How to Set up a Company

 reason for setting it up, plan for how to run it, owner’s name , and select who the company manager is, e.g. the directors and company secretary, if you decide to have one.

Then you need to select what route to utilize to register a limited company, appoint an accountant, or contractor accountants, open a new bank account and maybe register for VAT. Once you’ve find out these details, your limited business is prepared for trade.

When first deciding on your company name, you can decide to either call your company a name of your choosing, if that name is available, or you can buy an ‘off-the-shelf’ company that has already been incorporated with a name.

By setting up a limited company for your business, you get a professional image and a mark of legitimacy over other businesses. Anyone can come up with a business name and call themselves a business. These are sole proprietorship businesses. But setting up company for your business takes commitment. While the costs are minimal, you are setting up a legal vehicle to operate your business. Most scam artists and non-committed business owners would not go through this effort.

Companies want shareholders, in any case one director and a position of rules, called the Memorandum and Articles of Association, in order for Companies House to set up a company business. As a contractor, your shareholders will normally be you, and possibly your spouse. Most contractors decide to be a director of their contractor ltd company, and you can also include your spouse as a director and company secretary.

Your company will need a registered office to which all official notices and correspondence can be sent. That address is typically your accountant’s office address, but you may also use your home address if you prefer.

Which route to choose for Company Formation?

You have a number of incorporation service provider options from which to choose to incorporate your UK limited company. The most common options include:

• Direct via Companies House • From an online incorporation service • A formation agent •Contractor accountant

Your option of service provider will depend on your first choices and how you feel about managing the company formation process yourself. Each preference attracts different costs. Going direct is normally the cheapest option and using a professional the most expensive, although many contractor accountants will include company incorporation as part of their service.

You’ll need to provide your company name, company registration number, registered office address and VAT registration number to your agent or client so that you can start earning contracting fees as soon as possible.