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.
After you have decided what industry your business will operate in, you must register with the Registrar of Companies at Companies House before you may start your operation. Proper documentation must be submitted by you or by an officer who works for you. The procedure may also be completed online. The necessary documents include the Memorandum of Association, Articles of Association, and Form IN01. Detailed on these forms is the name of the company and the type of business that it is, the power of the directors and rights of the shareholders, and details concerning directors, secretaries, and shareholders respectively. If you include particular wording when filling out the forms, then additional information might be requested.
Yearly accounts concerning your business must be submitted to Companies House also. An Annual Return form, also known as AR01, must be submitted as well as your yearly account report. The AR01 provides Companies House with the up-to-date information about your company and often involves a processing fee. That is not all, as tax information in relation to profits and taxable income that your company annually produces must be brought to the attention of HMRC. To top it off, a corporation tax return must be filed, and you will have nine months to pay on the liabilities.
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.
