In case you have decided that you need to set up a company for the further development of your business, then, the next logical step is to decide on the legal structure of the company you are about to set up. A limited company has a lot going for it. A separate business and legal identity, limited liability on the members of the company and the ease with which new members may be introduced into this structure are all worth mentioning. Even a single person can form a ‘single member’ private company.
So, if you have decided to set up a limited company, here’s what you have to do:
In the UK, the Registrar of companies is the Companies House. Before the company you set up can begin functioning, it must be incorporated by the Companies House. Only then is the new company you set up a legally recognized corporate body.
The registration process is not overly difficult. However, it does involve the submission of many documents that require precise data. Sufficient awareness of what is required is necessary for this. In case of doubts, it is better to approach a formation agent (cheapest option), solicitor, company secretary or accountant. In this regard, it must be noted that the new Companies Act of 2006 came into force in October 2009. Therefore, there are some changes that affect both directors and shareholders in the new company set up.
Important documents that you will need for the set up of a new limited company are:
Memorandum of Association
Articles of Association
These forms contain important legal information including the name and address of the company, the rights of shareholders, authorized signatories etc. These forms are available for free download at the website of the Business House.
You will also need to have the company’s officers appointed formally. The names of officers will be recorded in the legal documents. In case of any changes in the names or addresses of these officials, the same must be informed to the Companies House immediately. The number of officers that a company needs depends on the type of company you are forming. According to the new act, every company must have one person acting as the director. Earlier, corporate directors were also allowed.
When registering the new company you are setting up, you need approach the Companies House. Standard registration fee is £20. However, if you need the company to be formed on the same day, an additional £25 must be paid. Once the registration is over, the company you set up is ready to do business!