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If you have decided that forming a limited company is the way for you to go, there are a few things that you will want to understand. There are some basics to forming a limited company that can help to make the entire process run a bit more smoothly for you.
First, you need to determine if forming a limited company is actually the way for you to go. Most people choose a limited company formation because it offers some protection against risks to their homes and other assets when the business fails. With a limited company, your liability is limited, meaning that much of your personal assets will be protected from any business debt that may be incurred. Of course, there are other benefits to forming a limited company, such as protection for the trading name that you choose, credibility, and tax relief.
There are basically only four major requirements that you will need to meet in order to form a limited company. You will need to have a registered office address in the region where you register your company, one or more directors who will handle certain legal tasks for your company, and you will need to file an annual return with Companies House each year and ensure that you keep all of your company register information up to date at all times. You no longer need to appoint a company secretary, although many companies choose to do so to take some of the responsibilities off of their directors.
You will need to become familiar with a few forms that are required of your limited company. The Form AP01 is signed by the company director or directors and filled in with names and addresses of those directors. This form is required to be sent to Companies House within two weeks of your company receiving it. Share certificates serve as proof of ownership in your company. These certificates will need to be completed correctly and then given to the shareholders.
Your company formation includes a memorandum and articles of association, both of which will need to be filled out when you first register your company with Companies House or via a company formation agent such rapidformations.co.uk. Once you register through Companies House, you will receive a certificate of incorporation. This, along with other important paperwork, should always be kept up to date and in a safe place. It is required that your company paperwork be kept at your registered company address, so that when your address is visited by the appropriate authorities, you will be able to show the paperwork that they need to see. Also, the bank may ask to see a copy of documents, such as the certificate of incorporation, when you are opening a company bank account and when you are applying for lending.
You can find more information about the process of forming a limited company by visiting Companies House online. Should you choose to incorporate your company on your own, without going through a company formation agent, you can also download needed forms from the Companies House official website.