Limited Company Formations UK

Looking to kickstart your business journey? It’s time to take the leap and form your limited company. With the help of a limited company formation accountant, you can easily set up your new company, making sure you tick all the boxes of the process along the way.

Get in touch with us today for advice on setting up a company.

What is a Limited Company?

A limited company is a type of business structure where the liability of shareholders or members is limited to the amount they’ve invested or guaranteed to the company. This creates a legal separation between the business and its owners.

As a limited company forms a separate legal entity from its owners, this means:

The company can own assets, enter contracts and incur debts in its own name

Shareholders have limited liability for company debts

The business continues to exist regardless of changes in ownership

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What You Need to Become a Limited Company

Before you can jump into the process of forming a limited company, you must first ensure you meet all the criteria. Here are some things to consider before making an application:

Directors: You need to have at least one director who is at least 16 years old, has not been disqualified from being a director and is not an undischarged bankrupt.

Registered Office: You must have a registered office address in the UK. This can be different from where your business is conducted but it must be a physical address where legal documents can be delivered.

Shareholders: You need at least one shareholder (who can be the same as the director). Private companies limited by shares must issue at least one share.

People with Significant Control (PSC): You must identify and register anyone with significant control. This includes those who own more than 25% of shares/voting rights or have significant influence.

SIC Code: You need to provide at least one Standard Industrial Classification (SIC) code that describes your business activity.

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The Process of Forming a Limited Company

Now that you have all your information in order, it is time to start the application process. With our limited company accounts, we will guide you through every step of the process to ensure you can make informed decisions and understand the implications of forming a limited company.

1. Choose a Company Name: Your company name must be unique and not be the same as an existing company. It cannot be offensive or contain sensitive words or expressions. Remember, your company name must end with “Limited” or “Ltd” (or “PLC” for public companies).

2. Appoint Directors and Company Officers: You need at least one director to form a limited company. A company secretary is optional for private limited companies.

3. Identify Shareholders and Decide on Shares: You need at least one shareholder (who can be the same person as the director). Once this has been decided, you must determine the share structure, types and nominal value as well as define shareholders’ rights and the amount of issued shares.

4. Prepare Documents: There are several documents you must complete when creating a limited company. The “Memorandum of Association” states shareholders’ intention to form the company. The “Articles of Association” are the rules for running the company. Model articles can be used for this.

5: Register with Companies House You must complete form IN01 with company details, director information and shareholder details (see below). This should be submitted alongside your memorandum and articles of association.

6. Pay the Registration Fee: A registration fee must be paid for your application to go through. This may differ for online applications and postal applications.

7. Set Up Company Records: You must now register the members of your company. This includes the directors to secretaries, shareholders and people with significant control.

8. After Registration Once you have registered your members, you will receive a Certificate of Incorporation and a Unique Taxpayer Reference. Once you have this information, you should register for Corporation Tax within three months, register for PAYE if you have employees and register for VAT if your turnover exceeds the threshold. This is currently £90,000.

9. Open a Business Bank Account With your limited company now formed, you should now open a business bank account. Once this is complete, you will have a fully functioning limited company!

Fill Out Our Limited Company Form

    Company Details

    Desired Company Name*

    Registered Office address*

    Registered Post code*

    Expected annual Turnover*

    Trading Activity*

    Director 1 - Details

    Title*

    Directors Name*

    Phone number*

    Email*

    Address

    Post code*

    Date of Birth*

    NI Number*

    Nationality*

    Eye Colour*

    Town of Birth*

    Fathers First Name*

    Share Percentage %

    Additional Director/ Shareholder

    Title*

    Name*

    Phone number*

    Email*

    Address

    Date of Birth*

    NI Number*

    Nationality*

    Eye Colour*

    Town of Birth*

    Fathers First Name*

    Declaration*

    *I declare that the information I have provided in this form is correct to the best of my knowledge.

    Benefits of Creating a Limited Company

    Limited Liability

    Your personal assets remain separate from company debts, protecting your home and savings if the business faces financial difficulties.

    Tax Efficiency

    Corporation tax (currently 25% for profits over £250,000 and 19% for profits under £50,000) is often lower than income tax. This structure allows business owners to potentially take home more of their earnings compared to operating as a sole trader.

    Professional Image

    Having “Limited” or “Ltd” after your business name projects a more established and trustworthy image to customers, suppliers and partners. This enhanced perception can help you win contracts with larger organisations that prefer working with limited companies.

    Tax-Efficient Salary and Dividends Structure

    Directors can take a strategic combination of salary and dividends to minimise tax liability and National Insurance contributions. A limited company formation accountant (like ourselves) can provide support and advice on this.

    Pension Contributions

    Company pension contributions count as a business expense, reducing corporation tax while building retirement funds in a tax-efficient manner. These employer contributions are not subject to National Insurance charges, creating significant long-term savings.

    Easier Access to Financing and Investment

    Limited companies can sell shares to raise capital and often have better access to loans and credit facilities than sole traders. Banks and investors typically view limited companies as more stable entities for investment, opening up additional growth opportunities
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    Establish Your Limited Company with Nexus Accounting Today

    Understanding the ins and outs of forming a limited company can make all the difference when it comes to your application. With the help of our limited company accountants, you can effortlessly form your new company and have the support of our accountants on hand to answer any questions you may have along the way. Get in touch with us today for an expert accountant to help you set up your limited company.

    Got all your documents ready to go? Simply, fill out the form below and our team will be in touch with next steps.

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    FAQs

    1How much does it cost to start a Ltd company?
    The basic limited company formation process is quite affordable. If you are looking for a comprehensive service that includes personalised professional advice and other accounting services with setting up a limited company, our Limited Company package is the one for you! Take a look at our package in more detail or get in touch for more information today.
    2Can I set up a Ltd company myself?
    Yes, you can set up a limited company yourself by registering directly through the Companies House website without using a formation agent or solicitor. However, we recommend you have a professional on hand to help you with the limited company formation process.
    3Do I need an accountant to set up a Ltd company?
    An accountant is not legally required for the actual formation process of a limited company, as you can complete the registration yourself. But, it takes time to learn about limited company formations in the UK. This is why many business owners choose to use an accountant early on for valuable guidance on optimal share structures, tax planning and to help establish proper financial systems that will satisfy the more complex reporting requirements of limited companies.