Setting up a private limited company in the UK is not as complicated as you might think. Here are four simple steps that will help you demystify the entire process a limited company formation process.

Step #1 Choose your Company Name and Check Availability:

Start with checking the availability of your company name. Most Company Formation sites will have a “Company Name Search” function, enter your preferred company name and check for availability. The following are terms from Companies House for choosing your Company Name.

  • Original. Companies House will not allow you to pick a name or a name that resembles one that has already been registered. In other words, to set up your limited company, the name you choose for your business must be unique and at the same time, confiding the norms.
  • Unobtrusive. The name you choose must not offend any party of the society. Anything that is offensive is outright barred. You can get the list of ‘sensitive words and phrases’ compiled by the Companies House and by all means make sure that you stay away from those.
  • Availability. Verify if the name that you’ve chosen is already registered with the Companies House, you can use one of the free ‘availability checkers’ that are available online, like the one at https://mintformations.co.uk. If the name is taken, you don’t have a choice but to pick a different name.

Step #2 Choose the best Company Formation Agents:

With the name finalized, you will have to pick an agent to help you setup your limited company and here’s what you’ll have to consider

  • Trustworthiness. Though you can send in your application to the Companies House directly, it is a lot simpler to approach an authorised agent. You can find hundreds, if not thousands of agents that help you setup your limited company and it’s absolutely essential that the agent you pick is authorised by the Companies House.
  • Benefits. While selecting an agent to form your limited Company in UK, look for the additional features that are offered. These can range anything from round the clock support to logo and stationery design. A bit of planning and foresight will help you and your business in the long run.
  • Track Record. Pay attention to the kind and the quality of support that an agent offers. When things go haywire, you cannot afford to wait forever. In short, you will have to balance the cost and the quality of service that is being offered.

Step #3 Provide the Documents Required:

Another crucial step is the compilation of documents that you will have to put together in order to form your limited company in the UK.

  • Form 10 This is a list that contains details about your company’s director credentials, addresses and the company’s registered office address.
  • Form 12 This lists the terms of agreement and conditions of your business, as laid by the Companies Act.
  • Memorandum of Association This is a comprehensive document that carries information regarding your company, your directors, your mode of business operation and the likes.
  • Article of Association This is essentially a document that is compiled with the intention of educating outsiders about your business. It generally contains information regarding the rules & regulations of your company, the rights of your stakeholder and power entrusted with your directors.

Step #4 Fill the Company Details:

The final step in the process is for you to collect detailed information that you will need while applying with the Companies House. These include:

  • Director’s address. As defined by the Companies Act of 2006, you are allowed to form a limited company with just one director. But you will have to appoint a company secretary. You will have to provide the Companies House with the residential address of the director. This information will go public, and if you have concerns disclosing your residential address, you can also consider an agent that offers service addresses.
  • Registered Office. The other detail that you need to provide is the company’s registered office address. Again, if you don’t have an office in the UK and still want to register a business, you can consider using the registered office address services in UK.
  • Statement of Capital. If the company that you’re about to register is limited by shares, you will have to provide the ‘Statement of Capital’.

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