Set Up a Limited Company in the UK
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What is a Limited Company in the UK?
A limited company in the UK is a business structure where the company’s liabilities are separate from those of its owners. This means that the owners (or shareholders) are not personally responsible for the company’s debts beyond the amount they have invested in the business. A limited company can either be limited by shares or limited by guarantee, with most companies being limited by shares, meaning the company is owned by shareholders who each hold shares of the company.
When you set up a limited company in the UK, your business becomes a separate legal entity, meaning it can enter contracts, own property, and be held responsible for its own liabilities. This structure is often chosen by business owners who want to protect their personal assets and enjoy a variety of tax benefits.
Who is it for?
Setting up a limited company in the UK is suitable for a wide range of businesses, including:
Setting up a limited company is ideal if you want a clear and formal structure for your business, especially when you plan to hire employees, work with partners, or raise funds.
What is the Process Like?
The process of setting up a limited company in the UK is relatively simple, but it involves several key steps to ensure compliance with UK law. Here is a breakdown of the typical steps involved:
Choose a Company Name
Your company name must be unique and not similar to any existing company names registered with Companies House. You can check the availability of your company name using the UK company name search tool. Make sure your company name follows legal guidelines and doesn’t include prohibited words.Decide on Your Company Structure
Most businesses in the UK set up as private limited companies (Ltd). You need to decide if your company will be limited by shares or limited by guarantee, which determines how your company is owned and how it raises funds.Register with Companies House
To legally establish your business, you need to register your company with Companies House. This is the official government body that registers companies in the UK. You’ll need to submit the required details about your company, including its name, address, and directors.Choose Your Company Directors
You need at least one director for your limited company. The director(s) are legally responsible for the day-to-day management of the company and ensuring it complies with UK laws.Set Up a Business Bank Account
Opening a business bank account is essential for separating your personal finances from your business finances. You will need your company registration number from Companies House to open a business account.Register for Taxes
Once your company is set up, you need to register with HM Revenue & Customs (HMRC) to pay taxes and VAT if applicable. You will also need to consider your obligations regarding PAYE if you plan to hire employees.
Requirements for Setting Up a Limited Company
To legally set up and operate a limited company in the UK, you must meet the following requirements:
Benefits of Setting Up a Limited Company
Setting up a limited company offers several advantages:
Costs/Fees
The cost of registering a limited company typically includes:
Online Registration Fee: £50 for online registration with Companies House.
Formation Agent Fees: If you use a formation agent, the fees can range from £51 to £150, depending on the services provided.
Business Address: If you need a registered office address, there may be additional fees for this service.
Processing Times
Processing times for registering a limited company with Companies House can vary, but most online applications are processed within 1-2 working days. Additional services, such as business address or company formation agents, may take longer.
How Bekenbey Can Help
At Bekenbey, we specialize in helping businesses set up their limited companies in the UK. From registering your company with Companies House to ensuring compliance with tax regulations and business laws, our expert team provides comprehensive support for entrepreneurs looking to establish a legal presence in the UK.
Set Up Your Limited Company Today with Bekenbey
Ready to start your business in the UK? Contact Bekenbey today to begin the process of setting up your limited company. Our experienced team is here to guide you through every step of the company formation process. Book a consultation now and take the first step towards building your business in the UK!
Documents Needed
To set up a limited company, you will need to provide the following documents:
Your Immigration
Questions, Answered
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