{"id":1640,"date":"2020-01-08T09:00:37","date_gmt":"2020-01-08T09:00:37","guid":{"rendered":"https:\/\/www.mintformations.co.uk\/blog\/?p=1640"},"modified":"2025-07-30T16:13:38","modified_gmt":"2025-07-30T16:13:38","slug":"how-to-open-ltd-company-5-steps-to-success","status":"publish","type":"post","link":"https:\/\/www.mintformations.co.uk\/blog\/how-to-open-ltd-company-5-steps-to-success\/","title":{"rendered":"How to open an LTD company: 5 steps to success"},"content":{"rendered":"

Reports from Companies House reveal that over 660,000 businesses<\/a> are started in the UK every single year. These businesses may all differ in what they offer, and to who, but they also have something in common. From large corporations to the smallest of operations, every business has to go through the same process of getting set up and registered. If you\u2019d like to know how to open an LTD company, then all you have to do is follow this basic step-by-step system that thousands use every day.<\/p>\n

How to open an LTD company step one: Select your business owners and shareholders<\/h3>\n

Before you do anything, you\u2019ll want to know who is going to be a part of your company. An LTD business needs to register all current business directors and any stakeholders involved from the start.<\/p>\n

You can adjust these individuals at a later date \u2014 both adding and removing personnel. But at the time of opening your LTD company, you must be aware of everyone who is part of the business from day one.<\/p>\n

To open an LTD company, you only need to have one director \u2014 but there is no limit on how many other people can be involved.<\/p>\n

How to open an LTD company step two: Pick your business name<\/h3>\n

If you want to start a business, you need a business name. Unlike starting up as a self-employed worker, where you as an individual are the business, an LTD company is a separate entity, which means it needs a business identity.<\/p>\n

This identity comes in the form of a brand name.<\/p>\n

You can change your business name<\/a> later if you want to, but that comes with associated rebranding and the potential for customer confusion. What this means is you don\u2019t just want to pick any old name so you can move forward with getting the company running. The name you register is important.<\/p>\n

At Mint Formations<\/a>, we suggest you take the time to carefully consider how your name relates to your industry and branding. Once you have a business name, you can move on to the next steps.<\/p>\n

To see if your business name is available, use our handy business name checker<\/a>!<\/p>\n

How to open an LTD company step three: Decide if you are going private or public<\/h3>\n

PLCs (Public Limited Companies) and LTDs (Private Limited Companies) are very similar. Each is an individual legal entity and afforded almost exactly the same rights and responsibilities. Where they differ is that PLCs allow members of the public to invest in the business through the acquisition of shares on the stock market. Anyone can do this depending on the number of shares the PLC offers for sale. For people to access the shares of an LTD, they must be offered privately by the current owners and registered stakeholders.<\/p>\n

LTD companies offer a lot more control of who is involved in your business, but PLCs provide access to exclusive methods of funding. It\u2019s important to decide which type of business you want to be before you register your company name<\/a>.<\/p>\n

It\u2019s much harder to turn your business from a PLC to an LTD, as you need agreements from the public shareholders. If you decide to later turn from an LTD to a PLC, it\u2019s often easier because those involved are business partners and investors you\u2019ve already built relationships with.<\/p>\n

However, you can also face challenges from those inside your business when adapting a company. That is why you must decide on what kind of business you want to operate before you start \u2014 while there are options available to change if necessary, it\u2019s always better to start as you mean to go on if you can.<\/p>\n

How to open an LTD company step four: Get together the required documents<\/h3>\n

To open an LTD business, you\u2019ll need to supply Companies House with a selection of formal documents that essentially act as the groundwork from which you operate. These are known as:<\/p>\n