You have decided to run your business as a private limited company. But you don’t know how to set one up.
A limited company is a legally separate entity from the people who run it. Therefore, its finances and taxes are separate from your personal ones.
To set up or ‘incorporate’ a limited company with Companies House you will need to consider the following:
- A suitable name
- An address
- Appoint at least one director
- Appoint a person with significant control
- Details of the company’s shares and shareholders
- Find a suitable SIC code
- Agree the written rules for the Company known as a ‘memorandum and articles of association’
Once the company is incorporated you will need to register for taxes with HMRC. The most common taxes to register for are below
- Corporation Tax – all businesses will be required to register for Corporation Tax and receive a UTR.
- VAT – in most cases if your turnover is over £85,000 you will need to register for VAT
- PAYE – if you will be employing people you will need to administer their payroll
As the company is a separate entity it will also require its own bank account. The process is similar but not the same as opening a bank account for an individual.
The appointed directors will also be required to register with HMRC for self-assessment tax returns.
Remember, even if you have been operating as a sole trader for some time you can always switch to a limited company when the time is right for you.
We can take you through the process of incorporating your private limited company and have your business incorporated within 48 hours.
Get in touch today to begin your journey. Alternatively, you can fill in the company formation form on the left and we will contact you.