There are a few options from which to choose for those setting up a business in the UK. Most common is the business structure of the sole trader. When utilizing this plan, personal finances and company finances are not kept separate. This is why limited liability companies are the next in line regarding popularity. What makes this type of company limited is because personal finances are not linked to those of the business. Plus, no responsibility is passed on to the shareholders of the business for any debts that it may encounter. Following is some information on how to set up a limited company.
Once you have taken care of the preliminary planning of your business and are ready to begin operations, you must be registered with the Registrar of Companies at Companies House. The proper documents must be filed by you or an agent who works on your behalf. This process can even be performed online. These documents include the Memorandum of Association, Articles of Association, and Form IN01. Respectively, these forms detail the company's name and type of business; the directors' powers and rights of the shareholders; and the details of the directors, secretary and shareholders. Occasionally, more information will be requested if particular wording shows up on your forms.
Companies House must also receive the yearly accounts regarding your company. These accounts will accompany an Annual Return, abbreviated AR01, which provides timely information about the company. Filing this form requires a fee. Annual profits and other taxable income your business experiences must be brought to the attention of HMRC. Finally, a corporation tax return must be submitted, and liabilities must be paid on inside of nine months.
You will also need to decide upon the type of limited company you will form. Some of the main types include private companies limited by shares, private companies limited by guarantees, and public limited companies. Those limited by guarantee do not possess shareholders, while the company must be that of public limited in order to trade on the stock market.
Setting up a limited company is really not all that difficult. The amount of forms and attention to detail on them can become tedious, but it is more about getting registered so that you are legal. Most of the work is done in the planning phases, considerations such as what your product will be, how you wish to limit your company either with shares or guarantees, and what type of director setup you desire. Once your limited company is set up, then you are ready to get down to business.
Once you have taken care of the preliminary planning of your business and are ready to begin operations, you must be registered with the Registrar of Companies at Companies House. The proper documents must be filed by you or an agent who works on your behalf. This process can even be performed online. These documents include the Memorandum of Association, Articles of Association, and Form IN01. Respectively, these forms detail the company's name and type of business; the directors' powers and rights of the shareholders; and the details of the directors, secretary and shareholders. Occasionally, more information will be requested if particular wording shows up on your forms.
Companies House must also receive the yearly accounts regarding your company. These accounts will accompany an Annual Return, abbreviated AR01, which provides timely information about the company. Filing this form requires a fee. Annual profits and other taxable income your business experiences must be brought to the attention of HMRC. Finally, a corporation tax return must be submitted, and liabilities must be paid on inside of nine months.
You will also need to decide upon the type of limited company you will form. Some of the main types include private companies limited by shares, private companies limited by guarantees, and public limited companies. Those limited by guarantee do not possess shareholders, while the company must be that of public limited in order to trade on the stock market.
Setting up a limited company is really not all that difficult. The amount of forms and attention to detail on them can become tedious, but it is more about getting registered so that you are legal. Most of the work is done in the planning phases, considerations such as what your product will be, how you wish to limit your company either with shares or guarantees, and what type of director setup you desire. Once your limited company is set up, then you are ready to get down to business.
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