What are the top 10 questions asked when forming a limited company?
The process of forming a new limited company can be daunting and quite possibly the first legal hurdle you will need to cross before launching your business. Although there are no forms to sign and the process of incorporation is relatively quick and simple, you will need to ensure you have all the correct information before you start the process
Tom Wakerley, Company Formations Executive from the UK Company Formations team, has answered some of the most frequently asked questions below.
1. How do I know which company type to choose for my business?
96% of UK incorporations are for private limited companies [Source: Companies House 2015/2016] but a range of different company types are available to choose from. Knowing which type is best for you will need to be assessed on an individual basis, depending on your business needs and operations.
2. How quickly can you register my company?
Once we have received the required information and submitted it to Companies House, you can expect to receive confirmation of your company formation and the company number within 24 hours.
It is possible to incorporate a company on a same day basis. This service is subject to additional fees and you would need to provide all the required information before 1pm.
3. How many people do I need to form my company?
The minimum requirement for a private company limited by shares is one person who can be both director and shareholder. However, different company types or articles of association may stipulate the number of officers required.
4. I live abroad, can I still be the director of a UK company?
Yes you can. There is no requirement for directors or shareholders of UK companies to be resident in the UK. The only requirement is that the company has a registered office in the UK.
5. Will my home address be made public?
The UK registry needs the residential address for all directors. To avoid this information being publicly available you can provide an alternative address, known as a service address.
If you are planning to run your business from home but do not want to use your residential address as the registered office you will need to supply another address. We offer addresses in London, Bristol, Edinburgh and Belfast for this purpose.
6. As a Director, will I need to sign any forms or confirm my consent to act?
No, the ‘consent to act’ procedure has been replaced by a ‘statement of truth’ made by the company when filing a notice of appointment at Companies House. However, companies should keep their own evidence of a person’s agreement to become a director, in the event of any dispute.
Personal information for authentication purposes is only a requirement for members/shareholders.
7. My child is under 18, can I involve them in the company?
Yes you can; a shareholder of a company can be any age but a director must be at least 16 years old. However you may face procedural difficulties within the company, for example, members must be of legal age to vote. If you are considering succession planning at this stage, contact our legal team for assistance.
8. Can I change the company details after it has been registered?
It will depend on the nature of the change but in most cases, with the authorisation of the directors and shareholders, changes can be made by filing forms at Companies House.
9. What should I do if I no longer need my company?
There are a number of options available if you no longer need your company, ranging from selling the business, to declaring it as dormant or non-trading, to ‘dissolving’ it. If you choose to close your company, the process may differ depending on the type of company and its financial situation.
10. Should I incorporate my company through a formation agent?
Using an experienced and knowledgeable formation agent like Jordans can help provide reassurance that your company formation is right first time. Our company formation experts are happy to speak to you throughout the process to keep you informed and answer any questions you may have. We will liaise directly with the registry to take care of the entire process, including the initial statutory requirements and more.
- Ready to form your company?
See our handy checklist to make sure you have everything you need
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