How to Set Up a Limited Company

There are many things that a person can do to better his future. One of the best options to use today is that of starting a limited company. This is a better option than sole proprietorship in a number of ways.

There are many things that a person can do to better his future. One of the best options to use today is that of starting a limited company. This is a better option than sole proprietorship in a number of ways. The number one reason why you should consider this option is fact that your personal assets and those of the company are distinct. There is no fear of ending in total loss in case of a problem. There are many other reasons why you should set up a limited company. With the right steps, you get three main benefits from the choice of a limited company.

As aforementioned, a limited company separates the assets of the investors from those of the company. This is what will enable you to set up a company without the worry of going down with it. Second, the limited company tax is quite efficient as opposed to sole proprietorship. The dividends are not as heavily taxed as salaried income. Thirdly, the limited company will help you to succeed in certain industries. There are essentially three steps you have to take when you set up a company.

The first step is that of getting the basic information as stipulated by Form IN01. In this stage, you will have to come up with the name of your company and the physical address. It is also at this phase that you will be required to give details of your business objectives and the physical address of your office. When choosing the business name to go with, it is highly recommended that you use the Company House guidance GP1. There are rules governing the choice of a business name. Additionally, your business name has to be unique; it should not be in use elsewhere.

Secondly, once the first step is complete, the next thing that you have to do is submit your memorandum of association. This contains the names and addresses of the initial shareholders. It is this document that shows the intention of each party when you start a company. The third step is that of submitting the Articles of Association. This document describes how your limited company is going to operate. It is imperative that you give accurate details when it comes to this step. It is the details on the Article of Association that dictate if you get the rights to start your business. Today, there are mainly two options that you can use to start a company.

Due to the advancements in technology and the diversification of the Internet, the online registration option has gained an immense popularity. This is an option that will enable you to set up a limited company from any part of the world. All that is needed is for you to logon to the Companies House website. However, if you are uncomfortable with setting up a limited company tax using this option, you can always turn to the alternative which involves the hiring of a professional in the same. With the second option, you can hire an accountant or a formation agent to help form your limited company.