Limited Company Formation - How To Register A Company

Tip 1: Are you sure you need one?

Maybe you can stay as a sole-trader; 'John Carrot-Cake trading as Luminous Umbrella'?

Pro: A limited company limits your personal liability if someone brings a legal action against your business. It can confer tax advantages. It lets two or more people own a share on one business. Being a limited company means clients will take you more seriously.

Con: It can also be a pain to maintain; you have to submit annual returns: https://www.registeredaddress.co.uk/blog/uk-limited-company-official-filing-deadlines/

Tip 2: You only need one person.

You can be both director and shareholder. There is no need for a company secretary. Britain leads the way in making setting up a corporation easy.

Most other jurisdictions require at least two people, one of whom has to live locally. These are expensive to maintain.

Tip 3: You can live abroad.

Foreigners can set up UK limited companies. Only the company address needs to be based in the UK, and we rent our address to you! http://www.registeredaddress.co.uk/registrationoptions

Tip 4: The shareholder is the owner.

That's right, it's not the director(s). The shareholder is the owner of the company; that's what a 'share' means. In practical terms it means the shareholders get the dividends, which are the profit, after tax, of a company, divided between shareholders.

Whoever owns 51% of a company's shares, controls it!

Tip 5: Try not to be too clever.

Re-registering a bankrupt or de-registered company might not be too smart; the creditors of the old might come sniffing around you. Who knows what the original owners were up to!

Likewise, registering a name which is very similar to an existing one is not too smart. The original company might not like it. Companies House may simply not allow it. However ...

One can try different variant names; 'if ya don't ask, ya don't get!'

Personally, I think 'MealMonster Ltd' is a much better name than 'Party Caterers UK'. Why? Because it's unique and more memorable. Whose website is going to come up first is a Google search if you have a generic or copycat name? Probably not yours!


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