Do you want to know How to Set Up a Limited Company? It takes a lot of courage to decide to start your own company because you need to have the necessary funds, a product or service in mind, and a plan of action.
It doesn’t matter if your company is a limited liability partnership, a public company, or a private one, you can register it on your own because the procedures are straightforward. However, hiring an agent is the best course of action if you want to avoid as many errors as you can. There are three kinds of limited companies:
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Private Limited by Shares
In this case, the company has shares that are not available to the general public, even if an existing shareholder wishes to sell their shares.
Private Limited by Guarantee
This kind of company does not have shares, but rather members who have pledged to save the company in the event of liquidation. This is due to the lack of share capital. This type of company is typically non-profit.
Public Limited Company
It is the direct opposite of a Private Limited Liability Company. The shares are available to the general public here. Because it is owned by shareholders, this company operates independently of its owners.
How to Set Up a Limited Company
Below is a detailed step on how to set up a private limited company.
Find a Suitable Name
This is the first step to take after determining what your company will sell. It is important to choose a name that corresponds to the company’s purpose and vision, as well as one that will ring through in the minds of your prospects or target audience.
You must choose a distinct name. To ensure this, you may need to conduct a company name check to ensure that you have a reserved name and follow the rules. Whatever name you choose, Companies House requires that you add “ltd.” to the end of it to indicate that it is a private company, and “plc.” to indicate that it is a public company.
If your articles of the association meet the requirements of the website you will register on, your company can be exempted from using “ltd.” at the end and instead use its Welsh equivalent. This is known as a limited by guarantee exemption. After successfully registering, you must submit the Companies House form NE01.
Get a SIC Code
SIC code is an abbreviation for Standard Industrial Classification Code. It is used by the government and Companies House to determine what type of business your company is in.
After you’ve decided on a name and checked its availability, you can apply for a SIC code even before you register. This is important because the Companies House will not allow you to register your company unless you have this code. If your company engages in a variety of economic activities, you may be assigned more than one SIC code.
Appoint Company Officers
All companies must have at least one person in charge at all times. A public limited company must have at least two directors and a secretary. In the case of a private limited company, it is usually the person who founded it or gave birth to the idea.
The company agents at https://help.uniwide.co.uk/seven-things-to-decide-before-setting-up-a-limited-company/ will advise you on how to take proper precautionary measures when choosing the officers, as this will affect the formation of the company and its overall operation.
A company’s board of directors is appointed in accordance with the company’s Articles of Association. The company’s secretaries have typically educated professionals with degrees in law and accounting. They record board meeting minutes and statutory registers, making sure they are accurately filled out.
A company’s board of directors is only required to act in accordance with its articles of association. They are in charge of collecting all the documents that would be sent from the Companies House as well as all annual reports. It’s interesting to know that anyone over the age of sixteen is eligible to become a director.
Have an Address for Your Company
During registration, you will be required to input your company’s address. This address is important because official notices and/or documents are sent to it. What if you choose to use your home address? There is no problem; just keep in mind that, like other companies’ addresses, yours will be publicly available at Companies House.
But what if this isn’t something you want? There is still no problem; you can hire an agent who will provide you with an address and be in charge of keeping the documents that are sent.
It is important to note that you can use your residential address or the address of the agent even if it is not the location of your company. Regardless, it must be in the state in which you are conducting your business. It is not sufficient to use a P.O. Box address alone.
What to Have Before You Start Running Your Own Company
Before you can start running your company, you will need to have a few documents:
Article of Association
This document is of utmost relevance to the company’s shareholders due to the fact that it details the rights that shareholders of the company possess as well as the manner in which power is distributed among the company’s directors.
Memorandum of Association
This document includes a legal statement with the names and addresses of all the directors and shareholders. It must be signed by all parties involved in the establishment of the company, including those listed above.
This document contains detailed information on the company’s shares. The shares of the shareholders, directors and shareholders of the company are listed in detail here. The total share capital is also included in this document.
Registering a limited company will require more paperwork, and running it will require more accounting knowledge. Instead, establishing a limited company is a good way to safeguard your personal wealth and assets.
A Certificate of Incorporation will be issued to you once you have been registered. Also, remembering and following the useful guidelines discussed in this article will go a long way toward assisting you in setting up a limited company.