Private Limited Companies are much smaller and do not pursue public funding; instead, they use their own financial capital to function.
1. Choose a type of limited company
When you have decided to set up a limited company, you need to select a type that you want to create. The two primary options are:
Private Companies Limited (LTD)
Public Companies Limited (PLC)
2. Choose a name for your business
Many freelancers, contractors, start-ups, and small companies may opt for a private limited company, as PLCs will have a minimum share capital of £50,000, with at least two owners, two directors, and a qualified secretary of the company.
The business name needs to be totally original, much like a web address. To guarantee a specific name, you can distinguish in a few ways - for example, a limited company name will use either "Limited" or "Ltd."
3. Form a small company
If step two was the easy part, this one is the difficult part. But it can be easy if you're organized. You can go online in about ten minutes and set up your own limited business. You only need to have some personal information to help the Companies House recognise you as the owner of the company. Companies House will also have your limited company registered in a couple of hours.
4. Complete the incorporation process
Companies House is responsible for all UK limited company registration. Detailed information is given through the website. To complete the incorporation process the following documents must be completed and submitted to Companies House. Perhaps these will be done by your company forming a representative or accountant on your behalf:
Association Memorandum - Limited company name, place, a form of business
Form 10 - Names of the owner, identities, and address of the registered limited company
(This may not have to be where you are working from but where the HMRC and Companies House legal correspondence is sent)
Form 12 - notes that the limited company fulfills the terms and conditions of the Companies Act
Articles of Association – specifies the powers of the owner, the rights of the shareholder, etc.
There are a few more admins that you can take care of and there are some monitoring and filing duties that you need to keep on top of. To know about the limited company's filing requirements, watch the video given below: