Running your business as a private limited company has a number of advantages. The company is legally separate from the people who run it is the main advantage. Secondly. has separate finances from your personal ones hence personal assets are always insulated and protected from unexpected risks. Thirdly, it can keep any profits it makes after paying tax. If you know the rules and rights to start a limited company, it is an easy and promising affair to establish your own company.
To start a limited company one must obtain, beforehand, a suitable company name along with an official address for the company to be applied for getting registered. The name must be a unique one which is available for registration. A name will be used only once. You can also consider receiving a business name for trading purposes.
The company must have at least one director while more directors are allowed. The company will be owned by shareholders. Hence details of the company’s shares will also have to be produced during the registration process. Checking the SIC code rightly is important as SIC identifies what your company does. Agreements from shareholders with a list of PSC will be added to the preliminary requisites.
Appointments of directors is important. A company must have at least one director while a director board is most common. Directors are legally responsible for all the operations of the company. A director must be 16 or above in age. The directors need not be from UK. The name and address of the directors must be made available from the company office. Shareholders are the owners and hence they can decide upon the director or the members of the director board. Shareholders can have certain privileges and rights for privacy. Information regarding the shares must be given during registration.
To get the registration successfully done, the memorandum of association and articles of association are needed. A ‘memorandum of association’ is a legal statement signed by all initial shareholders showing their agreement to form the new company. The ‘articles of association’ is the written rules about running the company. This too must be agreed by the shareholders, directors and the company secretary. Specific model for each of these documents are available with the authoritative offices and it should be followed.
You can register the company if all these are fulfilled. You can use the online registration portal to get the company registered in minutes. Immediately after the registration it is advisable to register for Corporation Tax. You must obtain the UTR number for Tax registration.