What You Should Know About Limited Company Formation

If you wish to set up a limited company of your own but is unaware of the ways and means of doing it, please read on to get an idea of what is required for its set up. The information provided is a step by step guide.

The Basic

Limited companies are basically of two types:

1. Plc. or Public Limited Company – these are publicly traded on the stock market and are thus dependent on the rise and fall of the stock market.
2. Ltd. – these are privately owned and are independent of the stock market.

It is expected that any person starting a company would basically start with a limited one and not go all out on the stock market. Thus we are going to focus our attention on forming an Ltd company.

The First Steps

The first step required for the set up is to select a name for your company. While selecting the name you should have in mind the following points:

1. The name of your company SHOULD BE TOTALLY UNIQUE. There cannot be two companies doing business with the same name. If you are unsure of how to check this then go to Companies House WebCHeck service and find out if the name you selected already exists.
2. The second point to keep in mind is that the name of your company should be catchy, attractive and relevant to your business so that people will find it interesting. Remember that you are setting up your company with the intention that it will last for a lifetime.

The Next Step

Once the name has been selected the first step is complete. Then, you are ready to register your company. The registration can be done in two ways:

1. Via paper – you fill up an application form in paper and submit it. You need to be very careful about this since any form of error is liable for cancellation of your company.
2. Via electronically – you can also submit your application via software designed by Company Formation Agents. The software would interact with Companies House systems and your company would be ready.

The Details Needed

The details that you need to fill up are:

1. The operating address of your business
2. The starting capital
3. The name and details of the directors
4. Other information required is the National insurance number, date of birth, mother’s name or telephone number.

Now your company is up and running.

Having learnt the ways and means for limited company formation you are now ready to set up your business. Just take care that you need to file your taxes on time. Since the usage of internet has spread widely most people use it for online tax return.