When it comes to setting up a limited company, the government makes the steps very clear:
- Select your directors and secretary
- Register shareholders and/or guarantors
- Prepare all necessary company documents
- Identify your record-keeping practices
- Register a company name
There is a lot of information available on the very basic process of starting up your business, but what do you need to be thinking about beyond these steps? Mint Formations looks past the fundamentals of how to set up a limited company and explains some of the finer details:
What Do I Need to Set up a Limited Company?
Critical to setting up a limited company is a company name. Many people spend a lot of time thinking about branding and for good reason; branding can be a vital tool for growth and customer acquisition. However, choosing the wrong name now isn’t the end of the world. You can change your business name later if necessary. The most important thing to note is that your name must be unique. Companies House has a name checker that allows you to make sure your business name is available.
You’ll also need to register this name to a business address. This can be your own home if you don’t have a business property, although virtual office addresses are available if that doesn’t sound like an option you want to consider.
Further to this, you’ll also need a series of official business documentation. These include:
- PSC Register — A PSC Register is a record that details all “People of Significant Control” within your company. It ensures Companies House is aware of who has the right to make decisions about the business.
- Articles of Association — Articles of Association are essentially your business rulebook and policy. They govern how your business will be administered and outline the rights and powers of individuals within the company. They are not to be confused with workplace policy, which would dictate elements like behaviour and workwear. Articles of Association are business governance documents. You can use standard template documents if you don’t have specific business actions to cover, so don’t worry about this being a complex process.
- Memorandum of Association — A Memorandum of Association is a signed declaration by anyone involved in the initial formation of the business that they consent to become a member of the company and agree to the responsibilities entailed.
Can I Set up a Limited Company with One Person?
When you register a limited company, you must establish who the directors of the business are and who the shareholders are. There must be at least one shareholder and director. However, these can be the same person. There are no restrictions on how many people can work for a limited company. You can have one or one million. This means that if you want to establish a business where you are the sole individual working within the company, you are more than able to do so.