Registering a Limited Company – Limited Company explained
What is a Limited Company?
A Limited Company is a legal entity, owned by one or more shareholders. Its finances and legal status are separate from those of its shareholders. After taxes, the company’s profits can be shared among the shareholders or invested back into the business.
Registering a Limited Company protects you from personal liability for debts the business may incur.
It’s different to working through an umbrella company, which acts as a Limited Company on your behalf. Effectively, you become an employee of an umbrella company, which then contracts you out. It handles invoicing and pays you – less its margin – through PAYE. Umbrella companies take the hassle out of running a company, but you lose many of the financial benefits.
Starting a Limited Company
Forming a Limited Company will put your contracting career on the best business footing. At Boox we’ll help you meet your legal duties as a business owner and ensure you maximise your take-home pay.
Registering a Limited Company
To start registering a Limited Company and enjoying the benefits of a Limited Company, you need to choose a suitable company name and submit three documents. The first of these is Form IN01, the formal application to register a Limited Company. You’ll need to provide your company name and address, names and addresses of shareholders and details of share capital. You’ll also need to make a payment of £15.
Secondly, you’ll need to submit your Memorandum of Association. This gives notice that your shareholders intend to hold a minimum of one share in your company.
The third document is the Articles of Association. This covers how you’ll manage your company.
After checking all these through, Companies House will issue your Certificate of Incorporation.
You now have your Limited Company.
If you’re interested in setting up and registering a Limited Company – we can do it for you for FREE. We’ll then help take away the hassle of looking after your business finances.