The vast majority of new businesses in the UK are set up as limited companies
. So what makes this option so popular? The main reason why business people prefer limited company formation over other ways of setting up their new organisation, is that the business is seen as separate. It sits to one side of personal assets.
If you're thinking about setting up in business, you'll find there are three types of limited company formation. These are private company, limited by shares. Private company limited by guarantee and public limited company.
Ltd company formation is actually not that complex. All you have to do is adhere to the following steps. First off, you're going to need a name for your new company. This must be original and distinct from anything already in use by another business. Don't get caught out. Check first before you try and use something you've thought up. Once you have your name, it's time to complete forms 10 and 12 from Companies House. You can do this online or request hard copies. If you opt for online registration you can skip form 10. Once complete you must get signatures from directors and secretary of the company. Then you must submit the Memorandum of Association. This document is vital.
When you have the Articles of Association signed by all partners and subscribers, you'rel nearly there. Once you have all your paperwork ready, you can submit it at the state limited liability company office. This can be done by post or in person.
When going through the process of Ltd company formation, don't forget to advise the number of shares to be held by each subscriber. They also have to sign in the presence of a witness.
The best way to avoid any mistakes that might hold up proceedings is to enlist the help of a company registration agent. They can help you sail through the formalities without any hitches or delays.