Every month, hundreds of companies are incorporated in the UK. The official statistics are revealed by Companies House. Many of these businesses are limited companies. One of the main reasons why people are looking for limited company formation is the fact that these companies are allowing owners to separate their personal assets from the company assets. In other words, the responsibility they have is limited hence the name. Don’t forget that a limited company can be limited by guarantee or shares.
Limited company formation: A few different types of limited companies
In case you didn’t know, there are actually three kinds of limited companies. First and foremost, there is a private company which is limited by shares. Obviously, this type of limited company requires limited liability for both the owners and the shareholders.
Next, there is a private company which is limited by guarantee. In cases like this, the company is guaranteed by its members instead of the share capital. Finally, the last type of limited company is the public limited company. This kind of company comes with a special requirement – the shareholders must pay the amount associated with the transactions of shares.
The procedures related to limited company formation
It turns out that registering this specific type of company is not very difficult. There are a few procedures that every company owner must complete in order to finish the process.
First of all, they have to select a unique name for their company. In other words, the company name should be different than any other existing company name. Two companies can’t have the same name. Take some time to check the name’s availability and prepare a short list with a few names.
After that, you must fill Form 10 and Form 12. Both forms are available online on the official Companies House website. It’s also possible to get hard copies by going to the office of this agency. Form 10 is not required when the registration is conducted electronically.
Both Form 10 and Form 12 must be signed by the director or the directors and the secretary. The next step is to fill the Memorandum of Association and submit it. The memorandum is a very important document which contains basic information like the name of the company, activities, type of business and address.
The other important document is the Articles of Association which have to be signed by the subscribers and partners. The rights of all shareholders, the duties, and obligations of the directors and regulations and restrictions of business activities are defined in this document.
All the paperwork must be submitted to the limited liability company office. It’s a smart move to submit the documents and forms together.
In specific situations, company owners must highlight the number of shares and the information about their holders (subscribers). This is a must for private limited company formation. The subscribers must sign the document.
These formalities require some time and energy. If you want to complete them without any hassles, you should use the services of a reputable limited company formation agent.