st step. Decide who the shareholders or guarantors are.

• A company limited by shares must have at least one shareholder. There’s no maximum number of shareholders.
• Companies limited by guarantee must have at least one guarantor. There’s no maximum number of shareholders.

5^th step. Identify people with significant control (PSC) over the limited company.

A person with significant control (PSC) is someone who owns or controls your company. Their details must be record on company’s PSC register, when the company is setting up (incorporate).

6^th step. Prepare documents:

• Articles of Association – written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary.
• Memorandum of Association –  a legal statement signed by all initial shareholders or guarantors agreeing to form the company.
• Consent to act as director.
• First meeting of shareholders.
• Resolutions.
• Shares.

7^th step. Learn what company record need to be submitted and kept.

You must keep:

• records about the company itself
• financial and accounting records

HM Revenue and Customs (HMRC) may check your records.

Records must be kept for 6 years from the end of the last company financial year they relate to, or longer.

^8th step. Decide what address you can use as company’s registered office official address.

This is where all written communication must be sent.

The address must be:

• a physical address in the UK
• in the same country your company is registered in, for example a company registered in Scotland must have a registered office address in Scotland

^9th step. Choose a SIC code

– this identifies what your company does. Companies House uses a condensed version of the full list of codes available from the Office of National Statistics (ONS).

10^th step. Register Limited company with Companies House.

11^th step. Register with HMRC.

• Register for Corporation Tax.
• Register forPAYE to tell HMRC you’re employing staff (including yourself if you’re the only director)

Our team will be happy to help you with company registration in the UK, Scotland, Ireland and provide you with more detailed information, you can to contact us at [email protected]