If you\u2019re considering starting a business in the UK, you\u2019re not alone.<\/p>\n\n\n\n
The UK is in many ways a brilliant place to start a business and you\u2019ll be joining many other household name companies that decided to form a limited company in the UK.<\/p>\n\n\n\n
Companies House <\/a>is the UK\u2019s \u2018registrar of companies\u2019. You can\u2019t legally form a limited company in the UK without the involvement of Companies House, so you\u2019ll need to deal with them at some point. The below guide will help you learn how to form a limited company and the important considerations to take during the process.<\/p>\n\n\n\n Limited companies are in many ways different from the perhaps more familiar\u00a0sole trader\u00a0<\/a>setup. It might be more tax-efficient to form a limited company (though you should speak to a decent tax advisor to make sure of this) and you can also reduce your liability. There\u2019s also the credibility factor, with limited companies sometimes being seen as safer choices than sole traders. It\u2019s quite possible that you\u2019d earn contracts or work through being a limited company that you wouldn\u2019t be offered as a sole trader.<\/p>\n\n\n\n In this article, we\u2019ll look at the three main types of limited company recognised in the UK:<\/p>\n\n\n\n Private company limited by shares<\/p>\n\n\n\n Most UK limited companies are set up as private companies limited by shares.<\/p>\n\n\n\n As explained by the gov.uk website, \u201cmost limited companies are \u2018limited by shares\u2019. This means they\u2019re owned by shareholders, who have certain rights. For example, directors may need shareholders to vote and agree changes to the company.\u201d One limitation of a private company limited by shares is that the shares cannot be listed on a stock exchange. If you want your company listed on a stock exchange, you\u2019ll normally have to convert your private company limited by shares to a public limited company.<\/p>\n\n\n\n Public limited company<\/p>\n\n\n\n As hinted at above, one of the major differences between a private company limited by shares and a public limited company is the ability to list shares on a stock exchange. However, there are some requirements that you have to meet before you can convert your private company limited by shares into a public limited company. One of the key requirements of a public limited company, as explained by hjsolicitors.co.uk, is that \u201cIt must have issued share capital of at least \u00a350,000 (or the proscribed Euro equivalent). At least 25% of the nominal value of its shares and the whole of any share premium must be paid up on registration.\u201d<\/p>\n\n\n\n Private company limited by guarantee<\/p>\n\n\n\n As an alternative option, often used by charities and other not-for-profit organisations, is the private company limited by guarantee. Rather than shareholders, a private company limited by guarantee will have members who guarantee to pay the company\u2019s bills should the company be unable to do so (as laid out in the company\u2019s articles of association).<\/p>\n\n\n\n We\u2019ve listed a few of the key advantages to forming a limited company below:<\/p>\n\n\n\n It\u2019s also important to be aware of some of the potential disadvantages.<\/p>\n\n\n\n The steps of forming a limited company are similar for every business.<\/p>\n\n\n\n Companies House can and does reject company formation applications from time to time. To give yourself the best possible chance of success, you can use a company formation agent, such as Mint Formations <\/a>, who are very familiar with the application process and understand how it all works.<\/p>\n\n\n\n If all company formation requests need to go through Companies House why not go directly with them?<\/p>\n\n\n\n Good question.<\/p>\n\n\n\n Of course, many companies can and do liaise directly with Companies House. But some people find the process difficult, time-consuming and complex. If you\u2019d like to get your business started quickly and with minimal use of your own time, it can make sense to use a company formation agent such as Mint Formations. There\u2019s an additional fee, but this allows you to spend your valuable time on the things that are most important to your fledgeling business.<\/p>\n\n\n\n At Mint Formations, we help you form your limited company and take away all the stress that comes with starting your own business. We offer standard and bespoke packages <\/a>to meet your needs and can help through every step of the process to get your home business up and running.<\/p>\n\n\n\nWhy Form a Limited Company?<\/strong><\/h2>\n\n\n\n
What Are the Different Types of Limited Company?<\/strong><\/h2>\n\n\n\n
Advantages and Disadvantages of Forming a Limited Company<\/strong><\/h2>\n\n\n\n
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How to Form a Limited Company<\/strong><\/h2>\n\n\n\n
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To Form With Companies House or a Formation Agent?<\/strong><\/h2>\n\n\n\n
Ready to Form Your Limited Company?<\/strong><\/h2>\n\n\n\n