Ready to start your journey as a limited company? Not sure where to begin? Well, with the help of our company formation experts, the process of registering and running your new limited company couldn’t be easier.
We’ll take care of the tricky, time-consuming tasks, leaving you to focus on other areas of your business.
Expert Company Formation Services
Starting a new company is an exciting time as you get to see your business idea grow from a vision to a business venture. But often, the hardest part about starting a new business is getting out of the starting blocks, with many owners unaware of how to register a company correctly.
At Spotlight Accounting, our limited company formation service is here to help you start your new company on the right track. You can be sure that you are in safe hands with us, as our team of expert accountants process hundreds of company formations each year.
How do you form a limited company?
If you are ready to start your journey as a limited company, then you may be wondering where to begin.
Forming a limited company is relatively straightforward in the UK. You simply need to ensure you have the right people (directors and shareholders), a good business name and the relevant documentation. Once you have these essential pieces of information, you can then begin filling out and submitting an application to Companies House – the regulatory body for limited company formation and dissolution.
If you are looking for support from a specialist company formation agent, then our expert team can help. Contact us today to see how we can help you get your business up and running!
Which type of company is right for you?
Most small companies opt to form a private limited by shares company, with up to four directors and shareholders.
A UK limited company can be registered at Companies House as one of 7 different company types.
There are:
Private limited by shares (LTD): Typically small and medium-sized businesses with owners and directors being the same individuals.
Private limited by guarantee (LTD): Suitable for not-for-profit organisations like charities, clubs and associations.
Limited liability partnership (LLP): Partnerships treated as separate legal entities.
Public limited company (PLC): These are generally large businesses owned by the public and run by company directors on the shareholders’ behalf. Shares can be purchased and sold on a registered stock exchange.
Private unlimited company: A company where there is no restriction on the liability of the shareholders.
Small limited company: This is typically a company limited by shares and made up of one individual. This means that the company director and shareholder are the same person.
Most UK limited company registrations generally fall under options 1 and 2.
A limited-by-shares company is appropriate when a company exists to make a profit. Where an organisation or charity is formed for non-profit purposes, then a company limited by guarantee is more appropriate.
Company types 3-7 are more complex, and whilst we deal with these company formations, this is a more specialised area that will need specific advice before setting up your company. Contact us to find out more.
What is the limited company formation process?
The limited company formation process (how you register a limited company) is as follows:
Choose the company name
The first step is to decide on the company name, which can be tricky as it cannot be the same or similar to another registered company. You can search the Companies House register here to ensure your name has not been taken. The company name you choose also needs to avoid potentially misleading words and those that are registered under a UK trademark.
Choose the company directors (and secretary if required)
A UK limited company is required to have at least one director. There are statutory duties that a director has to carry out, including obligations to Companies House and ensuring annual accounts and confirmation statements are lodged. You can read about these here. Directors will also have to provide a service address publicly available on Companies House, so they may wish to use an alternative address, such as the registered office, rather than a home address.
Identify the shareholders or guarantor
It is a legal requirement that every UK company needs at least one shareholder or guarantor. This person can be a director as well. In the case of the shareholders, the type of shares being issued, the value, and the number of shares also need to be decided. Special articles of association need to be adopted if more than one share class is going to be used.
Identify persons with significant control
Part of the limited company formation will include notification of who the persons of significant control are. These are the people who own or control the company.
Choose the registered office address
This is the official address where legal documents are sent and are on public record. The registered office does not have to be the same as the trading address – it can be a serviced office that offers address services. A lot of our clients choose to take advantage of our address services so that we can handle the Companies House workload.
Register your company
Companies House will complete your company formation. To do this, an application and company documents are submitted to Companies House. In most cases, the company formation is completed through an online application.
Our company formation packages
Our company formation packages depend on what you need for your business. A basic and simple company formation package will include one individual acting as a sole director and shareholder.
Complex company formation packages may include different share classes and multiple directors and shareholders. At Spotlight Accounting, we want to learn about your business objectives to get the right set-up for you at the start.
What documents are required for the formation of a company?
To register a company, the following documents and company details are required to enable the formation at Companies House:
Memorandum of Association
This is a statement signed by all the initial shareholders or guarantors agreeing to form the company. Where an online application is made, this is generated automatically as part of the company registration process.
Articles of Association
This, in effect, is the bible or the rule book. It states what the directors can or cannot do and the rights of the shareholders.
Form IN01
This is the application form with all the information Companies House needs to complete the company formation.
What do I do once my company has been registered?
As well as the company documents above, you need to make sure you have the ‘statutory records’. These can include the register of directors, register of shareholders and share certificates.
Once you have all the company documents on the Companies House record, you can open a business bank account. Once your bank account is open, you are ready to start trading.
At this point, the new business can complete its VAT and PAYE registration with HMRC. Most company formations will include automatic registration for corporation tax.
Once your business has registered and started trading, the following requirement for Companies House will be the first confirmation statement and accounts.
How can Spotlight Accounting register your limited company on your behalf?
Company formation, on the face of it, can be straightforward; however, it is easy to get it wrong. Having incorporated hundreds of companies, we can help ensure you get it right.
We will need the company name, who the directors and shareholders are and a bit of information about each of these individuals if you are using address services for the directors, shareholders and company secretaries. We will then complete the registration process to set up your company on your behalf.
We will also talk to you about what the future plans are for the business so that you get the right business structure from day 1. This can include having alphabet shares so shareholders can have the same voting rights but pay different dividends.
We do not use company registration agents as we prefer to do it in-house via an online application on your behalf.
Get in touch today to learn more about our limited company formation services.
Frequently asked questions about company formation services
For more information about UK company formation, please take a look at some of our frequently asked questions below.
How quickly can you form a company?
Company formations can be completed on the same day if necessary. However, where a business bank account is needed to trade, this can take a bit longer.
Business bank accounts need to be in the limited company’s name rather than a personal account because they are separate legal entities.
Will I need to set up a business bank account once the limited company has been formed?
Having a business bank account isn’t a legal requirement, but setting one up for your new limited company will make things easier moving forward. You’ll be able to clearly see where your money flows in and out of your business account and benefit from the security of separating your personal and business finances.
At Spotlight Accounting, we can assist you in setting up your business bank account. We can provide a list of reliable business banking partners and help you make the most suitable choice for your business.
Are only limited companies required to register with Companies House?
Yes, you must register with Companies House if you are a limited company. Other company formations, such as sole traders and self-employed individuals, won’t need to register with Companies House. However, they will be required to register for Self-Assessment and ensure their taxes are paid.
