When setting up a business in the United Kingdom, there are several models on which to base it. Most common is the structure of the sole trader. In this model, the finances of the company are not tied to personal finances. This is why another desirable business structure is a limited liability company. It is referred to as limited because personal finances are unrelated to business finance. That, and shareholders assume no responsibility for debts that the business takes on. There are some things to know about setting up a limited company.
After you have decided what industry your business will operate in, you must register with the Registrar of Companies at Companies House before you may start your operation. Proper documentation must be submitted by you or by an officer who works for you. The procedure may also be completed online. The necessary documents include the Memorandum of Association, Articles of Association, and Form IN01. Detailed on these forms is the name of the company and the type of business that it is, the power of the directors and rights of the shareholders, and details concerning directors, secretaries, and shareholders respectively. If you include particular wording when filling out the forms, then additional information might be requested.
Yearly accounts concerning your business must be submitted to Companies House also. An Annual Return form, also known as AR01, must be submitted as well as your yearly account report. The AR01 provides Companies House with the up-to-date information about your company and often involves a processing fee. That is not all, as tax information in relation to profits and taxable income that your company annually produces must be brought to the attention of HMRC. To top it off, a corporation tax return must be filed, and you will have nine months to pay on the liabilities.
You must also make a decision as to what type of limited company you will set up. The most common include private companies that are limited by shares or guarantees, and public. Those limited by guarantees do not involve shareholders, and it must be public to trade stocks on the stock market.
Limited companies are not all that difficult to set up. Yes, the crowd of forms and details you must fill out can be wearying, but that has more to do with just being registered and legal. The hardest work is the planning, such as what products or services you will provide, what type of limited company you want to follow the model of, and the director situation you wish to implement. Once the papers are filed, it is time to get some business done.
After you have decided what industry your business will operate in, you must register with the Registrar of Companies at Companies House before you may start your operation. Proper documentation must be submitted by you or by an officer who works for you. The procedure may also be completed online. The necessary documents include the Memorandum of Association, Articles of Association, and Form IN01. Detailed on these forms is the name of the company and the type of business that it is, the power of the directors and rights of the shareholders, and details concerning directors, secretaries, and shareholders respectively. If you include particular wording when filling out the forms, then additional information might be requested.
Yearly accounts concerning your business must be submitted to Companies House also. An Annual Return form, also known as AR01, must be submitted as well as your yearly account report. The AR01 provides Companies House with the up-to-date information about your company and often involves a processing fee. That is not all, as tax information in relation to profits and taxable income that your company annually produces must be brought to the attention of HMRC. To top it off, a corporation tax return must be filed, and you will have nine months to pay on the liabilities.
You must also make a decision as to what type of limited company you will set up. The most common include private companies that are limited by shares or guarantees, and public. Those limited by guarantees do not involve shareholders, and it must be public to trade stocks on the stock market.
Limited companies are not all that difficult to set up. Yes, the crowd of forms and details you must fill out can be wearying, but that has more to do with just being registered and legal. The hardest work is the planning, such as what products or services you will provide, what type of limited company you want to follow the model of, and the director situation you wish to implement. Once the papers are filed, it is time to get some business done.
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