How to set up a Limited Company
There are various methods of setting up a business structure and each have their own advantages and disadvantages.
Setting up a Limited Company is a popular way of trading; mainly due to the tax advantages available to the shareholders.
Limited company’s are relatively simple to form, with the main steps listed below:
Choose the type of Limited Company you require
There are two types:
Private Limited Companies (LTDs)
Public Limited Companies (PLCs)
And also, in 99% of cases, the private limited company will be chosen.
Complete the incorporation process
You can simply go online and form your limited company yourself (or ask your accountant to complete the process). You have to supply certain personal details to Companies House such as director / shareholder details, registered address etc. Companies House will generally have formed your limited company within a couple of hours.
The following information / documents must be prepared and forwarded to Companies House in order to complete the incorporation process.
- Memorandum of Association
- Articles of Association
- Director’s names / addresses
- Registered limited company address
Ongoing Legal requirements
Also, as a limited company director you have certain legal responsibilities:
- Completing and filing Annual accounts and Annual Returns with Companies House every year
- HMRC must also receive the company’s annual accounts every year
- Completing and paying an annual HMRC Corporation Tax return (CT600) within nine months and one day of the limited company year end, every year.
How we can help form your Limited Company
In addition, you need to decide which is the best structure for your business to fit in with your objectives. We can help you to plan an appropriate course of action, so don’t hesitate to contact us.