There are many advantages of setting up a limited company including limited liability for shareholders, easy transfer of ownership by selling shares, and shareholders who can be employed by the company. Taxation rates can also be favourable.
When you’ve decided that this is the right structure for you and your business, you’ll need to know what to do next. For example, what legal documents are needed to set up as a limited company? Read on to find out more…
Opening your company
Limited Company registration can often be done within 24 hours if you have access to a computer by following these simple guidelines. Bear in mind that Companies House is the registrar of companies for the UK and all requests go via them for approval. And you’ll need to register a limited company with HMRC for Corporation tax.
Firstly, make a comprehensive list of the information you’ll be required to provide:
- Your proposed company name
- Registered office address
- Company director details
- Shareholder details
- Share capital information relevant to each class of shares
- Any persons with significant control details
Next, you’ll need to enter these details on the Companies House webpage.
Printing out your legal documents
Legal company registration is accompanied by legal documents that need to be printed out and kept for your records. They provide the foundations for your company and are explained below:
Memorandum of Association
This document contains the details of the initial shareholders who are forming the company. It also states the company’s official name. You can change the shareholders at any time and add new shareholders when needed.
Certificate of Incorporation
These certificates are issued by Companies House as soon as your company is successfully registered. Information provided on this document includes the date of incorporation and your personal company registration number. This is evidence that your company has been officially registered and may be shown on demand to third parties such as banks.
The date on the certificate will also determine the date of your company’s first yearly tax return which is typically 12 months from the date of incorporation.
Articles of Association
Definitions of the rules and regulations governing the administration of your company are set out within this document. Dividends, powers of company officers, and how board meetings should be carried out are covered. It’s a legal duty to have this document as it acts as a rule book that binds all members.
This is the form that allows amendments to be made to any articles and also serves as a record of names and addresses of all directors alongside the company’s registered office.
Once your company has been registered share certificates should be allocated to shareholders within two months. This certifies that on the issued date the named person is the registered owner of shares in your company.
Every company is expected to preserve statutory registers as shown below:
- Register of members
- Director’s register
- Register of Director’s home addresses
- Secretaries’ registers
- Charges’ registers
Getting professional help
For hassle-free support and advice with registering company formations limited speak to an expert from reputable accountants in London.