LIMITED COMPANY FORMATION UK
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Limited company in the United Kingdom is a corporation whose liability is limited by shares (Ltd), which is the most common form of privately held company. There’s nothing more rewarding than starting your own business. Let Capital Office turn your dream into reality. In addition to getting your new company started we can even assist you in opening a bank account.
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FORMATION FROM THE EXPERTS
Incorporated within 4 hours Monday to Friday (Subject to Companies House) A Simple Two Step Process – Order online below
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We will contact you and confirm your details
We will register your company and post you the following documents as soon as it is incorporated.
We provide all the documents you need unlike most of our competitors who will charge you extra for the important documents like your Certificate of Incorporation.
Certificate of Incorporation
Memorandum & Articles of Association
Minutes of the first Meeting
All necessary Companies House forms
Answers to common questions asked by our clients
What is a director’s service address used for?
A Directors Service Address is an official requirement for Companies House for all registered businesses. This address is kept on the public records, so can be viewed by anyone wishing to see it. However, company directors can choose to list their directors address for public display as a different address to their residential one. Only their directors service address will be made public and their residential address will be kept off the public register. This is easy to do when using a Directors Service Address package such as the one we offer.
What is my registered office address?
Your registered office address is your official address that is listed with Companies House. Your address must be within England, Wales or Scotland and be an address where all your legal documents and official paperwork can be delivered for your company. This is the address that you must include on all of your company correspondence, such as your invoices and letterheads. You must also display it on your company website and can include it in your company email signature. As this address is kept on the public record at Companies House, it is available for any member of the public to inspect.
Because it is such a publicly accessible address, many company owners choose to use a Registered Office Address Service. This can be especially helpful if you are running your business from a private residential address and do not wish to make your home address public and open to cold callers and junk mail. Having a professional sounding business address can also add some gravitas to your company image and perception by others. For example, it creates a much better image of your company to display a prestigious Central-London office address rather than a residential address or a unit number on an industrial estate.
How do I allocate shares in my company?
There must be at least one shareholder to take one share in the company by law. You can have another shareholder to take on an equal amount of shares, then it would normally be allocated as one share each. Since authorised share capital has now been abolished by The Companies Act 2006, you can now choose the amount of company shares to be issued and distribute them accordingly. Here is an example of how your company shares could be allocated:
Andrew wants to take 100% of your issued company shares. So if your company issued one share, Andrew would take that share and own 100% of your shares. No matter how many shares you issue, he would take them all so if you issued 100 shares, Andrew would take all one hundred.
Susan and Andrew want to each take 50% of the shares in your company. So each would take 1 share in your company. Should you issue 100 shares, they would take 50 shares each.
Susan want to take 80% of your company shares and Andrew wants to take 20%. So Susan will take 8 shares and Andrew will take 2 shares. Or 80 and 20 respectively where your company has issued 100 shares.
If you need any help and guidance about issuing shares, then please do not hesitate to contact us for some advice. We would be pleased to help!
Do I need to fill out any complicated paperwork?
The simple answer to this question is no. You can complete our very easy to follow online registration form with your details. You can then sit back and leave the rest to us. We will come back to you to confirm your details and for any further information we may need for the formation process.
What is a certificate of incorporation?
A certificate of incorporation will be issued once your company has been officially formed. It is a document that confirms your company registration with Companies House and that your company name has gone onto the public register along with your date of incorporation and your registered company number. Companies House will have your official printed certificate sent through the post to you once your company has been incorporated.
What are the memorandum and articles of association?
Both the memorandum and articles of association are necessary legal documents. These documents are used to confirm the following information:
- Your Company Name
- Your Registered Office location and
- Your statement of the internal constitution of the company
These are important company documents and you will usually have to produce these to be able to open a company bank account. If you are unsure about what should go into your memorandum and articles of association, then we can help you with this. Our company formations service includes a well-written standard memorandum and articles of association draft template that have been designed to cover all necessary bases to enable you to legally start your company. Our formations service will configure these standard documents to suit your business and will comply with the registration requirements for Companies House.
Who should be appointed as a company secretary?
As there is no longer a legal duty to appoint company secretary since Section 270 of the Companies Act 2006 came into force, it is entirely up to you whether you choose to appoint a company secretary or not. However, very many registered limited companies still choose to appoint one. Should you decide to have a company secretary, you can choose anyone you want to act as the Company Secretary for a private limited company. This may be someone who is already acting as a company director for your business, which can be useful for smaller businesses.
Who can be a company director in the UK?
Just about anyone can register a UK company and take on the role of a company director. This is allowed as long as you have not been officially banned from doing so. You can get a ban through being bankrupt or having legal proceedings taken against you.
Before you can form a company and become a director, there are certain requirements that have to be met for legal reasons:
- You must be 16 years of age or older. However, it may be difficult for anyone under the age of 18 to form a company due to banking restrictions not allowing you to open a business account until the age of 18.
- You will need at least one real (human) person to be a company director. You can have more than one director at the formations stage and you can also have a limited company listed as a director, however you do need at least one real person to be a director for this to happen.
- You already have, or can provide, a valid UK address to register your company to.
What has changed is the need for a company secretary. When you form a company there is no longer a requirement to have a company secretary on board, see Section 270 The Companies Act 2006, but it is perfectly acceptable to appoint one if you wish to do so.
What is the difference between a sole trader and a limited company formation?
Registering as a sole trader with HMRC means that you are declaring yourself as self-employed and that you will be running your own business to generate an income for yourself. This will mean that you will assume all the legal and financial liabilities of your business yourself. Should anything go wrong with your business, you could be putting your own personal money and belongings at risk.
Forming a company will set up your business as a separate legal entity in its own right. This means that you can separate yourself from your business and protect your assets through limited liability. Should your business take off and you wish to expand further down the line, you will be in a position to accept other people as joint owners through allocated company shares.
What sort of companies can be registered with a company formations service?
Of the different registered company types you can choose to go for, by far the most common in the UK is a private company limited by shares. You can quite easily recognise these companies as they will usually have the suffix Ltd at the end of their company name.
A Private Company Limited By Shares becomes a legal entity in its own right and exists completely separately from the owners of the business. To set up this type of company you would need to have at least one or more directors or company owners who will be issued with company shares. The business should be set up to run with an aim to make a profit. The profits made by the company will then be awarded to the shareholders in the form of dividends. This is one of the most popular types of company formation we do and if this is the most suitable option for you, our experts can get your new company formed within just a few short hours during a regular working week day.
You can also choose to register as a Company Limited By Guarantee. This is a company that has a structure very similar to a company limited by shares, however this type of company doesn’t have any shareholders. Instead of having registered shareholders, a Company Limited By Guarantee will have members that will act as guarantors for the company. The members will pledge to guarantee and contribute an agreed amount of money should the company have to be wound up. It is quite common for this type of company to be set up to run a not-for-profit business, such as a community organisation or local sports club. Any profits made are usually put back into the business to help cover running costs, improve or maintain their facilities, provide and replace equipment etc.
Another popular formation type is a Charity Company. Normally, anyone wishing to set up a charity group in the UK would have to first form a Company Limited by Guarantee as is explained above, but would actually form it with a memorandum and articles of association that meet the requirements set out by the Charity Commission. Once formed, the company can then go forward to be registered with the Charity Commission to be officially recognised as a registered charity.
There is also an option to form a Community Interest Company (CIC). This type of formation is a modified version of either a Private Company Limited by Shares (Ltd) or a Company Limited by Guarantee. The Community Interest Company will be able to make a profit, but most are formed for non-for-profit reasons, so any profits generated would be put towards the social aim of the company.
Another well-recognised company formation is the Limited Liability Partnership, or LLP. These types of companies are often set up by professional bodies such as solicitors and accountants where two or more individuals go into partnership together. This means that each individual professional can work independently and have their own client base, but will be able to have the shared protection of being a registered limited company.
A Public Limited Company is again something very similar in structure to a Private Limited Company, however it is allowed to sell company shares to the public. A Public Limited Company must be able to show that at least £50,000 of shares have been issued before it can begin trading. To register as a Public Limited Company there must be a minimum of at least two company directors appointed. The benefit of this type of company formation means that it can generate extra funds for the company as and when needed by selling more shares. This does result in the ownership being diluted and having very many more shareholders than the company was originally set up with.
Company Formation and our UK virtual office service
Our professional virtual office is specifically designed to help maximise your businesses performance. You can create the perfect corporate image with our range of tailored solutions designed to support you as a business owner. Our services include telephone answering, a London business address with mail forwarding and company formation services. You can now work seamlessly from anywhere without any interruption of your office services.