How to set up a Limited Company
Posted on 23rd September 2021 at 12:35
1. Check whether the limited company is the correct structure for you and your business. It cannot be stressed enough to take advice before starting a company to check if this will be the most beneficial business structure; you may want to consider sole trader and partnership as well.
2. Choose a company name. You need to ensure that the name you choose is unique and isn’t too similar to another company’s name or trade mark. Your name must usually end in either ‘Limited’ or ‘Ltd’.
3. Appoint the company directors, these are people who run the business, there must be at least one director. Directors’ responsibilities include keeping the company’s books and records, filing the company’s accounts and tax returns.
4. Record the shareholders; these are the people that own shares in the company. There must be at least one shareholder who buys one/ many shares in the company.
5. Choose the type of shareholdings – either having just one group of ordinary shares or alphabet shares which provides flexibility of different shareholder groups.
6. Register your new company on Companies House; you can do this yourself or there are many company formation agents who can do this for you, prices range depending on the level of input required by you.
7. Register the company with HMRC for corporation tax. https://www.gov.uk/limited-company-formation/set-up-your-company-for-corporation-tax
8. Open a business bank account in the company name.
9. Choose your accounting system for recording your sales and costs.
10. Appoint an agent to look after your year-end accounts and tax affairs which could include corporation tax; VAT and payroll.
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