How To Register A Limited Company
If you are looking for information on how to register a limited company, this comprehensive step- to- step guide provides all the key steps you need to take.
Choosing the Right Business Structure
One of the first decisions you’ll make is choosing the right business structure. The main options are:
- Sole Trader: Easy to set up but you are personally liable for all debts and taxes.
- Limited Company: Offers liability protection and tax advantages but involves more administration.
- Partnership: Share profits and losses with partners but risk personal assets if debts aren’t settled.
Consider which model best aligns with your business plans and risk tolerance.
Picking a Distinct Company Name
Your company name needs to be unique and you can use the Company Name Availability Checker to validate your chosen name.
Registering with Companies House
As the official registrar, Companies House maintains records of all UK companies. You can register online, by post or using a formation agent. Be prepared to provide company details like:
Company name
- Registered address
- Director and shareholder information
- SIC code
Appointing Directors and Shareholders
Directors manage the company and ensure legal compliance. Shareholders own a portion of the company – you need at least one. If a shareholder owns over 25%, they must be listed as a Person with Significant Control.
Preparing Required Documents
Have key documents like the memorandum and articles of association ready. These outline operating procedures and require shareholder signatures.
Obtaining a SIC Code
A SIC code categorises your company’s industry activity. Apply to Companies House for a code, which helps with promotion and other business activities. Update it if your business activities change.
Opening a Business Bank Account
A separate account keeps your business and personal finances in order. Have evidencing documents ready as banks may require things like proof of identity and address.
Registering for Taxes
Legally, you must register for relevant taxes within time limits – for Corporation Tax, it’s within 3 months of starting operations. HM Revenue and Customs handles registrations.
Fulfilling Post-Registration Duties
Stay on top of finances, file documents on time, and hold Annual General Meetings if shareholders require them. This keeps you legally compliant.
Please feel free to reach out to Ben Allman on ben.allman@ballardsllp.com or call 01905 794 504 if you need guidance with any step.
Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.
