Are you looking to set up a limited company but do not know how to get started? Be sure to stick to these five main steps and you will soon know how to plan and prepare to register a limited company and achieve your business goals.
Step 1: Choosing a Name for Your Limited Company
Deciding on the right name for your limited company can be a bit of a tightrope walk. Ideally, you want it to serve many purposes. It needs to be creative and original but also industry-specific. People should know exactly what you offer when they hear it.
In addition, with limited companies, that originality is essential, as no two are able to have the same name. It is also important to bear in mind that Companies House have some rules to abide by when it comes to names. Most of these rules are just good common sense. If you avoid offensive words and phrases, then you should be just fine.
For a little extra peace of mind, it is worth making a list of potential names and checking which domains would be available for a website to avoid hours of wasted time.
Step 2: Appointing at Least One Limited Company Director
Each limited company is required to have at least one person who is responsible for each company. Therefore, you will need to appoint a company director. However, limited companies do not have a limit on the number of directors your company can have. As long as they are over the age of 16, you are well within your rights to appoint them.
Of course, being a company director is not easy. The appointment people or persons will be the final word on the direction of the company and make all decisions based on what is best for business and not on their personal feelings.
Step 3: Deciding on the Shareholders
It is a requirement for all limited companies to have shareholders. There is no limit on the number of shareholders you can have, but you will need to have one at the very least. You can divide your limited company evenly between your shareholders, unevenly, or even keep 100% of it for yourself if you are a small to medium business.
All limited companies must provide information about the shares and the division of the shares. You will need to include the full names and addresses of all shareholders, the number of shares, and their actual value.
Step 4: The Memorandum of Association
These are extremely important documents that officially state your intentions to run the company. All directors and shareholders sign these documents. Think of it as an online agreement of written rules about how your company will be run that is agreed upon by all of your most senior members.
Step 5: Registering Your Limited Company
Registering your company with Companies House costs as little as £12. You will require the residential addresses of your directors (or service addresses at the very least). You also need a breakdown of the share structure within your new limited company before you officially register.
