Deciding to set up your own limited company is a big decision, one that could be the start of a whole new life for you. But, before you decide to take the plunge, it’s a good idea to do some research about the practical requirements of setting up your own private limited company.
In accordance with the Government’s June 2016 updates to the Small Business, Enterprise and Employment Act, here’s a list of things you need to provide to Companies House when you decide to start your own company.
Your Company Name
This needs to be unique so it’s a good idea to check that your chosen business name isn’t already in use – to do this, you can search the Companies House Register. You should also make sure that your choose a name that you feel best describes your business and that you’ll be happy to trade under in the coming years. There are also some Government guidelines that you must adhere to when incorporating a new company, which are available here. If you choose to set up a limited company, then your company name must end with limited or Ltd.
A Registered Office
Companies House require an official address for your new company which must be based in the UK. This address does not need to be the same as the address that you run your business from as long as the company directors have access to the statutory mail (i.e. all official correspondence from HMRC and Companies House etc.). If you run your company from home and would rather not list your residential address with Companies House, you could sign up for a registered office address with us. At The Workstation we offer various virtual office packages including a registered office service for £60 per year which allows you to register your business with Companies House using one of our prestigious business centre addresses with statutory mail forwarding included.
Name(s) of Your Company Directors
At least one person is needed to be listed as the Director of your company and they will be responsible for the running of your organisation. When you register your company you will need to provide the following information about your Director(s):
Date of Birth
Country of Residence
Just as the registered office information you provide, you may use a residential address or a non-residential address and there is no requirement for you to visit or work at this site, as long as you are able to receive all official correspondence through it.
Name(s) of Shareholders
Your shareholders are the people who own the company. It may be one person acting as the director and shareholder or there may be many shareholders, depending on how your company is set-up. When you appoint a shareholder you will need to provide the following information:
Their allotted shares in the business
Standard Industry Classification Code
The Standard Industry Classification Code or SIC code is a 5 digit number that represents the area of business or industry that your company will be working in. There are hundreds to choose from and you can view them all here.
People with Significant Control
Following the Small Business, Enterprise and Employment Act 2015, this part of the registration process has been introduced to encourage greater transparency about who really owns and runs a company. People with Significant Control or PSCs are defined as the following on the gov.uk website:
A PSC is an individual who meets one or more of the following conditions in relation to your company:
- Directly or indirectly holding more than 25% of the shares,
- Directly or indirectly holding more than 25% of the voting rights,
- Directly or indirectly holding the right to appoint or remove a majority of directors,
- Otherwise having the right to exercise, or actually exercising, significant influence or control,
- Having the right to exercise, or actually exercising, significant influence or control over the activities of a trust or firm which is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual.
Memorandum & Articles
These documents will outline how your company will be run; they will define the constitution of your company, the responsibilities of the directors, they will state how the company will be run and outline shareholders control over the board of directors. For more information about this, go to www.gov.uk/limited-company-formation/memorandum-and-articles-of-association.
If you’re ready to take the next step towards setting up your own private limited company, come and talk to us at The Workstation for information about how we can help get you up and running. Call us on 01727 260 177 or email email@example.com.