So, you’ve had a business idea, checked out your competitors, and found your niche. Now it’s time to register your company and get ready to start trading. If, in the past, the most common business model was sole trading, today entrepreneurs and business owners have seen the advantages of registering a company as an LTD.
Indeed, a Private Limited Company (LTD) are separate legal identities that 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. Here’s what you need to know.
How To Register a UK Ltd Company
Registering a UK LTD can seem like an intimidating process at first - especially if you’ve never done it before. However, thewhole process is simpler than you’d think, and there are no minimum share capital requirements to register your company.
Here’s an overview of the process:
- 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.
- Choose a business name - draft a list of potential company names and make sure yours is available.
- 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.
- 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.
- Collect all the documents needed for registration - you will find all the necessary documents on Companies House or use a third-party service to set up your business.
- Understand your responsibilities - you need to be aware of the records you need to keep and what your responsibilities as a director are.
Director Duties and Responsibilities
The process of setting up your company is straightforward and accessible. However, once your company is registered, the directors will have certain duties and responsibilities to respect, including:
- You need to register your company at Companies House.
- Every year, you need to file annual accounts and confirmation statements.
- You need to maintain a record of the PSCs in your company in the PSC register.
- You need to submit your accounts through HMRC every year.
- You need to pay an annual return and Corporation Tax to HMRC.
- You need to register for a Self-Assessment to send your personal tax return to HMRC (you might not need to do so if your company is a charity, NGO, etc.)
- You will need to follow the company rules you have submitted through your “Articles of Association”.
- Record and report any changes within the company.
- Keep the shareholders aware of any company transaction that might benefit you personally.
Depending on the type of company you set up, there are several filing requirements that you regularly need to meet. These include:
- Confirmation statement
- Annual accounts
- VAT returns
- CT600 or corporation tax return
- Employer returns (PAYE)
- Eventual Companies House filings
For directors, it is crucial to understand these filing requirements before setting up a company because being late in filing these documents, or not doing so altogether can lead to fines and penalties.
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.
At Blue Rocket, all of our clients benefit from our unlimited support, which means you can get in touch with our team as often as you like, to check on your accounts or get help with a specific question or concern, without the worry of incurring additional costs.
If you’re at the beginning of your business journey and unsure whether an LTD structure is right for you, head over to our blog Get your new company structured correctly,where we explore the benefits of LLP, Partnership and Sole Trader.
If you’d like to get in touch for a no obligation chat, call us on 01322 555 442 or email firstname.lastname@example.org.
From our base in Dartford, Blue Rocket Accounting supports individuals and companies with services such tax investigation protection, tax planning, management accounts and bookkeeping.
The information and data in this article was correct at the time of publishing and every attempt is made to ensure its accuracy. However, it may now be out of date or superseded. Blue Rocket Accounting make no representation or warranty of any kind regarding the content of this article and accept no responsibility or liability for any decisions made by the reader based on the information and/or data shown here.