Whether you’re a freelancer looking to take the next step with your business or a totally new enterprise ready and raring to go, you’re bound to have questions about setting up your limited company.
So here we’ve put together a list of some of the most common queries and answered them. We hope it helps.
Why Should I Set Up a Limited Company
A limited company helps keep your business finances separate from your personal ones. It also means that your company will have a separate legal identity rather than being bound to an individual. There are also some tax benefits as well as the prestige of owning your own company, providing a more professional appearance to prospective clients and potential partnerships. Another benefit is that within a limited company, owners’ liability is capped whereas personal liability as a sole trader is (technically) unlimited.
What’s the first thing I need to do?
The first step is to register your business with Companies House. This is a relatively simple thing to do and can be done online for a very modest price (at time of publishing, it’s £12). The website provides information on what you need to get started and takes you through the process, step-by-step.
Can I name my company whatever I like?
Unfortunately not. For obvious reasons, there are certain restrictions on what you can call your company. For example, if your preferred company name is the same as or too similar to another registered company’s name, you will have to change it. There’s also a rule against registering a company name that’s considered to be offensive.
Do I have to register my limited company at my home address?
No, you don’t. Your company’s registered office address is where all important and official communications will be sent to. But many people, even those who carry out most of their business from home, choose to use a different location for the purposes of their registered office address. The only stipulations of this address are that it’s a real, physical location in the UK and that it is within the same country that the company is registered in (e.g. England, Wales, Scotland). For businesses based in England, we offer this through our virtual office services which you can sign up for online.
What should I do once I have registered my limited company?
Once your business is registered with Companies House, you need to make sure that you register for Corporation Tax. This needs to be done within 3 months of any business activity – be aware that although you may not have launched your business fully, any marketing, rental of office space, buying and/or selling counts as starting your business and late registration may incur a penalty.
If you have any more questions about setting up your limited company or registering your company at one of our business centres, please get in touch on 01727 260 177 or email us here and we’ll do all we can to help you get started.