How to register a limited company (ltd)

Before you can begin trading as a limited company you need to register (or incorporate) with Companies House, either directly, through a registration agent or on Smarta. This guide will talk you through the process of company formation and outline the decisions and documentation you need to think about first:

1. How to register
2. Company officers
3. Shares
4. Documentation

1) How to register

There are several ways to register. You can do it quickly and easily online with Smarta. Alternatively, you can register with a company formations agent, do it yourself directly at Companies House or pay an accountant to take care of it for you. Registering yourself is the cheapest option at £20, but involves completing and filing all documentation yourself, which isn't easy and can take considerable time to compile. Registering online starts from £24.99 but Smarta and good registration agents will automatically fill in and file your documents. Accountants, of course, are the costlier option as you're paying by the hour for professional advice.

• Registering direct to Companies House, a registration agent or online with Smarta
• Accountants will charge more

2) Company officers

The law requires you have at least one company director, whose name and address is stated in the company's Articles of Association, and is a 'natural person' - rather than another company - over 16 years old.  When registering online you'll need to create digital signatures for all directors, by detailing three pieces of personal information: First three letters of mother's maiden name; Town of birth; First three letters of eye colour.

• You must have 'natural person' director 16 years old or above
• You must make a digital signature if registering online

3) Shares

All private companies are owned by shareholders and divided up through shares. The share capital is the number and nominal value of the shares. This can be any figure you wish and you don't have to issue all of the shares. For instance if you have a share capital of 1,000 valued at £1 each you could divide that among shareholders based on their holding or alternatively issue one to yourself and keep 999 for issuing at a later date.

• Share capital can be any figure you wish
• Divide shares based on holding

4) Documentation

If you're registering directly to Companies House you will need to fill in four forms: A Memorandum of Association, which explains the company's name, location and function; Articles of Association, which describe how it will be run; form 10, or the Statement of the First Directors, Secretary and Registered Office, which say where the company's registered office is and gives details of directors and their addresses, and form 12, or the Declaration of Compliance with the Requirements of the Companies Act , which shows the company meets all the legal requirements. If you register online or with Smarta you'll still be submitting these forms but it'll be done for you.

• You need to source, complete all four forms if registering yourself
• Smarta and online registrations will do this for you

Smarta offers a company registration service powered by the National Business Register.  You can search for available names then register a business name, or set up a company and/or register a trademark with us. You will receive a professional binder with all your official documents via post within 3 days.

Go to our company registration tool here: Company registration tool

Smarta Business Builder

To help you on your business journey, we've created Smarta Business Builder, the complete online tools package for growing your business. Website Builder, Business Plans, Accounting Software, Legal Documents and Email - all in one place - from just £20 per month with no contract! Try it out today.