4 October, 2021
Setting up your limited company is the first step you need to take before you start running your business and making money. It can be a confusing process, with many things to consider - including cost.
So, before you jump into it, there are a number of things you have to consider, including what’s the best strategy for you, how long it takes, and what’s the cheapest way to set up a limited company.
There are three common types of limited company in the UK:
A large, established company with at least two directors and a secretary. Because of their brand name, they can easily attract investors who will become shareholders.
Commonly used for small businesses and startups, and will often have a small number of shareholders who control the business.
Limited to non-profits, and have guarantors who pay fixed contributions.
There are a number of advantages to registering as a limited company:
There are a number of steps you should follow when setting up your limited company:
Decide on the name of your company. Remember, you can’t register a name that already exists, and Companies House won’t allow names that are offensive. In the past two years, Companies House rejected 800 company names on the basis they have the potential to offend.
Assign company directors, which can be as many as you like - there’s no limit, so long as they’re over the age of 16. However, directors do have responsibilities, so it’s important that directors are dedicated to the business.
Who are the shareholders? A number of small businesses will have just one shareholder - you - but there’s no limit on how many shareholders your business can have.
When registering your limited company, you will have to declare your company’s share capital and the names and addresses of your company’s shareholders.
Ensure you have your articles of association and memorandum, which are the documents that detail how you’re going to run your business.
You can use a template for your articles of association.
It’s vital that from the very first day of your limited company, you keep complete and thorough records, both relating to the finances of your business, and those relating to the company.
Once you have all of the above information, you’re able to register your business with Companies House. To do this you will need an official address - which cannot be a PO box but can be a virtual office address - and SIC code.
For more in-depth information, check out our guide on how to register a limited company in the UK.
It costs £12 to register your business with Companies House.
However, it isn’t just money it will cost you when setting up a limited company. You also need to consider:
If you’re unsure about the registration process and are looking for somebody else to take care of this for you, you can use a formation service.
Company formation services can remove the headaches associated with registering as a limited company. When using Hoxton Mix to register your company you’ll receive
Our formation services start from just £10, and can save you time, money, and energy that you can put back into running your business.
At Hoxton Mix, we know everything there is to know about starting a company. We’re here to help you register your company quickly, easily, and affordably.