For the self-employed, there are lots of benefits to setting up a limited company – from having control over your projects and brand, to being personally protected by its legal identity, to finding the most tax-efficient ways to run your business.
Setting up a limited company is a relatively simple process. You need to make some decisions about your company (including choosing a company name and how many directors you’d like), then become incorporated with Companies House and complete all the legal and bookkeeping paperwork.
Making some decisions about your limited company
Many freelancers, contractors, startups and small businesses will choose to form a private limited company. You’ll need decide on your business name, the address of the location where the company is based, and who your company director will be. You’ll also need to organise details of your company shares.
Forming a public limited company is a bit more complex and requires a lot more – including a qualified company secretary and at least two shareholders – which is why many small businesses opt for private limited companies.
Setting up a limited company
Setting up your limited company isn’t nearly as tricky or bureaucratic as you might think. It’s especially simple when Crunch do this for you with Go Limited, who will set up your incorporation with Companies House and provide you with all the necessary paperwork such as your certificate of incorporation and Articles of Association.
This is the part of the process which many people consider to be tricky or bureaucratic – but it’s actually really simple. You can go online and set up your limited company yourself in about ten minutes, for the cost of a takeaway pizza.
You just have to supply certain personal details to help Companies House identify you as a company director, and you’re good to go. Companies House will often have your limited company formed in a few hours.
Complete the incorporation process
Companies House is responsible for all limited company registration in Britain. Their website provides detailed information.
The following documents must be completed and returned to Companies House in order to complete the incorporation process.
- Memorandum of Association – limited company name, location, business type
- Form 10 – director’s names, addresses and registered limited company address
- Form 12 – states that the limited company complies with terms and conditions of Companies Act
- Articles of Association – outlines director’s powers, shareholder rights etc. (this is normally provided by the Company Act that sets up the Limited Company)
Often your company formation agent or accountant will complete these on your behalf.
Take care of the legal requirements
As a limited company director you have certain legal responsibilities. These include:
- Your newly set up Limited Company must be registered at Companies House.
- Annual accounts and Confirmation Statement must be completed and filed with Companies House every year.
- An annual HMRC Corporation Tax return must be completed and paid within nine months and one day of the limited company year end, every year.
We make accounting simple
We take the stress out of accounting and bookkeeping for small businesses. Our simple service is built around you, making it quick and easy for you to log in, sort out your accounts, and get back to doing what you enjoy.
When you sign up you’ll get unlimited support from our specialist accountants and Client Managers, who will make staying on top of your accounting and bookkeeping responsibilities a piece of cake. You can contact our team over the phone at any time during business hours – no need to book appointments.