You’ve decided to start a limited company — what’s next? When registering a new company with Companies House, the UK Registrar of Companies, you need to meet specific regulations and information. In this blog, market-leading company formation agent Rapid Formations takes you through everything you need to know.
A company name
The first thing you need is a compliant company name. As per the Companies Act 2006, the governing legislation for UK companies, your name must:
- Be unique – not the same as or similar to any other existing company name
- Do not include any sensitive words or expressions. You can find a list of these in the Companies Act 2006. If you wish to use any of them in your limited company name, you must provide supporting documents showing your qualifications.
- End in ‘Limited’ or ‘Ltd,’ or the Welsh equivalent (Cyfyngedig/Cyf)
If you’re unsure if the company name you have in mind is available, you’ll find a handy company name checker on the Rapid Formations website, which will tell you immediately whether your business name is taken or not. However, you still need to ensure it complies with the abovementioned rules.
Your limited company details
Whichever way you register your company, you must provide certain information about your limited company in your application.
Jurisdiction
Your company’s jurisdiction is the location of its registered office address. It must be one of the following:
- England & Wales
- Wales
- Northern Ireland
- Scotland
For example, if your registered office address is in London, your jurisdiction is England & Wales. Or, if your registered office address is in Edinburgh, your jurisdiction is Scotland.
SIC Codes
You must provide your company’s Standard Industrial Classification code(s). These are five-digit codes that describe your industry and the nature of business. You can find a list of SIC codes on the Companies House website.
They get very specific, and you might find that more than one code applies to your limited company. You must provide at least one code, and if necessary, you can add up to four. Don’t worry; you can change your SIC codes later if needed.
Registered office address
This is your limited company’s official business address, where you’ll receive official correspondence from Companies House, HMRC, and other government bodies or courts.
The address must be a physical address in the UK and in the same jurisdiction in which your company is registered. So, if your limited company is registered in Scotland, its registered office must also be in Scotland.
Your registered office address must also be ‘appropriate,’ meaning that:
- You or someone acting on behalf of the limited company must be made aware of any post addressed and delivered to the company
- When your company receives post at this address, the sender should be able to get confirmation of delivery
At incorporation, it’s unlikely that you’ll have a commercial address to provide. You may use your residential address. However, it will be publicly available on the Companies House register, which isn’t recommended. You may prefer the Rapid Formations Registered Office Address service for privacy and professionalism.
Director information
Limited company directors take care of the day-to-day management of the business. A private limited company in the UK must always have at least one director. Each director will need to provide the following information:
- Title
- Full name
- Date of birth
- Nationality
- Occupation
- Service address (also known as the correspondence address)
- Residential address (not shown on the public register)
Shareholder information
You’ll also need to disclose who will own your limited company. These are known as the shareholders or members. The company must have at least one shareholder, and each one must provide the following information:
- Title
- Full name
- Date of birth
- Nationality
- Occupation
- Residential address
- Details of their shares (including class, quantity, currency, and price)
- The answer to three online signature questions:
- Mother’s maiden name
- Father’s forename
- Town of birth
- Telephone number
- National Insurance number
- Passport number
- The incorporation application will also ask you to disclose how many shares each member holds. So, if there are two shareholders with one share each of the same value, they’d each own 50% of the company shares.
PSC information
A Person with Significant Control ultimately controls the company, typically a shareholder. The PSC of your company is anyone who meets at least one of the following conditions:
- Owns more than 25% of the company’s shares
- Owns more than 25% of the company’s voting rights
- Has the right to appoint or remove directors from the board
- Has significant influence over the company
Each PSC must provide the following details:
- Title
- Full name
- Date of birth
- Nationality
- Occupation
- Service address
- Residential address
- Their qualifying condition to be a PSC
Articles and memorandum of association
The articles of association are your limited company’s constitution; they govern how the company will be run and operated. This is a lengthy and detailed document, but don’t worry—you don’t have to create your own.
Most limited companies use model articles, a template provided by Companies House. If you form a company through a company formation agent, they will provide models or standard articles, so you do not need to worry about sourcing your own.
The memorandum is a short document supplementary to your articles that the original shareholders subscribe to with a signature. It confirms that they agree to be members and take up at least one share in the company.
Register your limited company
The final step to starting a limited company is choosing how to register. You can do it yourself directly through Companies House (which can take a lot of your time), use an accountant (which can be expensive), or use a company formation agent. An agent like Rapid Formations simplifies the registration process, meaning your company is registered and ready to trade at a fraction of the time and cost.
Conclusion
You now have everything you need to set up a limited company in the UK. Follow this simple guide to bring your business venture to life.
Need assistance with setting up a limited company? Rapid Formations is one of the leading company formation agents in the UK. With packages starting at just £52.99, they offer affordable, quick, and simple incorporation. Visit the Rapid Formations website for more information.
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