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:
- How to register
- Company officers
- Shares
- 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
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