Here are the four important steps to set up a limited company.
- Choose a type of your limited company:
When you decide to set up a limited company, you will need to select which type of company you want to create. The two options are:
- Private Limited Company (LTD)
- Public Limited Company (PLC)
- Choose a name for your business:
The business name needs to be original, much like a web address. Also, it must be available to use. A limited company can use either "Limited" or "Ltd." at the end of the company name.
- Form a company:
Set up a limited company online or contact any company formation agency. You will only need to provide some personal information to help the Companies House recognise you as the owner of this company. Companies House will register your limited company within a couple of hours.
- Complete the incorporation process:
The Companies House is responsible for all UK limited company registration. To complete the incorporation process, you must provide the following documents to Companies House. Perhaps these can be done by a company formation agent or an accountant on your behalf:
- Memorandum of Association - Name and registered office address of your Limited Company.
- Form 10 - Name and identity of the owner and address of the registered UK limited company.
- Form 12 - Notes that a limited company fulfils the terms and conditions of the Companies Act.
- Articles of Association - It lists the powers of the owner, rights of the shareholder, etc.
Also, there are some monitoring and filing duties that you need to keep on top.