Is it easy to start a new Limited Company?
My mate says… ‘Its easy to start a new Limited Company’.
Welcome to 2020!
Setting up a Limited Company can be quick and easy however you shouldn’t just form the company, there’s a long list of decisions that you should make beforehand to ensure a solid start-up process.
See below a list of important considerations before setting up shop:
We recommend that you do some market research to ensure that there is a gap in the market for your new venture.
Ask yourself why your venture is relevant.
Have you put together your business plan? How are you going to grow your new venture?
You will need to see how much money your new venture will cost you and how long it will take before you start making a profit. Do you have enough cash to cover your expenditure? A cash flow forecast will tell you this.
You will need to assess whether a Limited Company is the right decision for you and your new business.
• Is the formation of a Limited Company the most tax efficient route for your income?
• Which tax legislations will affect you? (such as IR35)
• Are you comfortable with the amount of administration involved and the associated accountancy fees?
In addition to our company formation services, we can offer you tax advice to ensure registering as a Limited Company is the right pathway for your venture.
You will need to think about how you’re going to structure your business.
• Who will be the company director(s)?
• Will you have a company secretary?
• Who will be the shareholders?
• Should you include your partner/family?
• Will you have different types of shares?
If you have different types of shares with different rights, you will need to have bespoke shareholder agreements created.
As part of our company formation services, we will talk you through the different type of shares that you can have, and the tax implications involved.
Articles of Association
Articles of association can sometimes be referred to as the rulebook for your Limited Company. It governs aspects of running a company including directors’ powers, decision making by shareholders, voting rights and how dividends are distributed. If you would prefer not to have bespoke articles, there are model articles that you can use for your company.
This can sometimes be the hardest decision to make, what will you call your Limited Company?
• Your company name must be unique
• Your company name cannot legally associate with an existing company, consequentially leading anyone to believe you are associated, for example “Ad Valorem Ltd” would be inappropriate
• Your name cannot suggest a connection with government/local authorities
• Your name cannot suggest that you trade internationally when you don’t
If you would like to discuss how we can assist you with your new business venture, please give us a call on 01908 219 100, or email us at email@example.com.
Posted in: My Mate Says