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Understanding Company Formation
At TR-W, we’ve been helping Lancaster and Morecambe entrepreneurs to start up and build businesses for decades. We know how often questions arise about the process for company formation.
With that in mind, we decided to put together an FAQ of the most commonly asked questions, to help everyone plan for their future.
What is a Company Formation Agent?
Company formation agents are specialists in helping with company formation on behalf of other businesses. They remain independent, but assist with the process of setting up different company structures, streamlining the process and making it easier to use. They are also sometimes called secretarial agents.
As Lancaster and Morecambe based company formation agents, TR-W have acted on behalf of many local companies.
Providing Independent Financial Advice In Lancashire
Can I Set Up a Limited Company Myself?
Absolutely. You just need to register with Companies House, which can be done online or by mail. The government has even made step-by-step guidelines available. However, you may find that some of the documentation you need is easier to assemble when supported by someone with experience.
Can I Set Up a Limited Company While Employed?
There are no restrictions to doing this in law, but there may be clauses in your employment contract which could affect this. We’d recommend you check that closely before doing this.
The process of setting up a limited company also requires certain records and documentation be created, and ensuring these documents are compliant can take time. For this reason we’d also recommend using an external service to do this, simply so you have the time both for your employment and for the actual work of your limited company.
What Documents Do I Need for a Limited Company?
Documents needed to form a limited company include the Memorandum and Articles of Association, which lay out your intent to form a business as well as the details of your business activity. You will also need an address to act as your registered office, and you will need the names and addresses of directors, shareholders, and other people important to the company.
Is There a Minimum Turnover for a Limited Company?
There’s no legal minimum turnover to form a limited company. However, companies must be registered for VAT when their annual taxable turnover exceeds a certain amount (currently £90,000) which may be where this belief comes from.
It’s also true that another company structure may be more appropriate for your business if your turnover is particularly low. If you’re not sure, we would recommend consulting an expert on your particular circumstances.
Providing Independent Financial Advice In Lancashire
How Much Does It Cost to Register a Company Name?
A limited company can be registered with Companies House for a small fee. If you register online, the fee is currently £50, with a £71 charge if registering by mail. However, if you need to be incorporated on the same day you submit your registration, you must submit your application online and the fee is £78.
You are unlikely to need to register for same-day incorporation. If you needed to open a bank account in the company name urgently, that might qualify as a reason to do so, or if a contract cannot be signed until the company is incorporated and the work in that contract is time sensitive.
A company formation agent will also charge for their services if you engage one; however, their experience will ensure there are no errors in the process that might result in penalties down the line.
Do I Need an Accountant for a Limited Company?
There’s no legal requirement to hire an accountant. However, unless your limited company offers accountancy services, we would recommend engaging experts in order to ensure you remain in compliance and save as much time as possible in the preparation of company accounts.
Providing Independent Financial Advice In Lancashire
Does a UK Company Have to Be Registered?
Limited companies in the UK must be registered with Companies House and with HMRC. Almost all businesses in the UK need to register with HMRC, with sole traders earning under £1000 annually being the exception.
If you are found to have failed to register when you should have done, HMRC may penalise you with fines or interest.
Using TR-W as Lancaster & Morecambe Company Formation Specialists
If you want support taking this big step in your business, we’re more than happy to help. Get in touch today and we can begin the process.
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Contact TRW Accountants
Address:
TRW Accountants
95 King Street
Lancaster, LA1 1RH
Contact Details:
Tel: 01524 64187
Fax: 01524 60029
Email: office@tr-w.co.uk
Registered in England and Wales. Registered office – as above. Company registration 03851905
