Steps In Setting Up A Limited Company

By Author: Barry Edwards.
Total Articles: 2
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One of the best things that you can do is setting up a limited company. This is a privately owned business that has limited liability to the directors, shareholders and members.

One of the best things that you can do is setting up a limited company. This is a privately owned business that has limited liability to the directors, shareholders and members. The beauty of this form of business structure is that the finances of the company and those of members are kept distinct. This means that you will never have to worry about losing your assets in case something goes wrong. Many people are into sole proprietorship and reluctant to set up a limited company. Looking at some of the benefits that a limited company offers could help do away with the misconceptions.

As aforementioned, a limited company separates the assets of the investors from those of the company. This is what will enable you to set up a company without the worry of going down with it. Second, the limited company tax is quite efficient as opposed to sole proprietorship. The dividends are not as heavily taxed as salaried income. Thirdly, the limited company ...
... will help you to succeed in certain industries. There are essentially three steps you have to take when you set up a company.

The first step is that of getting the basic information as stipulated by Form IN01. In this stage, you will have to come up with the name of your company and the physical address. It is also at this phase that you will be required to give details of your business objectives and the physical address of your office. When choosing the business name to go with, it is highly recommended that you use the Company House guidance GP1. There are rules governing the choice of a business name. Additionally, your business name has to be unique; it should not be in use elsewhere.

Secondly, once the first step is complete, the next thing that you have to do is submit your memorandum of association. This contains the names and addresses of the initial shareholders. It is this document that shows the intention of each party when you start a company. The third step is that of submitting the Articles of Association. This document describes how your limited company is going to operate. It is imperative that you give accurate details when it comes to this step. It is the details on the Article of Association that dictate if you get the rights to start your business. Today, there are mainly two options that you can use to start a company.

The online option is the most widely used options today. This is where you logon to the Companies House website and fill the relevant forms to set up a limited company. The fee for this option is usually 18 Euros. The best thing about the online option is that you can set up limited company tax from anywhere. If you are, however, uncertain of the right options to use, it is a brilliant idea to go with the second option. This is where you hire a professional to help set up your limited company. In this step, you can choose to hire a formations agent or an accountant.
Resource: www.companybug.co.uk