When setting up a business in the United Kingdom, there are several models on which to base it. Most common is the structure of the sole trader. In this model, the finances of the company are not tied to personal finances. This is why another desirable business structure is a limited liability company. It is referred to as limited because personal finances are unrelated to business finance. That, and shareholders assume no responsibility for debts that the business takes on. There are some things to know about setting 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.
Companies House must also receive the yearly accounts regarding your company. These accounts will accompany an Annual Return, abbreviated AR01, which provides timely information about the company. Filing this form requires a fee. Annual profits and other taxable income your business experiences must be brought to the attention of HMRC. Finally, a corporation tax return must be submitted, and liabilities must be paid on inside of nine months.
You will also need to decide upon the type of limited company you will form. Some of the main types include private companies limited by shares, private companies limited by guarantees, and public limited companies. Those limited by guarantee do not possess shareholders, while the company must be that of public limited in order to trade on the stock market.
It is not too terribly hard to set up a limited company. Of course, the number of forms and attention you must pay to them can become tiresome, but that has more to do with registration so that you may conduct business legally. Most of the hard work is decided in the preliminary phases, such as what you want to sell, what type of limited company you will be (shares, guarantees, or public), and what kind of directorship you will utilize. After the paperwork is complete, it is time to start up the business.
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.
Companies House must also receive the yearly accounts regarding your company. These accounts will accompany an Annual Return, abbreviated AR01, which provides timely information about the company. Filing this form requires a fee. Annual profits and other taxable income your business experiences must be brought to the attention of HMRC. Finally, a corporation tax return must be submitted, and liabilities must be paid on inside of nine months.
You will also need to decide upon the type of limited company you will form. Some of the main types include private companies limited by shares, private companies limited by guarantees, and public limited companies. Those limited by guarantee do not possess shareholders, while the company must be that of public limited in order to trade on the stock market.
It is not too terribly hard to set up a limited company. Of course, the number of forms and attention you must pay to them can become tiresome, but that has more to do with registration so that you may conduct business legally. Most of the hard work is decided in the preliminary phases, such as what you want to sell, what type of limited company you will be (shares, guarantees, or public), and what kind of directorship you will utilize. After the paperwork is complete, it is time to start up the business.
