When setting up a business in the United Kingdom, there are several models on which to base it. Most common is the structure of the sole trader. In this model, the finances of the company are not tied to personal finances. This is why another desirable business structure is a limited liability company. It is referred to as limited because personal finances are unrelated to business finance. That, and shareholders assume no responsibility for debts that the business takes on. There are some things to know about setting up a limited company.
Once the initial planning is done, and you are ready to get your business in motion, you have to make sure you register with the Registrar of Companies at Companies House. Legal documentation must be on record there, and you cannot begin to operate your business until it is. This paperwork may be filed by you or an agent who represents you. You may also register the documents online. The relevant documents include the Memorandum of Association, Articles of Association, and Form IN01. The information contained on these forms is, respectively, the name of your company and the kind that it is, the power granted the directors as well as the shareholders' rights, and pertinent information regarding directors, secretaries, and shareholders. Certain words may send a signal that will cause Companies House to ask you for additional information.
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 must also make a decision as to what type of limited company you will set up. The most common include private companies that are limited by shares or guarantees, and public. Those limited by guarantees do not involve shareholders, and it must be public to trade stocks 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 the initial planning is done, and you are ready to get your business in motion, you have to make sure you register with the Registrar of Companies at Companies House. Legal documentation must be on record there, and you cannot begin to operate your business until it is. This paperwork may be filed by you or an agent who represents you. You may also register the documents online. The relevant documents include the Memorandum of Association, Articles of Association, and Form IN01. The information contained on these forms is, respectively, the name of your company and the kind that it is, the power granted the directors as well as the shareholders' rights, and pertinent information regarding directors, secretaries, and shareholders. Certain words may send a signal that will cause Companies House to ask you for additional information.
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 must also make a decision as to what type of limited company you will set up. The most common include private companies that are limited by shares or guarantees, and public. Those limited by guarantees do not involve shareholders, and it must be public to trade stocks 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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