{"id":11362,"date":"2024-01-19T11:19:09","date_gmt":"2024-01-19T11:19:09","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=11362"},"modified":"2024-09-15T15:12:39","modified_gmt":"2024-09-15T14:12:39","slug":"information-to-set-up-limited-company","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/information-to-set-up-limited-company\/","title":{"rendered":"What information do I need to set up a limited company?"},"content":{"rendered":"
To set up a limited company, you must provide information about the company itself, as well as the people who are going to be associated with it as directors, shareholders, and people with significant control.\u00a0<\/span><\/p>\n In this article, we take a detailed look at all the information you will need to provide when setting up a company – some of which you will need to come prepared with, and some which can be selected during the set-up process.<\/span><\/p>\n Please note that the following details are for a private company limited by shares – the most popular type of company.<\/span><\/i><\/p>\n Your first task is to pick an appropriate name for your new company. As you would expect, there are several rules in place when it comes to choosing a company name:<\/span><\/p>\n Furthermore, if your company name includes any <\/span>sensitive words or expressions<\/span><\/a> – such as \u2018British\u2019, \u2018Health centre\u2019 or \u2018King\u2019 – you must seek written approval from the relevant body. For example, if you use \u2018NHS\u2019, you will require permission from the Department of Health and Social Care. This approval can then be uploaded to your company formation application.<\/span><\/p>\n Check if your proposed company name is available by using our \u2018Search\u2019 tool, now<\/span><\/a>. We\u2019ll also let you know if it includes any sensitive words or expressions. If it does, we\u2019ll notify you of who you need to contact to gain permission to use the word\/expression.<\/span><\/p>\n You need to provide Companies House with guidance on the type of business your company will be doing. This is done by selecting a Standard Industrial Classification (SIC) code from a list that you will be provided with. These are 5-digit codes that outline specific business activities.\u00a0<\/span><\/p>\n Why would my company formation application be rejected?<\/span><\/a>\n What is the extent of limited liability in a company?\u00a0<\/span><\/a>\n What is a company secretary and do I need one?<\/span><\/a>\n <\/p>\n There are over 600 codes that you can choose from, which you can filter by entering a keyword related to your business activity. You must select a minimum of one code, but you can choose up to four.\u00a0<\/span><\/p>\n You should do your best to choose a code that reflects your activity; however, you will not be tied to this if your plans change.<\/span><\/p>\n Your company\u2019s jurisdiction is where the company is based. This is dictated by the location of the registered office address (see below for more information about the registered office address).<\/span><\/p>\n There are four possible jurisdictions:<\/span><\/p>\n If the company\u2019s registered office address is in England, you need to select \u2018England and Wales\u2019. Likewise, if the address is in Wales, you can select either \u2018England and Wales\u2019 or ‘Wales only’. If the address is in Northern Ireland, you must choose \u2018Northern Ireland\u2019, and if it\u2019s in Scotland, you should choose \u2018Scotland\u2019.<\/span><\/p>\n Once the company has been formed, the jurisdiction is set. This means it cannot be changed, so whilst the registered office can be updated, it can\u2019t move between jurisdictions.<\/span><\/p>\n As part of the company set-up process, you must state your registered office address. This is the physical address where government agencies (such as Companies House, <\/span>HMRC<\/span><\/a>, and the <\/span>Information Commissioner\u2019s Office<\/span><\/a>) will send their correspondence.\u00a0<\/span><\/p>\n A company does not need to conduct any trading activity from the address, nor do any company representatives need to be based at the address. Any address can be used as the registered office, provided that:<\/span><\/p>\n The registered office address is published on the Companies House public register, meaning it is easily and freely accessible to any interested party. Because of this, using a residential address as the registered office address is not recommended.<\/span><\/p>\n With our <\/span>Registered Office Address Service<\/span><\/a> (available for \u00a339.00 +VAT), you can use our Covent Garden address as your company\u2019s registered office address, and so shield your private address from the public register whilst boosting your company’s profile.<\/span><\/p>\n The service comes included with a number of <\/span>our company formation packages<\/span><\/a> or <\/span>can be purchased separately<\/span><\/a>.<\/span><\/p>\n For your company to be registered successfully, your application needs to be accompanied by an appropriate set of articles of association. This document sets out the rules that company directors must adhere to, and generally defines how the company should operate (for example, how internal decisions are made).<\/span><\/p>\n You won\u2019t need to do anything regarding the articles of association, as we have drawn up a set that will be suitable for you and your company. All that\u2019s required from you is confirmation that you wish to use these default articles.<\/span><\/p>\n To set up your company, you must name:<\/span><\/p>\n A company can be set up with just one person being named as the director, shareholder, and PSC. It can also be set up with multiple people – it\u2019s up to you (however, the PSC is generally also a shareholder).<\/span><\/p>\n For every director you name, you must provide:<\/span><\/p>\n For every shareholder you name, you must provide:<\/span><\/p>\n You also need to give information about the shares that the shareholder is going to own. This includes:<\/span><\/p>\n A limited company provides limited liability to its shareholders. This essentially means that shareholders are financially protected if the company were to be wound up. How liable shareholders are depends on the number of shares that have been allocated and the nominal value of these shares.<\/span><\/p>\n What\u2019s more, how you allocate shares defines the ownership structure of your company. For example, if you allocate two shareholders with one share each, they will hold a 50%\/50% stake in the company. If you have three shareholders and allocate two shareholders with one share each and another shareholder with two shares, they will have a 25%\/25%\/50 share split.<\/span><\/p>\n See this post for more information: <\/span>Issuing shares when setting up a company \u2013 know your options<\/span><\/a><\/p>\n For every PSC you name, you must provide:<\/span><\/p>\n You must also provide information about the nature of control that the PSC has. This is given through answers to questions regarding:\u00a0<\/span><\/p>\n Whilst the company formation process is a relatively simple one, this is probably the most complex step. See this post for more information: <\/span>People with significant control (PSCs) \u2013 who are they and what do they do?<\/span><\/a><\/p>\nThe company information needed to set up a company<\/h3>\n
Company name<\/h4>\n
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Business activity<\/h4>\n
Jurisdiction<\/h4>\n
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Registered office address<\/h4>\n
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Articles of association<\/h4>\n
The personnel information needed to set up a company<\/h3>\n
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Director information<\/h4>\n
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Shareholder information<\/h4>\n
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About the shares you allocate<\/h4>\n
Person with significant control (PSC) information<\/h4>\n
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That\u2019s the information you need to set up a limited company<\/h3>\n