A Ltd company, commonly referred to as an Ltd, is a type of business structure that is widely used in the United Kingdom and other countries.
It is a separate legal entity from its owners, which means that the company can enter into contracts, sue or be sued in its own name, and own assets in its own name. The owners of an Ltd are referred to as shareholders, and their liability is limited to the amount of capital they have invested in the company.
To set up an Ltd company, there are certain requirements that must be met. In this blog, we will discuss these requirements in detail, including the following:
- Choosing an Ltd Company Name
- Appointing Directors and Shareholders
- Registering the Company
- Drafting the Memorandum and Articles of Association
- Applying for a Unique Taxpayer Reference (UTR) Number
- Registering for Corporation Tax
- Setting up a Company Registered Office
- Keeping Company Records
Choosing a Company Name
The first step in setting up an Ltd company is to choose a name for the company. The company name must be unique and must not be similar or identical to an existing company name. It is recommended to carry out a name search before registering the company to ensure that the name is available.
There are certain restrictions on the type of name that can be used for an Ltd company. The name must not contain any offensive language, must not be misleading, and must not contain certain words that are restricted by law. For example, the name must not contain the words “Royal,” “National,” or “International” unless permission has been obtained from the relevant authorities.
Appointing Directors and Shareholders
An Ltd company must have at least one director, and there is no limit to the number of directors that a company can have. The directors are responsible for the management of the company and are accountable to the shareholders.
Shareholders are the owners of the company and have a financial interest in the company. They are entitled to receive dividends from the company’s profits and have the right to vote on important company matters.
It is important to note that directors and shareholders can be the same person, but this is not a requirement.
Registering the Company
Once the company name has been chosen and the directors and shareholders have been appointed, the next step is to register the company with Companies House. Companies House is the official register of companies in the United Kingdom, and it is responsible for registering and maintaining records of all Ltd companies.
To register the company, the following information must be provided to Companies House:
- The company name
- Details of the directors and shareholders
- The company’s registered office address
- A memorandum and articles of association (discussed in more detail below)
Once the registration process is complete, the company will be issued with a certificate of incorporation, which confirms that the company has been incorporated and is now a separate legal entity.
Drafting the Memorandum and Articles of Association
The memorandum and articles of association are the two key documents that govern the internal management and operations of an Ltd company. The memorandum sets out the company’s objectives and the terms and conditions under which the company will be run. The articles of association set out the rules for the company’s internal management, including how decisions will be made, how directors will be appointed, and how shareholder meetings will be conducted.
It is important to ensure that the memorandum and articles of association accurately reflect the intentions of the company and its shareholders. They can be drafted by a solicitor or legal advisor, or template versions can be purchased and customized to fit the specific needs of the company.
Applying for a Unique Taxpayer Reference (UTR) Number
Once the company has been registered with Companies House, the next step is to apply for a Unique Taxpayer Reference (UTR) number. A UTR number is a 10-digit number issued by HM Revenue and Customs (HMRC) and is used to identify the company for tax purposes.
The UTR number is required for the company to register for Corporation Tax, and it must be quoted on all tax returns and other communications with HMRC.
Registering for Corporation Tax
Once the company has been issued with a UTR number, it must register for Corporation Tax. Corporation Tax is a tax on the profits of the company, and it must be paid to HMRC on a regular basis.
The company must inform HMRC of its liability for Corporation Tax within three months of the end of the accounting period in which the company became liable for the tax. The accounting period is usually 12 months, but it can be different if the company has a different financial year end.
Setting up a Company Registered Office
Every Ltd company must have a registered office, which is the official address of the company and must be located in the United Kingdom. The registered office address is where all official communications from Companies House and HMRC will be sent.
The registered office address does not have to be the same as the company’s trading address, but it must be a physical address, not a PO box.
Keeping Company Records
Finally, it is important to keep accurate and up-to-date records of all transactions and other important information relating to the company. This includes financial records, such as invoices, receipts, and bank statements, as well as records of meetings and decisions made by the directors and shareholders.
These records must be kept for a minimum of six years and must be available for inspection by HMRC if requested.
Conclusion
In conclusion, setting up an Ltd company involves meeting a number of requirements, including choosing a company name, appointing directors and shareholders, registering the company with Companies House, applying for a UTR number, registering for Corporation Tax, setting up a registered office, and keeping accurate company records. By following these requirements, a new Ltd company can be successfully set up and operated.
How can Micahguru Formations help you?
Setting up a company in the United Kingdom as a non-resident can be a complicated and time-consuming process.
There are many legal and administrative tasks that must be completed correctly in order to ensure that your company is registered and compliant with all relevant regulations. Hiring a UK-based attorney to help with this process can be expensive, and many non-residents may not have the necessary resources or expertise to navigate the process on their own.
Micahguru Formations can help to simplify the process and reduce the costs associated with setting up a UK company as a non-resident. They have a team of experienced professionals who are well-versed in the legal requirements and procedures involved in company formation, and they can provide support and guidance every step of the way.
One of the key benefits of working with Micahguru Formations is their expertise in handling the paperwork and filing the necessary documents with Companies House. This includes submitting the articles of association, registering for taxes, and obtaining any necessary licenses or permits. They can also help with the process of opening a UK bank account, which can be a complicated and time-consuming task for non-residents.
In addition to handling the administrative tasks, Micahguru Formations can provide valuable advice and support to help you get the most out of your investment. They can help you understand the local business environment, identify opportunities for growth, and provide guidance on how to manage your finances and operations effectively.
Overall, Micahguru Formations can help you start your UK company as a non-resident quickly, efficiently, and cost-effectively, so that you can focus on growing your business and achieving your goals.
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