Setting up a limited company - what you need to know

The first step

Naming your limited company is one of the first steps you'll need to take when setting up your business. But it's not as simple as just coming up with a name you like - you also need to make sure that the name you choose is available. Unfortunately, many good names are already taken, so you may need to get creative.

There are a few things to keep in mind when choosing a name for your limited company. Firstly, it should be something that is easy to remember and pronounce. Secondly, it should be reflective of what your company does or what industry it belongs to. And finally, it shouldn't be too similar to another company's name. With these guidelines in mind, you should hopefully be able to come up with a fantastic name!

Getting set up...

Once you've got your limited company set up, there's a bit of paperwork and administration that goes with it. Part of this is making sure you choose the right Standard Industrial Classification (SIC) code for your business activity. This is used by Companies House and HMRC for statistical purposes, so it's important to get it right.

There are lots of different SIC codes to choose from, so it's worth taking some time to research which one is right for your business. You can always change your SIC code at a later date if you need to, but it's best to get it right from the start. limited company If you're not sure which code to use, you can always speak to an accountant or your advisor.

Shareholding

As the owner of a company, it is important to understand who your shareholders are and what role they play in the business. Shareholders are the people who own the company and have voting rights on decisions made about the business. They may also be involved in the management of the company. shareholder can be an individual, a group of people, or an organisation. The number of shares held by shareholders can vary, and this affects their voting rights. For example, a shareholder with a large number of shares may have more influence over decisions made about the company than someone with only a few shares. It is therefore important to consider carefully who you want to be shareholder in your business. Get shareholder agreement from each shareholder to avoid any misunderstandings or conflict later on.

Being compliant - the boring stuff

If you're thinking of setting up a limited company, it's important to be aware of the additional compliance requirements that come with this business structure. Firstly, you'll need to prepare and file statutory accounts with Companies House every year. This is a detailed financial report of your company's performance, which must be audited by an accountant. You'll also need to submit a corporation tax return to HMRC, detailing your company's taxable profits. Failure to meet any of these compliance deadlines can result in hefty fines, so it's important to be organised and stay on top of your paperwork. However, the compliance burden is often worth it for the limited liability and other benefits that come with operating as a limited company.

Need some help setting up your limited company? Lucky for you, we do this on a daily basis! Contact us to see how we can help support you and your business.