Company Formation - Pre-Formation Information

About Limited Companies

Limited Company is a separate legal entity, that has a life of its own.

It is owned by the shareholders, and run, day-to-day by the directors.

Forming a company usually takes a day or so, and usually costs between £90 and £250 depending on the complexity of formation.

How you close a limited company depends on the circumstances.

Dissolving a company that has no debts usually only costs around £10 in Companies House fees.

However, where a company needs to close while owing debts to HMRC, or suppliers for example, a formal liquidation is required which can cost in excess of £5,000.

 

Shareholders

Who the shareholders are, and the proportion of the company that they own and control, is an important decision to get right from the outset.

Shareholder usually receive distributions of company profits in the form of “dividends” paid in proportion to their shareholding in the company.

Changing the shareholders at a later date can have tax and other consequences, and can involve both time and costs.

Shareholders have “votes” based on the number of voting shares they hold.

A shareholder, or group of shareholders that together control over 50% of the votes, have control over many decisions put to shareholders at shareholder meetings. 

In order to liquidate a company at least 75% of the votes must be in favour of that.

Registered Office Address

This is the public facing address shown on the Companies House website as publicly available information.

It can be changed without a Companies House fee at a later date, but previous addresses will still be in the public record for the company.

Directors

Who the director are is important. If you plan to remunerate the directors, for example.

The directors can be the same or different to the shareholders.

Directors can be changed later without cost unless a director was to seek compensation for loss of office.

Directors are normally employees of the company paid under PAYE via payroll.

Directors are responsible for the day to day running of a company.

Directors have a legal responsibility to look after customers, suppliers and the interests of shareholders.

Who the directors are in publicly available on the Companies House website.

Articles of Association

Limited Companies operate with parameters set out in the “Articles of Association”.

Basically, the rules by which the director(s) and shareholder(s) will run the company.

When forming companies for clients we use the suggest default “Articles of Association” avaiable at Companies House. 

You can see the articles using the “click here” button below.

After Reading The Above - Complete The Checklist Below

Company Formation Pre Formation Checklist

Company Formation Pre Formation Checklist

THIS IS A GENERAL CHECKLIST ONLY.

ESTIMATED TIME TO COMPLETE: 5 MINUTES

YOUR DETAILS

e.g. A111 (if not sure just leave blank)
First name
Surname
For most submissions you will also get a copy of what you tell us, by email.
Enter the full name of the Limited company we are to form for you including the "Limited" part at the end.

COMPANY FORMATION - PRE FORMATION CHECKLIST

REGISTERED OFFICE

The "Registered Office" address is the address which Companies House will show on public record. Official departments such as HMRC, Councils, and other government departments will usually send correspondence to the Registered Office address. It can be separate from directors home address or the trading address.
Have you considered where the registered office should be?
The public facing address of the company at Companies House.

DIRECTORS

Directors are the people legally responsible for the day to day running of a Limited Company. They are employees or office holders responsible for administration such as arranging accounts preparation and looking after the company, dealing with customers and suppliers and looking after the interests of shareholders.
Have you considered who the directors should be?
Directors are normally entitled to be renumerated via a salary or directors fee for the work they do for the company.

SHAREHOLDERS

Shareholders are the owners of a limited company. If shareholders own shares with "voting rights" they vote to approve or disapprove proposals by the directors on the running of the company, such as year end accounts or changes to company structure and distribution of profits.
Have you considered who the shareholders should be?
Shareholders normally receive a share of distributed profits, in the form of dividends, in proportion to the share of the company that they own.

OTHER INFORMATION OR UPLOADS (optional)

Use this section if you want to tell us any other information.
For example, if you were not sure of any of your answers you can add any further comment here to let us know.

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T4 Tax Limited

Chartered Tax Advisers & Independent Certified Practising Accountants

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