Setting up Limited Company in the UK can be daunting, so we have put together a checklist to help you through the process.
A limited company is a private company whose owners are legally responsible for its debts only to the extent of the money they invested, so has the benefit of limited liability.
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Companies must be registered at Companies House
The whole process of registering and setting up limited company can be done by yourself or with the help of an accountant.
So now it’s time to submit all your documents to officially set up a limited company and complete your incorporation process and make yourself aware of your tax responsibilities Limited Company.
Setting Up Limited Company Checklist
Registering and setting up a limited company
Type of Limited Company
Most commonly used is private limited company LTD
- Private Limited Companies (LTD.): When an owner liability is limited to their shares.
- Private Limited Company by Guarantee (LBG): A company limited by guarantee has no shares or shareholders but is owned by guarantors who agree to pay a set amount of money towards any company debts.
- Public Limited Companies (PLCs) : Must have a minimum share capital of £50,000, at least two shareholders, two directors and a qualified company secretary.
- Limited Liability Partnership (LLP): Formal partnership between at least two business partners which provides limited liability, which means they aren’t fully responsible for the business’ debts or liabilities.
- Private Unlimited Company: Very Rare.Doesn’t have to submit an annual return or any financial statements compared to other limited companies.
Business Name
The name you choose for your company must be completely unique. You can’t select a name that might be considered the ‘same as’ or ‘too like’ an existing company.
You can check names on companies house website company name availability.
Official Registration Setup
You will be required to supply personal details to help Companies House identify you as a director.
Directors
Referred to as ‘officers’ you can have just one director or as many as you want. Directors will manage the day-to-day activities and finances and ensure all statutory filing obligations are met.
Company Secretary
The company secretaries main role is to take care of general communications with Companies House, HMRC and general administrative tasks.
It is now no longer obliged to appoint a company secretary.
Shareholders or Guarantors
The owners allocation of share capital
Guarantors who agree to pay money towards company debt
Share Allocation
You can just have one shareholder or as many shareholders as you wish. Shareholders are entitled to receive a portion of profits in relation to the number and value of their shares.
Registered Address
Where official communications are sent and it must be a physical address in the same country.
Bank Account
Money does not belong to you and must be separated from your own finance.
Register for VAT
Your company must register for VAT if your takings are more than £83,000 a year.
Inform HMRC
Register for Corporation TaxA Company requires a 10-digit Unique Taxpayer Reference ( UTR ) this is posted to your company address.
You must tell HMRC within 3 months of starting your tax accounting period if your limited company is within the charge of Corporation Tax and active.
