You have reviewed your options on the trading structure for your business and have decided to progress with a limited company. How do you set up a limited company? The key steps are:
Decide on a company name (that is unique)
For a private limited company it is required to have at least one Director who can also be a shareholder in the company. Private limited companies no longer have to appoint a company secretary. Directors of private limited companies are responsible for notifying Companies House of changes in the structure and management of the company.
A limited company will have share capital and the liability of each member is limited to their share capital. The share capital can be structured in different ways and it is worthwhile obtaining advice from a professional advisor (qualified accountant) on how to structure the share capital.
A limited company must have a registered office. This could be the address of your office, home or accountant.
Once you have the information in (i) to (iv) above you are then in a position to set up the limited company. This can be approached in two ways:
(i) Use a company formation agent or accountant (cost £100 – £125)
(ii) Use the Companies Office web incorporation service (cost £10)
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