As per the statistics, Limited Liability Company (often called limited company) is a very popular setup in the UK. In fact, it is the second most popular business structure (first place goes to sole proprietorship) in the UK as of today. When it comes to a limited company, personal finances of the respective business are considered to be a separate entity and hence the liabilities of the owner(s) and the directors are limited.
If you expect to open a limited company, you should adhere to some fundamental guidelines; the process of registration, however, will be easier if you opt to go for a professional vendor that facilitates company formation.
The process to open a limited company
In the UK, Companies House is the centre for all the limited companies when it comes to registration and many other processes. Companies House maintains a registry of all the registered companies within the UK. One of the primary steps of starting a business in the form of a limited company is getting it (the business) registered with the aforesaid Companies House.
When the correct procedure is implemented, you will not find it difficult to open a limited company. You can choose to do it either by yourself or seek the assistance of a company formation agent. If you have professional accountants working for your company, you can even check with them if they can assist you. With the correct steps, the registration process can be completed within a couple of hours.
What sort of documents you need to open a limited company?
To register a particular company and start functioning as a limited company, you will need to prepare some important documentation and submit them to the Companies House without fail.
- MoA (Memorandum of Association)
Memorandum of Association is the document that includes the information (such as names and addresses) of the subscribers who help forming the limited company.
- AoA (Articles of Association)
This is the document that explains the powers of directors and the rights of all the shareholders.
- Form IN01
Form IN01 comes with information of the directors, company secretary (if any). Further, this document includes information such as the details of the share capital and the shareholders particularly if the respective company is limited by the shares.
Depending on the type of the limited company the amount of information you should provide may differ. In fact, Limited companies come in different forms. Nevertheless, Private Limited Companies are the most common type particularly for small businesses in the UK. Although these companies can have any number of share holders, as per the regulations, these companies cannot offer their shares to the public.
The advantage of hiring a professional company formation agent to attend this task is that they already have templates of all the above mentioned documents; it is a matter of filling the required information accordingly without wondering. It will be assistance for you to save a considerable amount of time and paperwork.