So, you want to set up as a limited company - whether this is a completely new business or you’re a sole trader looking to change structure, we're here to simplify the process for you. Exciting stuff, let’s get started!
Entrepreneurs and business owners are increasingly realising the advantages of registering a company as a Private Limited Company (LTD).
These separate legal identities allow you to minimise personal liability, maximise tax efficiency, improve credibility, and make the most of investment opportunities.Incorporating as a limited company is a straightforward process that you can complete quite quickly, and with minimal effort.
To help you navigate the process and make your initial setup as straightforward as possible, we’ve outlined the 6 steps to registering your UK Limited company.
Step 1: Ensure that a limited company is the right model for you
Your business structure will affect taxes and funding opportunities, so you should make sure that the structure you choose is the right company type for you. Other options include becoming a sole trader or setting up a business partnership.
Step 2: Choose a business name
Draft a list of potential company names and make sure yours is available.
Step 3: Set up the company’s directors and secretary
Every company must have at least one director, but you don’t necessarily need to appoint a secretary.
Step 4: Decide who are the shareholders and people with significant control (PSC)
Shareholders are those who have company shares, while PSCs are those with over 25% of a company’s share and have voting rights. The directors can be shareholders and PSCs.
Step 5: Register your company by collecting the necessary documents
You will find all the necessary documents on Companies House or use a third-party service to set up your business.
Step 6: Understand your responsibilities
You need to be aware of the records you need to keep and what your responsibilities as a director are. You can find full details of director duties and responsibilities along with a breakdown of filing requirements contained within the FREE Limited Company Guide for download below.
If you have an accountant, they will be able to advise you on your tax liabilities and help you get set up, relieving a lot of the pressure in the early days and providing you with the peace of mind that all the paperwork is covered, allowing you to get on with running your business.