How to Register as a Limited Company in 6 Simple Steps
Setting up a limited company is an exciting step. Whether you're launching a brand-new business or switching from sole trader status, we're here to make the process easy.
A limited company offers several advantages. It separates personal and business finances, reduces personal liability, improves tax efficiency, and boosts credibility. The good news? Registering a limited company in the UK is simpler than you might think.
To help you get started, here are the six steps to setting up your limited company.
Step 1: Make Sure a Limited Company Is Right for You
Your business structure impacts your tax obligations and funding opportunities. Before registering, consider if a limited company suits your needs. Other options include operating as a sole trader or forming a partnership.
You can also read about blog Sole Trader or Limited Company: Which Is Right for You? | Blue Rocket
Step 2: Choose a Business Name
Pick a unique and professional name for your company. Check its availability on Companies House to ensure no one else is using it.
Step 3: Appoint Directors and a Secretary
Every limited company needs at least one director to oversee operations. A company secretary isn’t required but can be helpful for administrative tasks.
Step 4: Identify Shareholders and People with Significant Control (PSC)
Shareholders own company shares, while PSCs have over 25% ownership and voting rights. Directors can also be shareholders and PSCs.
Step 5: Register Your Company
You can register your business online through Companies House or use a third-party service. You’ll need to provide key documents, including a memorandum and articles of association.
Step 6: Understand Your Responsibilities
As a company director, you have legal duties, including record-keeping and filing annual accounts. Knowing your obligations from the start will help you stay compliant.
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An accountant can guide you through tax liabilities and handle paperwork, so you can focus on growing your business. Need help? Contact our expert accountants today.
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