- Setup Limited Company Uk is an essential process for those looking to establish a business in the United Kingdom and start trading legally and safely while optimizing tax benefits. Forming a limited company is relatively straightforward and provides significant advantages, such as separating your personal finances from business operations, offering protection in case of financial challenges. Once you register company in UK, you will enjoy the peace of mind that comes with having a formal business structure that safeguards your personal assets and ensures compliance with regulatory and legal requirements.
Why to setup limited company in Uk?
- There are several reasons to set up a limited company in the UK. Firstly, it establishes your business as its own legal entity with its own bank account, separating your personal finances from your business finances. This structure limits your liability to the face value of your share in the business, protecting your personal assets in case of business failure. Transitioning from sole trader to limited company status can lead to tax benefits, as you pay corporation tax on profits instead of income tax. Additionally, limited companies can access private equity funding, employ staff through PAYE, and enhance professionalism, making it easier to sell the business later.
Steps to setup limited company in UK
Step 1: Decide on a company name
- To begin setting up a limited company in the UK, Tetra Consultants will handle the registration of your chosen company name. We first verify its availability through Companies House’s register to ensure the name has not already been taken by another entity. If the name you desire is unavailable, we will assist you in selecting an alternative.
- Our services include name reservation to help secure your preferred name, ensuring compliance with naming regulations and restrictions such as avoiding offensive or sensitive terms and ending the name with “Limited” or “Ltd” as required. In specific cases like registered charities, exceptions may apply. Additionally, we offer international trademark registration services to provide global recognition and legal security to your brand name.
Step 2: Comply with pre-requirements
Once you start to setup limited company in UK you will be required to comply with various requirements which are as follows:
- At least one director is required, who must be at least 16 years old and does not need to reside in the UK.
- At least 1 shareholder without residency requirements.
- Must have a registered office in UK.
- Maintaining specific registers which includes information regarding Register of Members, Register of People with Significant Control (PSC), Register of Directors, Register of Directors’ Usual Residential Addresses, and Register of Secretaries.
- Must have a minimum of £50,000 in share capital.
These requirements can be completed with the help of Tetra Consultants for seamless setup of limited company in UK. We can also provide nominee director and shareholder services for your company in UK if required.
Step 3: Appoint a company secretary
- Further, after ensuring compliance with all the necessary requirements, Tetra Consultants will facilitate the appointment of a company secretary if necessary, in accordance with the company’s articles of association. Although it is not mandatory for private limited companies to have a designated company secretary, Tetra Consultants can guide you through the decision-making process and provide assistance with amending the articles if needed. We can also help you manage essential company secretarial duties, ensuring smooth operation and regulatory adherence.
Step 4: Determine share capital
- Moving to the next step, Tetra Consultants will guide you in establishing the share structure of your limited company. This involves determining the number of shares, their value, and the initial share capital you wish to invest. We will help you allocate shares among shareholders and define their roles, including the option to appoint directors.
- Typically, each share grants one vote, and any shareholder who owns at least 25% of the company’s shares is recognized as a ‘person of significant control’.
Step 5: Collect the required documents
- Moving forward, Tetra Consultants will assist you with the legal drafting of essential documents required for company formation. This includes preparing the memorandum of association, a signed legal statement from all shareholders agreeing to establish the company, and the articles of association, which outline the official rules for operating the company as agreed upon by shareholders, directors, and company officers.
- We will also help you complete form IN01, which contains all relevant company information such as the company name, SIC code, registered office address, director and officer details, share capital allocation, and the identification of significant control persons.
Step 6: Register with Companies houses
- Further, Tetra Consultants will proceed to register all required information with Companies House online, streamlining the process for you. During registration, we will also assist you in registering for corporation tax with HMRC simultaneously. If you encounter any difficulties at this stage, our team of experts is here to offer support, just as you might receive from a solicitor, accountant, or company formation agent.
Step 7: Bank account opening
- As the final step in setting up a limited company in the UK, Tetra Consultants provides corporate bank account opening services. This allows you to establish a fully operational bank account for your company within four weeks of incorporation.
Post registration requirements to setup limited company in UK
- After registering your company with Companies House, there are several post-registration requirements to ensure your business runs efficiently. Tetra Consultants can assist you with various services such as accounting, tax obligations, legal drafting, and other business needs.
Record-keeping:
- We guide you on maintaining necessary records for your limited company and accounting to avoid penalties and potential disqualification as a director.
Business bank account:
- While not legally required, setting up a separate business bank account is advisable. We can facilitate the process to simplify financial record-keeping.
Business insurance:
- Tetra Consultants can help you select appropriate business insurance, including employer’s liability insurance where needed.
PAYE account:
- If you decide to pay yourself a director’s salary, we can help you set up a PAYE account, ensuring compliance with tax and National Insurance obligations.
VAT registration:
- We provide advice on whether VAT registration would benefit your business, even if your annual profits have not yet reached the legal threshold.
By offering these services, Tetra Consultants helps your business remain compliant with regulations and positions you for success.
Conclusion
- To setup limited company in UK is a strategic decision that can lead to long-term success for your business. Tetra Consultants is here to guide you through every step of the process, from registration and legal drafting to managing post-registration requirements such as accounting and tax obligations. With our comprehensive services, you can establish a strong foundation for your company and ensure compliance with all legal and regulatory standards. Let Tetra Consultants help you launch your business efficiently and confidently.
- Contact us to know more about how to setup limited company in UK and our team will revert back in 24 hours.
