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Steps to form a company a company

The procedure of forming a business is straightforward...

1. Decide on a company name.

The first step in forming a limited business is to see if the name you want is available. You can do so by entering the firm name into our homepage's company name search box. If the name you like is already taken, you can change it and use the search tool again until you find a name that is available.

Consider anything that best describes your business operations or even your organization's basic principles when choosing a company name.

We also recommend seeing if the relevant domain name for a company website is accessible. It's critical that your website domain and company name are identical, as this will make it much easier for potential clients to find you online.

2. Choose a bundle

We provide four standard formation packages: one for businesses limited by shares, one for firms limited by guarantee, and one for forming a Limited Liability Partnership.

Choose the bundle that is most suited to your company's size and needs.

3. Make a payment

Proceed to the checkout page, where you can add some extra services to your order before paying with a debit or credit card.

Following payment, you will receive a purchase confirmation email, login information for our Online Company Manager, and a receipted invoice.

4. Fill in the information about your business.

To finish your online company incorporation application, you'll need to set up 5 minutes. Your registered office address, as well as the names and addresses of all company directors and shareholders/members, will be requested.

Please see our Company Formation Checklist for more information on what you should have on hand.

What happens after that...

After that, your application will be sent to Companies House for review.

Companies House typically takes 3 to 6 working hours to process a new business application; however, this is dependent on the workload at Companies House, and it might take longer at times.

We will email you your company documentation, VAT invoice, and Webfiling Authentication Code once your company has been incorporated. Details about your free.co.uk domain name will also be given. Printed documents will be mailed to you within 24 hours if your order contains them.

Please contact us at 020 3665 0100 if you have any questions.

Information Required To Setup A New Company:

You'll need the following information on hand.

1. Registered Office

This is your company's official address, and it must be a complete postal address in the country where it was founded. A PO Box Number is not acceptable.

This address will be used by Companies House and HMRC to distribute any statutory company mail, and it will be made public.

2. Commercial Activity

Companies House must be informed of your new company's business activities. This is accomplished by selecting a SIC code (Standard Industrial Classification code), which classifies and specifies business activity.

Our online business formation procedure includes a SIC code search feature; however, you may want to look up your firm's SIC code in the SIC code list before starting your order.

3. Director's Information

  • Name in full
  • Date of Birth (must be at least 16 years old)
  • Occupation
  • Nationality
  • Address of residence (not on the public register)The location of the service (residential or other address)

4. Information on Shareholders

A Person with Significant Control is a shareholder in a company (PSC)

  • Name in full
  • Year of Birth
  • Address of residence (not on the public register)
  • The location of the service (residential or other address)
  • Nationality,
  • Control's nature (eg. The person holds more than 50 percent to 75 percent of shares.)
  • Three Points of Security (these act as an online signature)
  • The first three letters of your mother's maiden name, the first three letters of your father's surname, and the first three letters of your hometown

5. Information on Shareholders

If the shareholder isn't a PSC (Person with Significant)

  • Name in full
  • Year of Birth
  • Address of residence (not on the public register)
  • The location of the service (residential or other address)
  • Nationality
  • Three Points of Security (these act as an online signature)
  • The first three letters of your mother's maiden name, the first three letters of your father's surname, and the first three letters of your hometown

6. Secretary Information (Not Compulsory)

  • Name in full
  • Date of Birth (must be at least 16 years old)
  • Occupation
  • Nationality
  • Address of residence (not on the public register)
  • The location of the service (residential or other address)

7. Details of the Person with Significant Control (PSC)

If the individual is not a director, shareholder, or secretary of the company,

  • Name in full
  • Year of Birth
  • Household Address (not on the public register)
  • Address of the Service (residential or other address)
  • Nationality
  • Control's nature (eg. The person holds more than 50 percent to 75 percent of shares.)
 

A step-by-step guide to forming a limited liability partnership (LLP).

How to Start a Business

The procedure of forming a limited liability partnership, or LLP, is fairly easy. You fill up an application and pay a fee, then submit it for approval and begin trading as soon as possible.

Using the internet services of a formation agency like CompanyFormation365 is the quickest, easiest, and most common way to achieve it. We may offer online company formation packages for private companies limited by shares or guarantee, as well as Limited Liability Partnerships, as an approved Companies House eFiling partner.

The entire procedure is done online, so there's no need to sign or mail anything, and filling out the application form simply takes a few minutes. Companies are usually formed in 3 working hours or less, depending on the Registrar's workload on that particular day.

You can also register with Companies House using their online or postal forms, but this takes a lot longer - anywhere from 24 hours to 10 days.

To form a limited-by-shares business, you'll need the following:

  • One shareholder and one director are required. (These responsibilities can be filled by a single person, a group of people, or a corporation.)
  • An address for the registered office. (For receiving official communication from HMRC and the Registrar)
  • Persons in Positions of Significant Control (PSCs)
  • Each director, shareholder, and PSC has a service address.
  • A formal name for your limited liability partnership (LLP). (It can't be the same as, or very close to, the name of another business.)
  • At least one share must be issued to each shareholder.
  • To characterise the nature of your company's trade activity, use the Standard Industrial Classification (SIC) code(s).

To form a limited-by-guarantee business, you'll need:

  • One director and one guarantor are required.
  • A registered office is a location where documents are kept.
  • Persons in Positions of Significant Control
  • Each director, guarantor, and PSC has a service address.
  • A distinct company name.
  • SIC code(s) to identify the type of your business's trading operations

You won't have to issue any stock, but each guarantor will have to commit to paying a set amount toward the company's debts.

  • To form an LLP, you'll need the following items:
  • A minimum of two people are required (partners)
  • An address for the registered office
  • Persons in Positions of Significant Control
  • Each member's service address as well as the PSC
  • SIC code(s) to indicate the nature of your LLP's trading activity official LLP name

As soon as your company is set up, you will receive your documentation via email. You should keep these in a safe place because you will need them on several times.

Picking a name for your business

The company name must not be "same as" or "too similar" to an existing name, and it must not be insulting or deceptive in any manner.

CompanyFormation365 has an online tool that you can use to see if your selected company name is available. Simply enter the name you want to use, and our advanced name-checker will tell you if it's available and legal. If it's not available, change it and try again until you find a name that works.

With the exception of some non-profit limited by guarantee firms, all company names must finish in 'Limited' or 'Ltd.' The words 'Limited Liability Partnership' or 'LLP' must appear at the end of all LLP names.

Limited liability companies (LLCs)

A limited company is a firm that has been registered with Companies House in order to exist as a separate legal entity from its owners. A company's liability might be limited by shares or by guarantee. The owners' personal finances are shielded by 'limited liability,' which means they are not liable for corporate obligations beyond what they have invested in the firm or are promised to pay.

A private corporation limited by shares is the most common type of business. They are owned by shareholders and established with the goal of generating earnings that can be given to the shareholders. Shareholders' liability is limited to the value of their shares.

For non-profits and charities, a private corporation limited by guarantee is a popular business form. There are no shareholders or shares; they are owned by guarantors. Guarantors' responsibility is restricted to the amount they promise to pay toward corporate debts.

Partnerships with Limited Liability

A Limited Liability Partnership, or LLP, is a corporate structure that falls between between a corporation and a typical partnership. LLPs have the same flexibility as a traditional commercial partnership, but they are registered as legal individuals with Companies House. Because the LLP is responsible for its liabilities, LLP members (partners) are protected by limited liability for debts.

LLPs are a common corporate form among professionals such as lawyers, accountants, surgeons, and dentists because they allow them to keep their preferred structure while limiting their responsibility.

Concerning the Companies House

Companies House is the UK Registrar of Companies and a Department for Business, Innovation and Skills Executive Agency. Companies House is responsible for creating and dissolving companies, acquiring and keeping information about them, and making it available to the public as a registry of corporate information.

Any corporation or limited liability partnership (LLP) wishing to do business in the United Kingdom must register with Companies House in one of the three jurisdictions: England and Wales, Scotland, or Northern Ireland. Any changes to a company's details must be reported to Companies House in order for the corporate information on public record to be accurate.

Sole trader vs. limited company

In some aspects, a limited corporation varies from a lone trader business. You can shield your personal money from being used to cover any business debts by forming a company - this is not feasible if you run a business as a single trader because there is no legal line between business and personal finances.

A limited company can also help you elevate your company's standing and project a professional, corporate image. Prospective clients, suppliers, and financiers will be very interested in this.

There are also a number of tax benefits to operating a firm as a limited company. Limited companies pay corporation tax on business profits at a flat rate of 20%, though directors may have to pay Income Tax and National Insurance on their income if it exceeds a certain amount. Sole traders pay Income Tax at varying rates on all business profits; limited companies pay corporation tax on business profits at a flat rate of 20%. Limited liability firms also offer far more tax planning options than sole proprietorships.