Whether you’re just setting up a new venture or you’ve been trading under your own steam for a while and looking now to take the next step, either way it’s important to consider your move to becoming a Limited Company carefully.
Before taking the decision it’s best to take professional advice and here at Langricks we’re ready to help.
Essentially there are two types of limited company:
- Private Limited Companies (LTD)
- Public Limited Companies (PLC)
In general, the self-employed or new start-ups will opt for a Private Limited Company. PLCs must have a minimum share capital of £50,000, at least two shareholders, two directors and a qualified company secretary which is not necessary for a typical small business or new start-up.
The basic 3 steps
- Choose a name for your Company (including its web address)
Choosing a name can be fun as very often a new business is either heart-felt or already hard worked. It may therefore come loaded with passion for the trade you intend to follow.
In the same way that the url for your website has to be unique so too does your Ltd Company name. It may well be relevant with this in mind to check the availability of your web address and see if it can match (or closely match) your chosen company name – all at the same time.
If your company name is abstract to the products or services you sell, for example, you intend to trade as ‘AKA Ltd’ because it’s the 3 initials of your children and you’ll be selling railway sleepers then in addition to forming the limited company it would be advised to not only see if www.aka.co.uk is available but also to see if www.railwaysleepersforsale.co.uk is also available. The two can be connected and will help with your on-line presence.
- Forming a limited company
In order to do this, you simply have to supply certain personal details to help Companies House identify you as a company director. Once done, you’ll be ‘formed’ in a few hours. Even easier still; if you’ve established that the url for your website is available (domain name or names as above) then registering this or these and taking ownership of it or them is relatively inexpensive and will allow you to utilise it for professional, company relevant email addresses.
- Complete the incorporation process
Companies House is the body that is responsible for all limited company registrations in the UK. The following documents must be completed and returned to Companies House in order to complete the incorporation process. Langricks can complete these on your behalf:
- Memorandum of Association – limited company name, location, business type
- Form 10 – director’s names, addresses and registered limited company address.
- Form 12 – states the limited company complies with the terms and conditions of the Companies Act
- Articles of Association – outlines director’s powers, shareholder rights etc.
In basic terms these 3 steps will get you set up. In addition and before you can trade you will need the following also:
- A business bank account in the name of your new company.
- Some insurance that will cover third party liabilities.
Overall, it’s a pain free process with which Langricks can assist throughout.