Digital Company Formation Package - Kent Formations

Limited Company Formations  


Limited Company Types

Limited, LIMITED, Ltd, LTD 

The above acronyms refer to companies limited by shares and account for the majority of private companies registered in the UK. This company structure is particularly popular as the company exists as a separate legal entity from the individual owner. While setting up your company you can choose in which format you would like the (Limited or Ltd) to show. 

A company Limited by shares means the owners have limited financial liability. Therefore their personal finances are protected if the company encounters financial problems. 

A limited liability company is a major benefit over being within a sole trader structure whereby the sole trader is liable for all liabilities of a business. This section provides all of the common need-to-know information about private companies limited by shares,

Why Setup a Limited Company

  • A limited by shares company is legally separate from the people who run it
  • Has separate finances from your personal ones (Limited Financial Liability) - Shareholders' personal finances are protected and they are only responsible for company debts up to the value of their shares within the company. 
  • has shares and shareholders
  • can keep any profits it makes after paying tax
  • The Limited Company name is protected and cannot be used by any other limited company or LLP.
  • Companies limited by shares allow for strategic financial planning for tax. Profits can be distributed by way of salary and dividends, and this can make it very tax effective. (We advise seeking advice from a chartered accountant) 
  • Shares in a Limited company can be sold to other individuals, such as investors.

Incorporating a company limited by shares is incredibly simple and almost anyone can do it. Due to the limited financial liability of this structure, there is relatively little risk in doing so as well. You can read more about starting a business on our blog page  


How the registration process works:

  • Press Start
  • Choose your company name including LTD or Limited at the end.
  • Go through initial checkout by entering payment details
  • Choose your company type Limited by Shares (most common), Limited Liability Partnerships (A dentist practice for example), Limited by Guarantee (A charity for example) or PLC (One Day!)    
  • Choose your company type (SIC Code) this lets companies house know what the intended purpose of the company is for i.e a building materials supplier, Local Charity, etc. 
  • Enter your company registered address, this is the address which will show on companies house and across the web when anybody searches for the limited companies details. We offer address services and these can be selected during this process from £9.99+ vat per annum
  • Choose a trading address, this is the everyday trading address of a business that must be shown on your website, business card, letterhead, for example, this address can be different or the same as your company registered address.
  • Appoint Directors and Shareholders - You must appoint a director, shareholder, and person with significant control over the business, these are often the same person but can be different, for example, if you have shareholders within the buisness. All individuals are required by companies house to show a service address (normally your home) which will be used for correspondence of documents and shown on companies house and across the web. We offer address services and these can be selected during this process from £9.99+ vat per individual per annum
  • Allocate shares, you can allocate as many shares and at whatever price you value the business at these shares are classed as paid or unpaid shares. It is common for a new business to allocate 100 shares priced at £1 per share. Each shareholder can be allocated the required number of shares. 
  • Articles of Association, these are in essence the rules or policies with which your company conducts its business. We have the option to choose a standard set (most common) but also allow you to upload a customised set of AoA's, maybe written by a lawyer due to investment from a VC or other type of investor.  

Banking partners

We offer new businesses a convenient fast way to open a business bank account and these banking partners such as Barclays will show on the final pages of registration. After completion, we will send your details directly to the partners you have chosen and they will contact you directly to complete your setup.   



 

Get Started Here

|  From - £12.99 +vat