Help Setting Up A Limited Company - The Ultimate Guide
Starting a company in the UK can be seamless when done through FormationsHunt, a trusted platform for company formation. With an easy-to-navigate interface, extensive support, and additional business tools, FormationsHunt ensures you to Create A Limited Company efficiently and professionally.
Here’s a detailed guide to help you Create A Limited Company with FormationsHunt:
Step 1: Check Your Company Name Availability
Before starting your company formation journey, ensure your desired company name is available.
- Visit the FormationsHunt website and navigate to the "Company Name Search" section.
- Enter your desired company name into the search bar and click "Search".
- FormationsHunt will instantly verify name availability with the Companies House database.
- If your chosen name is already taken, you’ll need to try alternative names until you find one available.
- Once the name is confirmed, move forward to the next step.
Step 2: Choose Your Company Formation Package
FormationsHunt offers a variety of company formation packages to suit different business needs.
- After confirming your company name, click "Choose Package" to explore your options.
- Popular packages include:
- Compare the services and select the package that suits your requirements.
Step 3: Add Optional Services
After selecting your package, you can customize it further by adding optional services like:
- Pre-submission review to ensure accuracy and prevent rejection from Companies House.
- Same-day corporation service for a faster corporation on an emergency basis, or PAYE registration service, Accounting Services, Company Seal
Once satisfied, agree to the terms and proceed to checkout.
Step 4: Provide Billing and Payment Details
- On the order page, fill in your personal and billing details, such as:
- Your full name, phone number, and email address.
- Current address for invoicing.
- Review the final cost and proceed to payment.
Step 5: Add Your Company Details (Part 1: Company Name and SIC Code)
Once payment is complete, you’ll be directed to fill in the initial details of your company:
- Company Name:
- Confirm your selected name, ensuring it adheres to Companies House guidelines (e.g., includes "Ltd" or "Limited" where required).
- Avoid restricted terms unless you have explicit permission to use them.
- Business Type & SIC Code:
- Select a Business Activity: Choose the industry or sector your company belongs to.
- Assign the Correct SIC Code: The Standard Industrial Classification Code (SIC) defines your business’s purpose.
- Example: If you’re opening an IT services company, your SIC code might be 62020 (Information Technology Consultancy Activities).
- You can select up to four SIC codes if your company operates in multiple areas.
After completing this section, proceed to provide further company details.
Step 6: Provide a Registered Office Address
It is mandatory for every UK company to have a Registered Office Address. This address will:
- Be displayed on public records.
- Serve as the official correspondence address for government authorities like Companies House and HMRC.
Options for Your Registered Office Address:
- Use Your Own Address: This can be your home or business premises, but keep in mind it will be publicly available.
- Opt for FormationsHunt’s Address Service:
- Protect your privacy by using FormationsHunt’s premium address in London or other locations.
- Included in packages like Privacy, Professional, and All Inclusive.
Additional Tips:
- The registered address must be in the UK, even if you’re an international client.
- Make sure you have access to mail delivered to this address to avoid missing important notices.
Step 7: Add Officers and Shareholders
Now, it’s time to define your company’s structure by adding Directors, Shareholders, Secretary, and People with Significant Control (PSCs).
Key Roles and Responsibilities:
- Director:
- Responsible for managing the company and ensuring compliance with UK laws.
- You must have at least one Director.
- Shareholder:
- Owns a part of the company through shares.
- You need at least one Shareholder (can be the same as the Director).
- Company Secretary (Optional):
- Assists with compliance and administrative tasks, such as maintaining statutory records, filing updates with Companies House, and managing meetings.
- Is a Secretary Mandatory?
For most private limited companies, appointing a Company Secretary is optional. However, some companies may find it beneficial for administrative efficiency.
- PSC (Person with Significant Control):
- Someone who owns 25% or more of the company’s shares or voting rights.
- Mandatory to report at least one PSC.
Can One Person Fulfill All Roles?
Yes, a single individual can act as the Director, Shareholder, and PSC. This is a common practice among small businesses who wants to Create A Limited Company by shares.
Understanding Share Allocation:
When adding shareholders, you’ll need to specify the share allocation, ownership rights, and voting powers.
- Number of Shares:
- You can allocate any number of shares (e.g., 1, 100, or 1,000), but make sure the total equals 100% ownership.
- Common practice: Start with 100 shares to simplify percentage calculations.
- Value Per Share:
- Set the nominal value (e.g., £1 per share). This determines the company’s initial share capital.
- Example: Issuing 100 shares at a value of £1 each will result in a share capital of £100.
- Ownership Percentage:
- Divide shares among shareholders to reflect their ownership stake.
- Example:
- Shareholder A receives 50 shares = 50% ownership.
- Shareholder B receives 50 shares = 50% ownership.
- Voting Powers:
- Shares usually come with voting rights proportional to ownership.
- Example: A shareholder with 50% ownership has 50% of the voting power.
FAQs You Might Have:
- Can I add more than one Shareholder or Director?
- Yes, it is possible to include multiple Directors and Shareholders. Each must provide their full name, residential address, and nationality.
- Can a Director own no shares?
- Yes, Directors can manage the company without owning shares. • Shareholders hold ownership of the company, while Directors manage its operations.
- Who should be the PSC?
- Any individual who holds 25% or more of the shares or voting rights. If no one meets this threshold, you’ll declare no PSC.
- Can I change the Shareholders later?
- What if I want to keep control of my company?
- Allocate at least 51% of the shares to yourself. This ensures majority voting power in key decisions.
- Is there a limit on the number of shares?
- No, you can issue as many shares as needed, but you must maintain clear records of share allocation.
Step 8: Set Up Legal Documents
- Choose your Memorandum & Articles of Association:
- Standard Template: Pre-approved under the Companies Act 2006.
- Custom Template: Upload your bespoke document.
- Confirm your selection and move ahead.
Step 9: Explore Business Essentials
FormationsHunt goes beyond company formation by offering valuable business tools:
Select the services you need or proceed directly to the summary.
Step 10: Review and Submit Your Application
- Review all the details you’ve provided, such as:
- Company name.
- Officer and shareholder information.
- Registered office address and SIC code.
- Download a summary of your application for your records.
- Confirm everything is accurate and submit your application to Companies House for approval.
Step 11: Delivery and Partner Services
If your package includes document delivery, provide the necessary address details for hard copies. You can also clear dues for any added partner services at this stage.
Step 12: Submit Identification Documents
To comply with UK regulations and ensure the successful registration of your company, FormationsHunt requires valid identification and proof of address. You can mail them to contact@formationshunt.co.uk. A list of valid documents is mentioned below:
The Proof of Identity (Please submit any one of the following documents):
- A copy of valid, non-expired passport
- Current driving license
- National identity card showing the applicant's name and photo
- Home Office-issued residence permit
- State identity card
The Proof of Address (Please submit any one of the following documents):
- A utility bill (gas, phone, electric, or water bill issued within the last three months)
- Council tax bill for the ongoing council tax year
- Bank statement or Credit Union statement
- Mortgage statement from an accredited lender for the entire previous year.
- Tax demand letter
- Tenancy agreement for the current year or council/housing association rent card
If you have any questions or need assistance, feel free to connect with us via chat options available on our website or WhatsApp. We’re here to help every step of the way.
What is Our Online Company Manager?
The Online Company Manager is a powerful tool offered by FormationsHunt to simplify the management of your business after its formation. This innovative platform provides an all-in-one solution to handle your company's essential compliance tasks and updates effortlessly.
With the Online Company Manager, you can:
- Access and Update Company Information: Make changes to your company details, such as updating officers, shareholders, or addresses, all in real-time.
- File Confirmation Statements: Keep your company compliant by filing confirmation statements directly through our system.
- Submit Key Documents: Handle filings like VAT registrations and other statutory requirements easily.
- Track Your Compliance Status: Stay informed about upcoming deadlines and ensure you never miss a critical filing date.
- Maintain a Secure Digital Record: Store and access your company documents safely in one place.
The Online Company Manager provides a centralized and intuitive system to streamline your business management needs. By integrating these features, FormationsHunt ensures you have the tools to stay compliant, organized, and focused on growing your business.
Know a little more about the options you get with your Online Company Manager and its utilities:
- My Details
This section allows you to manage and update your personal profile information.
Usability:
- Update contact details, including your email address and phone number.
- Ensure accurate records for communication and service updates.
- Add or edit your account preferences for a personalized experience.
- My Companies
Manage all the companies linked to your FormationsHunt account in one place.
Usability:
- View key information like company names, incorporation dates, and statuses.
- Access tools to update officers, shareholders, and other critical details.
- Quickly file required documents such as confirmation statements or annual returns.
- My Order History
Keep track of all your purchases and services availed from FormationsHunt.
Usability:
- View a detailed history of your orders, including formation packages and additional services.
- Track the progress of ongoing orders, ensuring timely completion.
- Download digital copies of documents associated with specific orders.
- My Invoice History
An organized record of all your invoices for purchases and services.
Usability:
- Access and download past invoices for bookkeeping or financial records.
- Ensure transparency in billing and payments for compliance purposes.
- Keep track of expenses for tax reporting or accounting needs.
- Import a Company
Add existing companies not originally formed through FormationsHunt into your account.
Usability:
- Manage all your companies in one platform, regardless of where they were formed.
- Import company details seamlessly and enjoy the same management features.
- Simplify compliance and documentation for companies formed elsewhere.
- Service Renewals
Stay updated on services requiring periodic renewals, such as registered office addresses or directors’ service addresses.
Usability:
- View a comprehensive list of services nearing expiration.
- Renew essential services directly through the platform to avoid disruptions.
- Receive reminders and manage recurring payments efficiently.
This user-friendly platform is designed to save you time, reduce stress, and ensure your business operations remain smooth and compliant. Whether you're managing a single company or multiple businesses, the Online Company Manager is your trusted partner for hassle-free administration.
What Happens Next?
Once your application is submitted, FormationsHunt will:
- Process your documents with Companies House.
- Notify you as soon as your company is incorporated.
- Deliver all official certificates and documentation.
Why Choose FormationsHunt for Company Registration?
FormationsHunt simplifies the company registration process, offering:
- Instant name availability checks.
- Comprehensive and affordable packages.
- Add-ons like necessary services like PAYE, VAT, GDPR registration, address services, branding tools, etc.
- Professional guidance to ensure your application is approved without delays.
- With outstanding customer ratings, FormationsHunt is trusted for its reliability, efficiency, and seamless service experience. Check our Trustpilot and join our happy customers.
Get Started Today!
Starting your business is just a few clicks away. Visit FormationsHunt and begin your company formation process today to Create A Limited Company. Whether you’re a UK resident or an international client, FormationsHunt has tailored solutions to meet your needs.