At Prescient Accounting, we know that setting up a business isn't always as straightforward as it should be. You've come up with a brilliant idea, you've done your homework, and you're ready to get started, but then you hit a snag. Maybe you missed out a vital step or overlooked an issue that you perhaps weren't aware of. Either way, if there's one weak link in the process, it can impact your business severely, resulting in a poor start and disappointing results.
We believe that everyone deserves the very best chance to succeed, so we trained our staff in all aspects of the limited company formation process.
If you are in the early stages of setting up a limited company, Prescient Accounting will ensure that every step of your journey is as smooth as possible and that you build a firm foundation for future business success.
Let us know what you need from your accountants, we’re happy to help.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
Our specialist staff will guide you through each stage with patience and precision to ensure a perfect start for your limited company.
Forming a limited company in the UK requires several specific tasks, including the following:
Choosing a unique and compliant name can be a challenge! Here’s how we help you with this:
Our team will search the Companies House register to ensure your desired company name is not already registered by another company. This includes checking for names that are too similar to existing ones, which could confuse customers and potentially lead to legal challenges.
We'll advise you on the appropriate suffix to use depending on your preference. By default, limited companies in the UK must include "Limited" or "Ltd" at the end of their name.
Certain names require approval from specific government bodies. We'll check if your chosen name falls into this category and advise you on the necessary steps to obtain permission if needed.
If your preferred company name is unavailable, we can help you brainstorm alternative names that are unique, memorable, and reflect your brand identity.
The Articles of Association establish your company's internal rules and regulations, outlining how the company will be run, how meetings are conducted, and how decisions are made.
The Memorandum of Association, on the other hand, specifies the company's core purpose, the types of business activities it can undertake, and the amount of share capital it has.
Effectively, this is your brand’s DNA, so it must be spot-on! This is how we help you:
We'll provide clear explanations of each clause in these documents and ensure they comply with the latest Companies Act regulations. We'll tailor them to your specific business needs and ownership structure.
We'll draft the Articles of Association with future growth in mind, allowing for necessary changes to the company structure as your business evolves.
Even after formation, we can advise you on any amendments you might need to make to these documents in the future.
You also need a Certificate of Incorporation. This official document issued by Companies House confirms your company's legal existence. It includes details like the company name, registration number, and incorporation date.
You will receive the company incorporation certificate by email, along with the Articles of Association and Memorandum of Association. This will also include your unique company number and share certificates.
Every limited company in the UK must have a registered office address, which can be different to your company’s permanent business location. This is the official address where Companies House and other government bodies will send legal documents and correspondence, usually addressed to the company directors.
Our limited company formation process includes comprehensive address services for your convenience:
We can also assist you in setting up a service address or business mail forwarding address if required.
We'll guide you through the process of selecting individuals to serve as directors and shareholders – the cornerstones of your company. A company director is responsible for managing the company, making strategic decisions, and ensuring it complies with legal requirements. Shareholders, on the other hand, own shares in the company and have certain rights, such as voting on resolutions and receiving dividends.
We'll provide a clear explanation of the duties and obligations associated with each role. This includes understanding the legal responsibilities of those with significant control, such as directors, alongside potential conflicts of interest, and the rights and limitations of shareholders.
Whether you're a sole director-shareholder or have a more complex ownership structure, we'll offer guidance that aligns with your specific circumstances.
Share capital refers to the total amount of money raised by the company through the issuance of shares.
During your consultation, we'll explain the different types of shares available and how they influence ownership rights and voting power.
In addition, we'll offer advice on the following:
We'll guide you through the process of allocating shares among the company's founders or shareholders. This includes determining the number of shares each individual will receive and the nominal value (face value) of each share.
We'll help you structure the share allocation in a way that aligns with your ownership goals and reflects the contributions of each shareholder.
As your company grows, you might need to issue additional shares. We can advise you on the process and ensure it complies with legal requirements.
It's relatively easy to register your company in the UK, if you are comfortable with general administration and familiar with some of the legal jargon involved.
However, it also comes down to the complexity of your business (for example, if you have multiple shareholders or unique features that require a more involved approach) and how much time you can devote to the task.
While most of the process is straightforward, there are potential challenges, such as:
If you want to be certain that every detail is in order, then Prescient Accounting will check everything to give you peace of mind.
Prescient Accounting understands that starting a limited company involves a multitude of decisions, and choosing the right business bank account is crucial. With a plethora of options available, navigating the features and fees can be overwhelming.
That's where we come in. Our team of financial experts can guide you through the selection process and ensure you choose a bank account that perfectly aligns with your company's specific needs.
One fact that can't be stressed enough is that it's wise to keep your personal and business finances separate, otherwise, things can become 'interesting' when it comes to dealing with your tax and accounting!
Don't settle for a generic business bank account! Prescient Accounting will be your business banking partners, helping you find a business account that's the perfect fit for your limited company.
It's safe to say that setting up a UK limited company is pretty reasonable. Depending on your needs and requirements, it will cost somewhere between £12 and £200, on average.
The £12 is the standard Companies House filing fee (for a basic limited company), and the rest is related to further services that can be added as required. Remember - this is for the company formation process only. Other costs will be involved to set up your company, such as any overheads, rent, legal issues, insurance, and so on.
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The internet is flooded with websites offering different company formation packages. These are quick and easy to use, promising to have your company up and running within 24 hours*. All you have to do is enter your company details, and they do the rest.
*depending largely on the Companies House workload on the day
So, why should you choose Prescient Accounting over a generic company formation agent?
It all comes down to the level of service you desire and expect! We believe in personal service, rather than leaving you to complete an online form. Our service goes well beyond this, offering you all the professional advice and guidance you need to get your new company off the ground.
Also, there are no hidden costs, as you may find with other companies.
Once Companies House has approved your registration, you can start trading immediately!
However, you must be certain that everything is in order before diving into the world of business and commerce.
This is perhaps where some company formation packages offered by other providers fall down, as their service begins and ends once your company is registered and the fee is paid.
At Prescient Accounting, we won't abandon you! We don't just help you form a company, we stand by you to ensure that you get the best possible start.
In the UK, a private Ltd company and a limited company are essentially the same legal structure. There's no difference in the formation process or ongoing regulations. In both cases, it means a private company limited by shares in that the liability of shareholders is limited to the capital of the original investment.
The term "private" simply clarifies that the company's shares are not offered for public sale on a stock exchange. These companies are designed for a closed group of shareholders, typically the founders or investors.
Here's a quick explanation:
This is the most common legal structure for businesses in the UK. It offers limited liability protection to its owners (shareholders), meaning their personal assets are shielded from business debts.
This is a subtype of a limited company. It has all the same benefits and obligations as a standard limited company but restricts the sale of shares to the general public.
So, if you register a limited company, it's automatically considered a private limited company unless you specifically choose to go public in the future.
Prescient Accounting can help with either one!
While it's pretty simple to register a company in the UK, the actual formation process can be tricky.
At Prescient Accounting, we don't simply help you form a limited company and then leave you to get on with it. We like to prepare you for the future, offering advice on matters such as your Company Tax return, Corporation Tax and your first Confirmation Statement (previously called the Annual Report).
These are essential responsibilities that all limited companies must undertake to ensure full compliance with HMRC and Companies House regulations.
To give an example of how important they are, failing to submit a Confirmation Statement once a year is a criminal offence with the following potential penalties:
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This is an excellent example highlighting the challenges facing company directors and other 'persons of significant control' in UK Ltd companies.
Our company formation specialists will ensure that you are fully up to speed with all the necessary facts to keep you on the right side of the authorities and reduce the risk of penalties.
Launching your limited company is an exciting step, but steering your way successfully through the legalities and complexities can feel overwhelming. Prescient Accounting can streamline the process, ensuring your company is set up correctly from the outset. Our experts will guide you through every step, from registration to finding the perfect business bank account.
But we go further, helping you to build a firm foundation from which to build a successful, thriving business.
Prescient Accounting is your constant companion on the path to entrepreneurial success. Contact us today for a free consultation and get ready to turn your business vision into reality
A limited company in the UK is a business structure where the company's finances are separate from the personal finances of its owners. Shareholders' liability for debts is limited to their investment.
Forming a limited company in the UK involves choosing a unique company name, preparing documents such as the Memorandum and Articles of Association, and registering with Companies House.
The benefits of forming a limited company include personal liability protection, tax efficiency, enhanced professional status, and the ability to raise capital by selling shares.
The cost to form a limited company varies depending on the method of registration but typically starts from around £12 for online registration via Companies House.
The process to form a limited company can be completed within 24 hours when registering online, although it may take longer if registering by post or through certain service providers.
To form a limited company, you'll need to provide identification documents, a registered office address, and complete the application with Companies House, including the Memorandum and Articles of Association.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
We are chartered accountants and tax advisers, working with individuals and small and medium-sized businesses. We're a full-service firm, helping people and businesses with all of their tax and accounting needs. About us
