UK Limited Company Formation

Choosing a Company Name

Choosing the right name for your company can dramatically affect its future prosperity. Take the time select a name that will assist and not hinder your business.

‘Same as’ names

You will not be allowed to register a company name which is the same as (or too similar) to an existing company’s name. This is to avoid confusion among consumers and other businesses and so your chosen name must be unique. An example of ‘same-as’ names:

Catering Limited' is the ‘same as’:

• Catering UK Limited (or Ltd);
• Catering.co.uk Limited (or Ltd);
• Catering International Limited (or Ltd)
• Catering Company (Services) Limited (or Ltd)

You can check the availability of a company name quite easily using the Companies House name checker on their website.

Sensitive Names

Some company names are rejected by Companies House on the grounds of certain words being ‘sensitive’. Sensitive words include those that are profanities or are offensive and those which suggest a connection with Her Majesty’s Government or a devolved administration or a local authority or certain specified public authorities.

Please see the Companies House website for an extended list of sensitive words.

Limited or Ltd?

If you are registering as a private limited company then your company name must end with either ‘Limited’ or ‘ltd’. You can choose and both are equally as acceptable.

Company and Website Names – Creating Synergy

Before you decide on a company name you should ensure that a similar website URL address is available. Unity between your physical business and its online presence is essential to help guide your customers to your site/business.

An example would be:

Wimpole House Company Services Limited & http://www.whcompanyservices.co.uk

There are three main ways you can form your limited company. You can form your company directly with Companies House, use an accountant or lawyer or use a company formation agent.

Companies House

Incorporating a company directly with Companies House can initially appear to be the cheapest method. However you need to complete all the forms yourself and provide your own memorandum and articles of association to Companies House, this can be time consuming and expensive to produce, especially if you are not aware of the clauses that must be included or need a solicitor to supply this. Filing forms directly with Companies House can also take longer than other methods as you will need to post the forms to them.

Using an accountant or lawyer can be a good method of forming your company as you will get the advice and expertise of the professionals forming the company for you. However this is most definitely the more expensive method of the three and can cost up to £500 to incorporate your company.

Company Formation Agents such as Wimpole House Company Services can form your company for as little as £120 through their direct online system with Companies House. Wimpole House Company Services provide a standard memorandum and articles for you so that you save time and money and this also reduces the risk of error when producing it yourself – the memorandum and articles of association create a binding agreement the directors of the company must abide by. Wimpole House Company Services now have a faster online system with a direct link with Companies House, whereby they can set up a company for you normally within a few hours and provide you with all the necessary documentation you need. Company formation agents can also provide extra products and services such as hard copies of the memorandum and articles of association, company register, company seal or accountancy and tax advisory services. Wimpole House Company Services can incorporate your company whilst providing you with the expertise of professionals for £120

Be Free, Be Yourself, Be successful! Form a limited company!

Are you jaded by your monotonous job, has your career not taken on off as you once hoped? Or have you been made unemployed?

If you answered yes to any of these questions then now could be the perfect time to start a business. With the gloom and doom of the recession beginning to fade away, investor confidence and consumer spending are both rising once again. Whilst forming a company (and being successful) may not be a walk in the park, it could be the most fulfilling and profitable endeavour you ever undertake.

Profit as a person, and in the pocket

This could be your chance to do what you really want to do in life. After all you will be your own boss, you call the shots; you make the big decisions in your life. No more having to prove yourself to anyone but yourself. Work when you want to work and increase your income to an almost limitless potential.

If you take that brave step and form a company of your own then you will have a great chance to improve yourself by tackling new challenges everyday which will bolster both your skills and knowledge in the process.

The Basics of Business

The following is a list of essential services you should look take advantage of when starting a business:

• Get a Company Formation Agent to register your company. The complex legalities of incorporating a business with Companies House (the United Kingdom’s Registrar of Companies) make process a long and tedious affair. Company Formation Agents can save you all effort and have you operating as a limited company in 24 hours and they’re actually quite cheap. They can also help you get accepted and fast-tracked for a ...
• Business Bank Account. This really is essential. If you incorporate a company then you cannot cash cheques or accept credit card payments into your own personal bank account, obviously this is a massive hindrance.
• Hire an Accountant. Not only do you require a real skill with numbers you also need to know the various requirements and regulations demanded by Her Majesty’s Revenue and Customs (HMRC) and Companies House. Likely things you will have to regularly file for your new company include: VAT, Payroll Taxes, Annual Returns and Annual Company Accounts. Every company will hire an accountant eventually, save yourself time and hire one when you first start up. You’ll free yourself up to focus on the things make your business money.

Wimpole House Company Services offers all of these services for start-ups and many more. Check them out to see how they could help make your dream career move come true.

Limited companies (Ltd) allow you to operate a business whilst keeping it independent of your own private finances. Different to working as a sole trader, the corporation has its own legal entity and can trade and take on credit in its own name. Essentially, the liabilities of a company are limited to the company and so it’s shareholders are not accountable for paying off its debts. Unlike a sole trader which has unlimited liability, where the owner is liable for any the company’s debts outstanding.

Whilst opting for a limited company provides substantial advantages in terms of limited liability, there are also increased legal and financial obligations as well as the extra administrative duties that come with meeting the reporting requirements with Companies House; Annual Returns, Annual Accounts, Corporation and Pay-roll taxes to name a few. For many entrepreneurs acquiring the assistance of a dedicated Company Secretarial Services firm can save both time and money.

A limited company is owned by its shareholders, of which there must be at least two, that's why it’s called a ‘company’. These shares cannot be public traded on an exchange, to do so a company must be a Public Limited Company (PLC)

Different to sole traders, who are taxed under the self-assessment system, limited companies are subject to Corporation Tax, which is payable on all profits.

In the United Kingdom a company must be registered with Companies House. This is the only way to become a Limited Company.

Benefits Of A Limited Company

As well as minimising risks, people often prefer to use a limited company structure as it looks more professional and can assist in being able to raise finance and gain investments in order to expand the organisation.

In some sectors, it is essential to trade as a ‘limited company’ and it may be difficult to secure business deals if you operate in any other function. An additional reason to become incorporated could be if your type of business means that you take on sizeable risks that could have highly damaging consequences for you as an individual if you didn’t have the safeguard of limited liability.