How to Register a Limited Company in the UK
Decide on whether you want to use the services of a "Formation Agent"., Decide the desired legal structure of your future company., Make sure you understand the consequences and requirements of the legal structure you chose., Prepare the basic...
Step-by-Step Guide
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Step 1: Decide on whether you want to use the services of a "Formation Agent".
Formation agents are mostly capable of incorporating any type of company.
They can also provide you with specialist advice and legal consultancy.
They are usually professional and seasoned in the field.
On the other side, you should be able to save the extra money for their fees and the costs of any advice you get from them.
If you choose this option, you can find a list of formation agents at the companies house website referenced on the sources and citations section. , There are 7 types of limited companies in the UK:
Private-Limited Company.
A private limited company may be limited by shares or by guarantee.
Some points about private limited companies are:
Appointing a company secretary is not a must.
However, should one be appointed, the Companies House must be notified.
They must file their accounts annually with the Companies House.
They must send an annual return to the Companies House.
For a company limited by shares, shareholders are not responsible for the company's debts unless they have given guarantees.
However, they may lose the money they have invested in the company if it fails.
Shareholders may be individuals or other companies.
Shares cannot be offered to the general public Limited Partnership.
Some points of interest about limited partnerships are:
The partners share the risks, costs and responsibilities of the company.
They can be individuals or other businesses.
The distribution of profits is equal amongst all partners unless otherwise stated in the partnership agreement.
Income taxes for each partner are collected from their share in the profits.
Partners should register as "self employed".
It's possible to have 'sleeping' partners who contribute money to the business but are not involved in running it from day to day.
They are made up of one or more general partners and one or more limited partners.
General partners are jointly liable for any debts owed by the partnership and so are equally responsible for paying off the whole debt.
On the other hand, limited partner's liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance.
They don't generally have to make an annual return or file accounts with the Companies House.
Limited Liability Partnerships (LLPs).
Some points about limited liability partnerships are:
All features common to all partnerships apply to this type.
See the first point in the previous kind of partnerships.
They must have a minimum of two "designated members"
who have extra responsibilities by law.
If for any reason the number of designated members falls to one, every member is deemed to be a designated member.
They must send annual returns to and file accounts with the Companies House.
A partner's liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance.
This means that members have some protection if the business runs into trouble.
Public Limited Company (PLCs).
This type is for large corporations.
A PLC must issue shares to the public to a value of at least £50,000.
They exist on their own right, meaning the finance of the company is separate from the personal finance of the members.
It is however the only type of business that can raise money by selling shares to the general public.
Community Interest Company (CIC).
Right-to-manage (RTM) Company.
Scoietas Europaea (SE) or European Company. , Use the links provided in references and citations to find more information about the specific type of company you intend to form.
You'll find more in-depth detailed legal matters and rules on these official websites. , This includes:
Company Name and Address.
The company's name must not include any words that might be considered sensitive, and it should not be a name registered before.
You can use the WebCHeck Service provided by the Companies House online to check if a name was registered before or not.
Officer Details (Director and Secretary).
This includes full name, residential and service addresses, nationality, date of birth, any former names, and 3 pieces of information from the following:
Town of birth Last 3 digits of telephone number Last 3 digits of National Insurance number Last 3 digits of Passport number Mothers maiden name Eye Color Fathers first name Share Capital and Shareholder Details.
This means, the details of each shareholder and the value of their shares.
Payment.
A fee is payable to the Companies House for the registration service. , This applies if you've chosen to form a private company limited by shares, with model articles.
See the "Web Incorporation Service" section below for further instructions. , This is necessary if your company type choice was not a private company limited by shares, with model articles.
See the "Paper Registration" section below for further instructions. -
Step 2: Decide the desired legal structure of your future company.
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Step 3: Make sure you understand the consequences and requirements of the legal structure you chose.
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Step 4: Prepare the basic requirementsfor a registration application.
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Step 5: Use the Business Link / Companies House Web Incorporation Service to register the company.
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Step 6: Complete the paper forms required for registering your company and submit them directly to the Companies House.
Detailed Guide
Formation agents are mostly capable of incorporating any type of company.
They can also provide you with specialist advice and legal consultancy.
They are usually professional and seasoned in the field.
On the other side, you should be able to save the extra money for their fees and the costs of any advice you get from them.
If you choose this option, you can find a list of formation agents at the companies house website referenced on the sources and citations section. , There are 7 types of limited companies in the UK:
Private-Limited Company.
A private limited company may be limited by shares or by guarantee.
Some points about private limited companies are:
Appointing a company secretary is not a must.
However, should one be appointed, the Companies House must be notified.
They must file their accounts annually with the Companies House.
They must send an annual return to the Companies House.
For a company limited by shares, shareholders are not responsible for the company's debts unless they have given guarantees.
However, they may lose the money they have invested in the company if it fails.
Shareholders may be individuals or other companies.
Shares cannot be offered to the general public Limited Partnership.
Some points of interest about limited partnerships are:
The partners share the risks, costs and responsibilities of the company.
They can be individuals or other businesses.
The distribution of profits is equal amongst all partners unless otherwise stated in the partnership agreement.
Income taxes for each partner are collected from their share in the profits.
Partners should register as "self employed".
It's possible to have 'sleeping' partners who contribute money to the business but are not involved in running it from day to day.
They are made up of one or more general partners and one or more limited partners.
General partners are jointly liable for any debts owed by the partnership and so are equally responsible for paying off the whole debt.
On the other hand, limited partner's liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance.
They don't generally have to make an annual return or file accounts with the Companies House.
Limited Liability Partnerships (LLPs).
Some points about limited liability partnerships are:
All features common to all partnerships apply to this type.
See the first point in the previous kind of partnerships.
They must have a minimum of two "designated members"
who have extra responsibilities by law.
If for any reason the number of designated members falls to one, every member is deemed to be a designated member.
They must send annual returns to and file accounts with the Companies House.
A partner's liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance.
This means that members have some protection if the business runs into trouble.
Public Limited Company (PLCs).
This type is for large corporations.
A PLC must issue shares to the public to a value of at least £50,000.
They exist on their own right, meaning the finance of the company is separate from the personal finance of the members.
It is however the only type of business that can raise money by selling shares to the general public.
Community Interest Company (CIC).
Right-to-manage (RTM) Company.
Scoietas Europaea (SE) or European Company. , Use the links provided in references and citations to find more information about the specific type of company you intend to form.
You'll find more in-depth detailed legal matters and rules on these official websites. , This includes:
Company Name and Address.
The company's name must not include any words that might be considered sensitive, and it should not be a name registered before.
You can use the WebCHeck Service provided by the Companies House online to check if a name was registered before or not.
Officer Details (Director and Secretary).
This includes full name, residential and service addresses, nationality, date of birth, any former names, and 3 pieces of information from the following:
Town of birth Last 3 digits of telephone number Last 3 digits of National Insurance number Last 3 digits of Passport number Mothers maiden name Eye Color Fathers first name Share Capital and Shareholder Details.
This means, the details of each shareholder and the value of their shares.
Payment.
A fee is payable to the Companies House for the registration service. , This applies if you've chosen to form a private company limited by shares, with model articles.
See the "Web Incorporation Service" section below for further instructions. , This is necessary if your company type choice was not a private company limited by shares, with model articles.
See the "Paper Registration" section below for further instructions.
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Jessica Stevens
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