What Do You Need to Start a Limited Company?

Do you want to set up a limited company but don’t know where to begin? We’ll give you a brief overview of everything you will need for your company formation.

Directors and company secretaries

You are legally required to have at least one director in order to register your limited company. Responsible for the running of the company, they must be at least sixteen years old. Anybody previously disqualified from being a company director is ineligible. Although it is possible to have a company as a director, at least one of your directors must be a person.

Since the Implementation of the Companies Act 2006 it is no longer necessary to have a secretary, although you may choose to have one to take on some of the director’s duties. A secretary may not be either the company’s auditor or an undischarged bankrupt (although they may be able to seek permission from the court).

Shareholders

Every limited company is required to have at least one shareholder as a minimum; there is no maximum number of shareholders. As part of your registration you will have to make a statement of capital, which details the number of shares the company has and their value (referred to as the share capital) and the names and addresses of all shareholders (they will be referred to as subscribers or members).

Registered address

All limited companies must have a registered office address to receive official communications, e.g. correspondence from Companies House and HMRC. Although it doesn’t necessarily have to be your centre of operations, it does need to be an actual physical address and based in the country where you registered your company, e.g. if you registered in Scotland, your registered address has to be in Scotland. If your own personal address meets these criteria, it may apply.

Company name

Your company name is one of the most important decisions you will ever make. If you’re registering a limited company, the name must fulfil certain requirements:

–          It must end with either Limited or Ltd (this can’t be placed anywhere else in the company name)

–          It can’t be the same as an existing company. Our intelligent name check service can cross reference your choice with the database at Companies House and make sure it’s not a duplicate

–          It may not contain sensitive words (the name check service will be able to identify any).

If you have any further questions about what you need for a company formation, we’ll be only too happy to hear from you. We can be contacted either by telephone on 0208 232 5479 or by email at info@eformations.co.uk.

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