So, you’ve decided to form your own limited company. The next step is getting everything in place to register it.

The process itself is fairly straightforward, but there are a few decisions to make first, from choosing a company name and registered office to deciding who the directors and shareholders will be.

Here’s what you’ll need and how the formation process works.

First things first… choosing your company name.

You have plenty of freedom when choosing a company name, provided it isn’t the same as an existing company name, isn’t offensive, and meets the Companies House naming rules.

It is worth giving the name some thought before registering it. Some points to consider:

• Punctuation and pronunciation.

You will probably be saying, spelling and writing your company name for years to come. A name that is easy for clients and suppliers to understand can make life considerably easier.

• Be aware of sensitive words and expressions.

You may need official approval before using some specific words and expressions, including certain geographical or official-sounding terms.

• Does the name reflect what you do?

A relevant company name can make it immediately clear to potential clients what your business does. That can be useful when marketing the business, although you may prefer a more general name if you expect your services to change over time.

• Think about the future.

If your company expands or moves into different areas, will the name still work? A very specific name might suit you today but become restrictive later.

To see if your preferred name is available, visit Companies House here: Companies House Name Checker.

Choose how you wish to register your company.

You can register a limited company yourself with Companies House or ask an accountant or formation agent to do it for you. There is nothing wrong with doing it yourself, particularly if the company has a simple ownership structure.

If you register yourself online, the Companies House charge is £100. You can also register by post at a cost of £124. Same-day electronic incorporation is available through certain software services for £156.

Alternatively, many people ask an accountant to form the company for them. This makes a lot of sense, as an accountant can also handle many other tasks you need to complete once you’ve decided to trade via a limited company, including:

• Tax planning advice: getting the correct share structure in place from the outset and advising on how to extract funds from the company.
• Advice on VAT: whether you need to register or may benefit from doing so, and which VAT scheme may be suitable.
• Use of a registered office address: this means official correspondence from HMRC and Companies House can be sent to your accountant rather than your home address.
• Information and advice regarding dividends: when dividends can be distributed to shareholders.
• Set up of the PAYE Scheme: if the company is going to pay you or other employees a salary.

For further details on our company formation package, click here: Ready to set up your limited company?

Ensure you have the correct details to hand.

Before you start the application, it makes sense to have the information you need ready. This will include details about the company itself, its directors and its shareholders.

Companies House has recently introduced identity verification requirements for company directors and people with significant control, so this now forms part of the incorporation process too.

• Standard Industrial Classification code (SIC) for your business – This identifies the type of business your company carries out. You can select the most appropriate code yourself or, if you are using an accountant, they can advise you. The full list can be found here: SIC Codes.
• Company registered office address – Every company needs an appropriate UK registered office address. You can use your home address or, if you prefer not to make this public, your accountant’s address.

The registered office is the company’s official address. This is where Companies House and HMRC will send important correspondence.

You can use your accountant’s address instead of your home address, which also means your home address won’t appear on the public register.

• Company Director – Every limited company must have at least one director. You must be at least 16 and must not be disqualified from acting as a director. Directors are legally responsible for running the company and ensuring that its statutory responsibilities are met.
• Company Shareholder/s – You will need at least one shareholder and must decide how the company’s shares will be allocated. A director can also be a shareholder, and in a typical one-person company the same person will often be both.
• Company Secretary (if applicable) – A private limited company does not have to appoint a company secretary, although it can choose to do so. For most small owner-managed companies, one is not required.
• NI Number – If you are going to pay yourself a salary through your limited company, you will normally need a National Insurance number for PAYE purposes. If you do not have one, you can apply online: Apply for a National Insurance Number.

Your company formation documents

Two important documents form part of the incorporation process – the Memorandum of Association and the Articles of Association.

The Memorandum of Association confirms that the initial shareholders have agreed to form the company. If you register online, Companies House will normally create this for you as part of the incorporation process.

The Articles of Association set out the rules for how the company is run. Most straightforward limited companies use the standard model articles, although bespoke articles can be used where required.

How long will it take to be fully incorporated?

How long it takes will depend on whether you apply online, by post or through an accountant. Online applications are often completed within 24 hours, although this is not guaranteed.

Once the company has been incorporated, you will receive a certificate of incorporation.

This document confirms that the company is registered with Companies House and provides key details, including its company number and date of incorporation. Keep the certificate safe, as you may need it when opening a business bank account or dealing with other organisations.

Getting ready to trade

Once your company has been incorporated, it can start trading. There are, however, a few practical things you will usually want to have in place.

If you are ready to set up your limited company and need some help, click here to get started.

Is there anything else? The following guides cover some of the other areas worth considering when you start trading:

• Set up of your business bank account – keeping company money in a dedicated business bank account makes it much easier to keep business and personal finances separate and maintain clear accounting records.
• Business insurance – the cover you need will depend on the work you do and the risks involved. Some clients will also require particular types or levels of insurance before you can start work.
• Choosing the right accountant – a good accountant can help you get the company set up correctly and keep on top of the accounting and tax requirements once you start trading.
• IR35 Advice – if you are contracting through your limited company, you should understand how the IR35 rules may apply to your engagements. We have more information about IR35 here.

We offer a discounted company formation package when joining Integro Accounting. If you’d like to discuss setting up your company, call us on 0207 0962659.