Introduction
Setting up a limited company in the United Kingdom might seem daunting. But if you find the right guidance and a clear roadmap, it will be more manageable than you think.
When you first set up a business, it is most likely to be as a sole trader, which means you are essentially self-employed.
Therefore, after you have been trading for a while, it might make more sense to set up your private limited company.
Discover everything you need to know to set up a private limited company and how you can set up one in the UK. Without further delay, let’s get started.
Steps To Set Up A Limited Accounting Firm
The steps below will help you set up a limited accounting firm.
1. Select Company’s Name
The name of your limited company needs to be unique and not very similar to the existing company’s name.
Some of the key rules:
- It cannot comprise sensitive expressions or words.
- It cannot suggest a connection with local or government authorities.
- It needs to end with Ltd or Limited.
Therefore, we suggest you check with Company House to ensure the company’s name is correct before proceeding with the registration process.
In addition, you can check the trademarks database to avoid infringing on anyone’s property.
2. Appoint A Director
In selecting individuals for these critical roles, it is vital to consider their experience, skills, and ability to align with the company’s goals.
- Company Director: The company director is responsible for the company’s overall strategic direction. It is crucial to select someone with strong leadership skills, industry knowledge, and a track record of making sound business decisions.
- Company Secretary: The company secretary plays a vital role in ensuring that the company complies with legal and regulatory requirements. Similarly, this position requires an individual with excellent organizational skills and attention to detail.
3. Create Company Documents
To register a company, you will need two key documents:
- The memorandum of association.
- The articles of association.
The memorandum states that the subscribers agree to form the company. On the other hand, the articles outline the rules for running the company, which need to be agreed upon by shareholders, directors, and the company secretary.
Here your company can also opt for standard model articles, but you can draft your own or modify these articles to fit your specific needs.
Regardless of your choice, you need to present both documents which need to be filed with Companies House as part of the registration process.
4. Confirm Records
You will need to maintain a record of all significant details and include its PSCs as well as its accounting records. Thus, these records need to be kept for at least six years.
So, if you plan to venture into an accounting firm, we suggest seeking advice from an expert accountant for limited companies before making a final decision.
5. Register The Company Name
Once you have all the papers secured, it is time to register the company with Companies House officially.
You can do this either online or through postal services. The registration fee accounts for £ 50 for the standard services or £78 if you register on the same day.
For this process, you will need to provide the following:
- Name of the company and registered office address.
- Article of association.
- Details of directors, shareholders, and PSCs.
- Statement of capital and initial shareholdings.
- SIC Codes.
6. Receive Certification Of Incorporation
Once your company is registered, Companies House will issue you a certificate of incorporation.
Therefore, this document is important as it officially confirms that your company exists and includes essential details like your company number and the date of formation.
With this certificate, you can confidently commence trading as a limited company. It’s an exciting step forward!
7. Decide Shareholders
Your company needs to have at least one shareholder who can also be the director of the company.
Shares can be divided among the shareholders. Shareholders typically vote on decisions at directors’ meetings, with one share equivalent to one vote. This is why the majority shareholders have more influence.
Therefore, your shareholders must have more than 25% of the shares in a person of significant control.
Wrapping Up
Thus, now that you will need all the certifications for the registration process, you must connect with the Company House today,
Similarly, follow the above-mentioned steps and make sure that you follow every detail when venturing into an accounting firm.