How to Form a UK Limited Company
Making and keeping a business profitable is all about seeing the big picture. Part of the big picture is protecting you from liability. A limited liability company protects you and your investors from lawsuits that can attack your personal assets. Limited liability companies follow the basic rules of a corporation and allow for foreign investment. Establishing a limited liability company will save you on taxes as well. Here is how to set one up.
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Things You'll Need
- Lawyer
- Tax ID number
- Payment to the Companies House
- UK address
- Investors
Instructions
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1
Find investors for your limited company. You must sell investors first and the money will follow. One of your selling points is that as an investor they will have no risk attached to their personal assets.
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2
Invent a sales pitch that informs your investors. Inform them that the first £10,000 of the limited company's profits is tax-free.
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3
Decide on an attorney who specializes in business law. In order to protect your investors and yourself you want to know that your attorney can protect you adequately.
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Check with your lawyer about the cost of setting up a limited company. Online you can find the papers needed to file for establishing a limited company. If your lawyer is charging more than £2,000 then you need to find another lawyer.
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5
Make payment to the Companies House in the UK. You need to pay in order to register your company as a limited company.
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6
Determine the name of your company. Make sure another company does not use your selected business name. You will need an address in the UK as well.
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File the appropriate tax forms to receive a government tax identification number. Your tax ID number will be on all legal documents created in the normal course of business.
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Tips & Warnings
You can choose one name and then do-business-as under another name.
Select a seal for your limited corporation.
As with all business ventures make sure that you are supported by a trustworthy accountant, tax law specialist and law firm.
