How Do I Form a New Company?

How do I … form a private limited company?

Context

this briefing assumes that you have decided to start a new business and that you are going to operate by setting up a Private Limited Company.

Step 1: Ready to register

You’ve come up with a brilliant business idea, now comes the tricky bit. To launch the new venture you need to form and register a company. To set yourself up as a Private Limited Company under the Companies Act 2006 you must decide the following:-

• The name of your new company.
• Who will be the director(s) and company secretary (if you choose to have one).
• The location of your registered office.
• How quickly you want to begin trading.

Step 2: Off the shelf or build from scratch

You have 2 options; either form a new company from scratch, or buy an off the shelf company, which can be obtained from Company Formation agents for a fee. The easiest and quickest solution is to buy an off the shelf company. For a further small fee you can change the name – this can take up to 3 weeks. If you need any help, a solicitor, accountant or company formation agent will provide assistance for a fee. Whichever option you choose, you can contact Companies House and request a starter pack, or you can talk to us and we can form the company from scratch for less than you think. Contact us on 020 8771 7755 or click here to contact us online

Step 3: Submitting your registration

If you decide to form a new company from scratch, your registration submission to Companies House must include:-

• Memorandum of Association – must include the company name, address of registered office and the objective of the company.
• Articles of Association (except where you adopt model articles in their entirety) – must include details of how the company will manage its internal affairs.
• Form IN01 – includes specific personal details of all company officers and the address of the registered office.
• Additional information if your application includes a prescribed or sensitive word or expression.
• The fee (£20 or £15 for electronic incorporation).

It can take up to5 days to register but you can use a fast track process, which allows you register in 1 day. It costs more but it could be worth it!

Step 4: What next

The Companies Act requires a company to display its name at its registered office, other places of business and on all business communications.

A company must also display on all its business letters, order forms and websites:

The part of the United Kingdom in which the company is registered (i.e. England and Wales, or Wales, or Scotland, or Northern Ireland);

• the company’s registered number;
• its registered office address;
• if a company is exempt from the requirement to use “limited” in its name, the fact that it is a limited company;
• if the company is a community interest company which is not a public company, the fact that it is a limited company;
• if it is an investment company as defined by section 833 of the Companies Act 2006, the fact that it is this type of company;
• if it is a company which has chosen to display its share capital, it must display the amount of paid up share capital.

If anyone with whom the company deals in the course of business makes a written request for the address of its registered office, the address of any place of inspection, or the type of company records kept at the registered office or inspection place, then the company must provide them with that information, in writing, within five working days.

A company does not have to state the directors’ names on its business letters unless it chooses to do so. However, if it does decide to include the names then it must state the names of all its directors.

As a director or company secretary, you have legal responsibilities. These include submitting a range of financial and other information at specified times to Companies House.

Step 5: “Need To Do”

You need to:

• Decide on your company name, who its officers will be and where the registered office is going to be located.
• Choose between off the shelf or forming from scratch – get help if you need it.
• Get a starter pack from Companies House.
• Include all relevant information and forms in your application.
• Before trading, make sure you have complied with your legal responsibilities.

Key Messages

By forming a Private Limited Company you will be taking on a number of legal responsibilities. The process of forming a company can take anything up to 5 days but you can fast track and take other steps to speed things up such as same day registration for an additional fee. Contact us for information

Click Here to start Registration of your New Company