1. Choose which type of limited company to set up
Once you’ve decided to Open a Ltd Company, you have to choose which type you wish to form. The two main choices are:
Private Limited Companies (LTD).
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 company name
This bit is equal parts the most fun and frustrating part of the whole process for most new limited companies. Much like a web address, your company name must be 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. “Crunch Limited” or “Crunch Ltd.”). You can find available company names using our Crunch Formations company name checker, but with over 1,500 companies formed every day, your preferred name may not be available.
3. Forming a limited company
It’s actually really simple if you’re organized though. With Crunch, you can register online and set up your limited company yourself in about ten minutes, and all for the cost of You just have to supply certain personal details to help Companies House identify you as a company director. These include:
Let them know what type of business your limited company will conduct by submitting a SIC code (Standard Industrial Classification code) for your business. You can select the most appropriate code from the Condensed SIC code list online at Gov. In the UK, it is maintained by Companies House.
Decide what address you want to register your business at. You’ll need to choose your Registered Office Address and provide a service address. We’ve written a separate article about the types of addresses you must provide to Companies House. We also discuss how to avoid potential privacy impacts by not sharing your residential address. Once you’ve done this, 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 registers all limited company registrations in the UK. Their website provides detailed information on How to Open a LTD Company, or you can use a service like Crunch Formations to simplify things.
The following documents must be completed and returned to Companies House to complete the incorporation process. Your company formation agent or accountant will fill out these on your behalf:
Memorandum of Association – limited company name, location, business type
Form 10 – directors' names, addresses, and registered limited company address
Form 12 – states the limited company complies with the Companies Act terms and conditions
Articles of Association – outline director’s powers, shareholder rights, etc.
Well, there are a couple more bits of admin to take care of. In addition, there are those pesky reporting and filing responsibilities you have to stay on top of. First, you’ll need a business bank account for your limited company. We’ve written a handy guide to what to look for in an ideal business bank account. You’ll also need small business insurance to cover you and your business for any work you’re doing.
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