Launching a new limited company in the UK involves several important steps and legal requirements. While it may seem daunting, thousands of limited companies are formed each year by savvy entrepreneurs looking to build businesses. With good planning and professional guidance, you can smoothly handle the process of registering and establishing your company. This article will walk through the key steps needed to properly set up a limited liability company under UK law.
Choosing a Company Name
When launching a limited company in the UK, one of the first steps is choosing a suitable company name. You’ll need to check that your desired name is available and acceptable by doing a company name search on the Companies House website. The name must end in ‘Limited’ or ‘Ltd’ and can’t be offensive or too similar to an existing name.
Selecting Directors and Shareholders
Every UK limited company must have at least one director and one shareholder. The director is responsible for running the company, and shareholders own a portion of the company. You can have a single person fill both roles or appoint different people. Requirements are that directors and shareholders must be 16 or older and not be disqualified from serving.
As you form the company, you’ll need to provide details on all directors and shareholders. Those individuals must consent to act.
Choosing a Registered Office Address
Your company needs an official registered office address in the UK. This doesn’t have to be your trading address or headquarters. Many people use the address of their accountant in Bristol as the registered office. This can provide privacy if you register your residential address as a service address instead.
Registering with Companies House and HMRC
To legally create the company, you must register with Companies House. This can be done online by completing all the required company details. You’ll receive a certificate of incorporation if approved.
You must also register with HMRC for corporation tax and to receive a UTR number for filing taxes. This is done after incorporating, often with help from an accountancy firm in Bristol.
Creating a Memorandum and Articles of Association
These documents set out your company constitution, covering topics like shares, director authority, and decision-making powers. Templates are available, which you can modify to suit your needs. Legal advice may be prudent to ensure good governance.
Issuing Shares
Share capital represents the funds invested by shareholders. To meet the trading requirement for a limited company, you’ll need to issue shares with a nominal value of at least £50,000. Typically, shares have a nominal value of £1 each. You can start with an allotted number, like 50,000 or 100,000 shares.
Appoint a Company Secretary
This officer can be a director, shareholder, or hired professional. Duties include ensuring statutory filings are done properly. Many solopreneurs act as their own secretaries, but larger companies may outsource this role.
Set Up Business Bank Accounts
You should open new business bank accounts when launching a company, separate from your personal accounts. Shop around to find an account with suitable features and perks for your company.
Register for Taxes
Contact HMRC to register for corporation tax, PAYE, and VAT if applicable. You’ll need your company registration number. Bristol accountancy firms can help manage tax registrations and filing.
Get Accounting Software
Proper accounting practices are a legal requirement. Accounting software helps track finances, invoices, reporting, and more. Popular options like Xero or QuickBooks offer different pricing tiers and features.
Hire an Accountant
Consider partnering with an accounting firm in Bristol to assist with financial oversight, bookkeeping, taxes, and advising on best practices. This provides helpful experience and ensures legal compliance.
By following these key steps, you can successfully launch and register a new limited company in the UK. Don’t hesitate to enlist professional help to guide you through the process.