A Guide to Ltd Company Registration
Thinking about registering as an Ltd company? This guide tells you how to do it, from company registration specialists Blue Sky Formations.
Launching and running your own company is no small challenge, but its rewards can be huge. A 2019 survey from SME Loans found that 64 percent of the UK workforce wants to set up their own business.
So, what are some of the key things to know before starting your own business? It certainly pays to think ahead about your aspirations. Starting out by registering as a limited company has its benefits. While your entrepreneurial efforts may start small, if you’re successful there will come a point when you need to decide whether or not to register your business formally with Companies House. The good news is that this is a lot simpler than many people think – gone are the days of waiting weeks to get your business approved, complicated paperwork and the off-putting cost.
1. Is it Time to Register as a Limited Company?
The first thing you need to do is decide if this is the right moment to take that next step and become a limited company. There are a number of advantages, such as limited liability. A limited company is considered its own legal entity therefore you will not be personally liable for the debts of the business. You will find it also offers a bit of prestige, many corporations will only trade with registered companies. It is easy to apply for business loans and investments as an Ltd company.
There is however some legal requirements that you have to abide by as a Limited company including the initial company registration process at Companies House. You will be required to provide certain details about the company structure and ownership which will appear on the public record. This is for corporate transparency purposes.
2. What Details are Required for Ltd Company Registration?
If you do decide that this is the right option, you will need to do a number of things to formally register your company, including:
- Settling on a company name – which cannot be the same as another company name. You can use our handy free company name check tool
- Deciding where your official registered office address is going to be – this is the address to which the government will send official mail.
- Getting together details of directors and, if relevant, the company secretary. This includes a contact address known as a service address for them. We can provide a service address for you if you wish to keep their home address private.
- Deciding on the details of what your business does including at least one SIC code
- Consider information concerning share capital – if you are creating a company that is limited by shares, you must issue at least one share.
- Providing details of the initial shareholder(s)
- Detailing the persons of significant control (PSC). This is anyone (person or company) who has more than 25% of the shareholding and/or voting rights in the company.
3. Do you Require Special Memorandum and Articles of Association?
These provide the agreement and clauses that make up the new company. Including the rules which will govern how directors will run it for the benefit of the shareholders or members. In order to register, these need to be filed with Companies House as part of your incorporation application. If you use our company registration service we have a set of standard Mems and Arts that we submit for you. These are up to date and in accordance with Companies Act 2006. If you require special clauses, our company secretarial department can discuss that with you and draft special provisions. You might decide to do this if you after wanting a Special Purpose Vehicle, or SPV company. These are popular for property investment companies as your mortgage lender will require certain provisions in the company articles.
4. Decide on a Company Formation Agent
You might decide to register your company directly at Companies House and handle all the details yourself. Alternatively, you can use a specialist company formation agent. While registering directly can seem like a cost saving measure. It is advisable to use a professional service that provides experience and advice. This means you get things right first time and cover all the bases. It can be costly to change company details once registered. Our team have years of experience registering companies and check over every detail before they submit to companies house.
There are a lot of things to take into consideration when you are forming a limited company. If you don’t have any experience of drafting the memorandum and articles of association, for example, then it’s sensible to use someone who has the legal know-how you require. Companies House doesn’t do it for you. A formation agent will also be able to look at every aspect of your company registration and give you professional advice for your industry or sector.
The form for registering a company, the IN01, is quite a long document, 18 pages in all. It’s easy to get your submission wrong if you are not entirely clear about what you are doing. Of course, if you have a good amount of knowledge concerning the legal aspects of a company formation. You may be confident enough to complete and submit the form along with all the information required.
Companies House doesn’t provide you with all the information you need. Including, how to properly put together things like registers of directors and their details. Share allotments and capital allowances that you need to include in your application. A company formation service can help you do this and ensure you have the information submitted for your company.
4. Submit Your Company Registration to Companies House
Once you have submitted your application and paid the fee, Companies House will check your details and then, hopefully, confirm that your business has been registered. This can come through very quickly, in many cases on the same day, but you should realistically expect to wait 24-48 hours. Once you have your registration confirmed then the next step is to hold your first board meeting.
Choosing the Right Company Formation Agent
As with many business services coming online over the last few years, there’s a lot of competition out there. Ideally you want a company formation agent that goes above and beyond. Providing you with all the tools you need to help you comply with the law and minimise your compliance burden. Our service includes handy email reminders to let you know when certain things are due.
Blue Sky Formations offers competitive company registration solutions and ongoing company compliance services.
There’s no doubt, that using a good company formation agent can give you peace of mind. We will also ensure you get your limited company up and running with the minimum of fuss and without any mistakes.