Introduce to UK Limited Company Formations
Launching a new business in the UK is exciting, and once you’ve chosen to form a limited company as your legal business entity, you need to follow UK laws to hit the ground running.
As you may know, a limited company is a form of business that is legally separate from its owners and managers. In the UK, a limited company must get a registered office address in London or UK to be incorporated in this specific legal form.
A limited company is either ‘limited by shares’ or ‘limited by guarantee’ in the UK. A limited company is usually a for-profit business, whereas a limited by guarantee firm is a non-profit.
Read more to get a deep dive into the 5 steps to follow to register the UK Limited Company Formations
1. Purchase a Name to Incorporate your UK Limited Company
As in any new business, your firm’s name is vital to your success.
In the UK, the Companies House is where you will visit online to get all you need to form your limited company. The Companies House website offers registration for limited companies and has plenty of education available.
You must do your research before incorporating your new limited company or getting a registered office address in London. Be sure to come up with a creative name that you adore and then purchase that name’s rights for your new business.
You can click here to do a thorough search on your potential name on their search site. This website is a fantastic, easy-to-use, fast way to see if your dream business name is available.
Using the simple search tool, you can enter numerous options for your new company name.
Remember, for a limited company, you must always have the business name end in ‘Limited’ or ‘Ltd.’
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2.Create Articles of Association AKA Memorandum
Now that you’ve acquired your limited company legal name, it’s time to create your articles of association, also known as a memorandum. Before you can legally register your firm, you must have this vital document ready.
Your association or memorandum is a binding statement that all stockholders and guarantors, directors, and a company secretary, if appointed, must agree to and sign. The agreement consists of the rules about operating your limited company.
Luckily, the Companies House makes it easy for you to create your memorandum
as long as you apply online, with a simple, automatic memorandum.
If you don’t want to use the automatic memorandum template, you can fill in your own details upon registration.
Please note, you cannot change the memorandum once your limited company is registered.
3. Choose your Limited Company Directors
In a UK Limited Company Formations , you must choose directors. It is optional if you would also like to include a secretary.
Directors must agree to follow the rules in your limited companies’ articles of association. They must keep organized company records plus accounts and file the company tax return.
If any Directors benefit directly from the limited company, they must inform their fellow Directors immediately. They must also report any changes to the other Directors.
It is perfectly legal to hire employees in a limited company. However, Directors are always legally responsible for all record-keeping, accounts, tax payments, and performance information.
If you do not follow the Director’s rules, penalties include fines, legal prosecution, or your limited company’s disqualification.
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4. Pick Your Successors, Guarantors and Voting Rights to UK Limited Company Formations
Every limited company must have a minimum of one shareholder or guarantor, who can also be a Director. Choose one or more people to serve as successors or guarantors.
You will also need to decide who will have the most significant control over your limited company. Significant control applies to anyone with a twenty-five percent or more share of your firm.
People with Significant Control (PSC) control your firm and are sometimes called ‘‘beneficial owners’. Once you identify your PSC, you must include this information in your registration with Companies House. You can have one or more PSC in your limited company.
Click here to review a full list of how to identify your PSC and all the information you need to correctly organize this information. The Companies House also has a great video you view with information about your PSC.
5.Where to Register and Incorporate your UK Limited Company Formations
Once you have all your information ready, it’s time to register your UK limited company with Companies House.
To register, you must provide an official address for your limited company and a ‘SIC code,’ which identifies what your company does.
Your company address must be a physical address in the UK or in the same country, as in Scotland, for example, where you must have an address there to register.
Your limited company address is available for the public to view on the online register.
However, if you would like to keep your address private, you may use a PO Box or appoint a secretarial agent to give you a physical address.
To register your UK limited company, click here. The cost is £12 via debit, credit card, or a Paypal account. This process takes about 24 hours.
Keep our 5 steps to follow to register a UK Limited Company Formations , and remember to follow the simple steps that take you from naming your new firm, creating articles of association, choosing your Directors, picking your successors, and registering your limited company.