Forming a UK Limited Company (Ltd) involves several steps. Here is a simplified guide to help you through the process:
**1. Choose a Unique Name:
- Pick a name for your company. Ensure it’s unique and not already in use by another business. You can check the availability of the name on the Companies House website.
**2. Registered Office Address:
- Decide on a registered office address for your company. This is the official address where legal documents will be sent.
**3. Appoint Directors and Shareholders:
- Add directors and shareholders of your company. Directors are responsible for running the company, and shareholders own the company.
**4. Memorandum and Articles of Association:
- Prepare the company’s Memorandum and Articles of Association. These documents outline the rules for running the company and the rights and responsibilities of the shareholders.
- You can also use already available Memorandum and Articles of Association by Companies House.
**5. Register with Companies House:
- Submit the necessary documents, including the Memorandum and Articles of Association, to Companies House. This can be done online or by postal mail. You’ll need to provide details about the company, directors, and shareholders.
- It’s not a complicated process, just follow the steps and add details.
**6. Pay the Registration Fee:
- Pay the registration fee about GBP 12, which is typically done online during the registration process. The fee can vary, so check the current rates on the Companies House website.
**7. Unique Taxpayer Reference (UTR) and Authentication Code:
- After successful registration, you’ll receive a letter from HM Revenue & Customs (HMRC) containing your company’s UTR. This is a unique code for tax purposes.
- You’ll also receive a Authentication Code in mail from Companies House, Remember Authentication Code is just like a ATM pin, so keep it safe as it will be used while filing annual returns. Without Authentication Code you’ll most likely be seeing your company dissolved at a point.
**8. VAT Registration (if applicable):
- Depending on your business turnover, you might need to register for Value Added Tax (VAT). Check the threshold and register with HMRC if necessary.
- Usually if your Business annual turnover is under GBP 85000, you don’t need VAT. But you can still register for VAT voluntarily.
**9. Keep Records and File Annual Documents:
- Maintain accurate records of your company’s activities, including financial transactions. File annual financial statements and an annual confirmation statement with Companies House.
**10. Compliance with Regulations:
- Ensure ongoing compliance with legal and regulatory requirements. This includes filing annual accounts, updating changes in company details, and fulfilling tax obligations.
It’s worth noting that the process might be subject to updates or changes in regulations, so it’s essential to refer to the latest guidance from Companies House and HMRC. If you’re unsure about any step, consider seeking professional advice from an accountant or a business consultant to ensure a smooth and compliant formation process for your UK Ltd company.
