After carefully examining each legal structure and weighing up their options, you’ve now made an executive decision to operate your business as a limited company. Yet, you might still be wondering where to start and what requirements are needed to get the ball rolling. So, the J&P team have decided to lend a helping hand by providing you with a list of 5 essential items that you will need to form a limited company.
What you need to develop a limited company
1. Name your company
One of the most exciting aspects of forming a limited company is creating a name for your brand. This may sound foolish, but look at your business as if it’s your baby in the respect that you have to nurture it, care for it and help it grow; and one day it will take care of you. Therefore it’s important that you put some thought into your company name since it’s what the public will identify it as when it enters the market. To check if your company name isn’t already taken check the company name tool here.
However, there are some rules set by Companies House regarding what you choose to name you company:
• Your company name needs to be unique and it shouldn’t be similar to any other registered company, and nor should it be similar to an existing company name.
• You are forbidden to use offensive and sensitive words. Furthermore, you can’t use words that are protected or associated with the government or public authority.
• Your company name is limited to 200 characters and it has to conclude with either limited or LTD (although some exemptions exist)
2. Registered office address
Every registered company in the UK must have a registered office address. Government officials use this address to correspond with companies and to store company registers for inspections. There are many rules regarding the address that you can use, such as:
• The address must be part of England & Wales, Scotland or Northern Ireland jurisdiction in which you’re incorporating your business.
• It must be a physical address
• You cannot use a PO Box number or DX number
Please note that your company office address will be available to the public on the register of companies.
3. A service address
A service address is required by all directors, secretaries and LLP members when incorporating a limited company. The official address will be used by HRMC and Companies Houses to send correspondence to company representatives.
These are the guidelines for service addresses
• The address can be anywhere in the world
• It must be a physical address
• You can’t use a PO Box number or DX number
• You can only use one service address at a time, but you can change it anytime you want
• The service address can be the same as the registered address
• Just like the registered officer address, the service address will be available to see on the public register
4. Appoint a Director
To form a limited company you will also need to appoint at least one company director, who will take on the responsibility of making executive decisions on behalf of the company and managing the day to day operations. Almost anyone can be a director but the restrictions include;
• You can’t be under 16 years old
• You can’t be an undischarged bankrupt
• You’re not allowed to be a disqualified director whose term of disqualification isn’t yet expired
• You can’t be the auditor of the company
Directors aren’t fixed and new ones can be appointed at anytime.
5. Shareholder
You will also need to have at least one shareholder that will take ownership of the company. Majority of organisations are privates companies limited by shares, which means that the profit that they make is shared between its owners or shareholders. A director and a shareholder can be the same person which is ideal for some who are forming a company by themselves.
Where the company is to be limited by guarantee, the members (guarantors) agree to ‘Guarantee’ invest a certain amount of capital into the business in case they should ever experience any financial worries.
These are the five requirements that you need to begin your company formation process. But, please bear in mind that there are other matters to consider when incorporating your company, which will be dealt with by your company formation agent as part of their online registration service. So you don’t have to worry about sourcing them yourself. If you are still yet to find a company formation agent, then look no further, as we can assist you in registering your UK business.
If you would like further information regarding this service, please get in touch with us today on n 0161 637 1080 or e-mail enquiries@jpaccountant.com
