Setting up as a Limited Company can be daunting to begin if you aren’t sure exactly what it involves. However, here at Sidekick we want to assure you that it isn’t as hard as it seems, and we are on hand to guide you to through the process. If you become a Limited Company, you get to define your brand and run your business in the most-tax efficient way; making it one of the smartest ways to get paid for the work you do. If you’re ready to take the plunge and set up as Limited Company, follow these simple steps to making it!
1. Choose which type of limited company to set up
Once you’ve decided to set up a limited company, you have to choose which type you wish to form. The two main choices are:
- Private Limited Companies (LTDs)
- Public Limited Companies (PLCs)
Most freelancers, contractors, start-ups and small businesses will opt for a Private Limited Company, as PLCs must have a minimum share capital of £50,000, at least two shareholders, two directors and a qualified company secretary.
2. Pick your name
This bit is equal parts the most fun and most frustrating part of the whole process for most new limited companies. Much like a web address, your company name has to be completely unique. You can differentiate in a few ways to guarantee a unique name – for example, a limited company name can use either “Limited” or “Ltd.” (i.e. “Sally’s Sandwiches Limited” or “Sally’s Sandwiches Ltd.”). You can find available company names using the Companies House WebCheck service, but with over 1,500 companies formed every day, the availability of your preferred name could be limited (no pun intended).
Need a helping hand? Here are some ways to create unique company names.
3. Set up your limited company
People often think that setting up in a Limited Company formation is the most difficult part of the process, but with Sidekick that isn’t entirely true. When you sign up to our services, we provide you with a free Limited Company Formation within 24 hours of signing up! Our Limited Company Services allow you to view your business financials online anywhere with our FreeAgent powered software, specially dedicated to organising your business finances.
You just need to supply certain personal details to help Companies House identify you as a company director, and you’re good to go. Companies House will often have your limited company formed in a few hours.
4. Complete the incorporation process
Companies House is responsible for all limited company registration in the UK. Their website provides detailed information. The following documents must be completed and returned to Companies House in order to complete the incorporation process. Sidekick will complete these on your behalf:
- Memorandum of Association – limited company name, location, business type
- Form 10 – director’s names, addresses and registered limited company address
- Form 12 – states the limited company complies with terms and conditions of the Companies Act
- Articles of Association – outlines director’s powers, shareholder rights etc. (this is often provided by the formations company that sets up the limited company).
If you’re ready to set up as a Limited Company, contact us now and get started with our Limited Company Services from just £75 per month!