There is a wealth of information available online extolling the benefits of forming a limited company. Whether you’re a startup or an established business owner keen to switch from a sole trader or partnership model to an incorporated company or LLP structure, you will find troves of government information and well-written business blogs offering valuable guidance for all stages of your business journey. Below, we will take a look at a selection of useful resources that we recommend.
One of the first steps for prospective company owners/directors is to understand the implications of setting up a limited company and determine whether it’s the right business structure for them. It’s a good idea to do some research into the basics before setting up a company.
All companies must choose a name when they register with Companies House. As well as various marketing and branding considerations (see below) which come into play when selecting a name, there are plenty of rules which must be followed to avoid a company registration application being rejected.
The actual process of company incorporation (i.e., officially forming a limited company and getting it registered at Companies House) may seem daunting at first. But once the groundwork is in place and the key decisions have been made, applying to register a company is generally fast and straightforward – especially if you use a company formation agent.
Nevertheless, there are various complications which can arise, so it’s important to do some preliminary research first.
Many companies start off with a single director who is also the owner and sole employee. Initially they might work from home, but as the business expands it may be necessary to take on new employees and provide them with office space or other types of business premises.
No matter how small the company, directors should understand the basics of employment law, as well as the requirement to provide a registered office address to Companies House.
Anyone starting up a limited company should be aware of their legal obligations to submit annual filings. This is particularly important in the case of existing business owners who are more accustomed to the lighter administrative burdens of operating as a sole trader or partnership.
Anyone forming a limited company will need to be aware of their responsibilities as a company director. This includes the extent of any potential legal and financial liability, as well as the possible penalties, such as disqualification.
Anyone forming a limited company should consider how they will market their business and build up a brand. The choice of a company name (dealt with above) will often be connected to brand building, but there are other factors to take into account.