How To Register A Limited Company In The UK - Explained In 60 Seconds

Need to understand how to register a limited company? Let’s boil it down to 3 simple steps...

First, you need a company name and registered office address. Then you need to know the details of the directors and shareholders, finally, you need to create the official company documents and submit everything to Companies House.

You can use a company formation agent to make the process simple.

📌 Full guide to forming a limited company: https://www.business4beginners.co.uk/...

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Step 1: Choose Your Company Name
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Often the most difficult step, you want the name to be memorable, convey the right message to your customers and perhaps be related to the market you are entering.

But, remember it’s only the official name of your company and does not dictate that you have to use that as your brand name (as you can always be ABC Ltd ‘trading as’ XYZ).

So, it’s not worth spending too long trying to find the ‘perfect’ company name.

Your chosen company name shouldn't already in use or too similar to an existing company name, and it should not contain any sensitive or offensive words.

You must also be able to provide a UK-based address that can be used as the registered office.

Step 2: Appointing Directors & Allocating Shares
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Since all limited companies are required to have at least one director and one shareholder then you will be listed as both (unless you wish to appoint another party as a shareholder).

If you are starting the business with other partners then you will need to decide who will be listed as directors in the business and who will be listed as shareholders.

The difference between directors and shareholders is that a director has a direct say in the business but not necessarily a share of the profits, whereas a shareholder has a share of the profits but not necessarily a say in how the business is run. Often, the same individuals will be both directors and shareholders since it is possible to have multiple roles.

As far as shareholders go, the hardest part is usually deciding how much of the business each individual will own. If one person is investing more money than the others, then naturally they will have a bigger share, but the exact levels are something you need to work out between you.

In terms of the numbers of shares issued, that number can be as low as 1 share and as high as you wish! Typically, companies are set up with only 1 share issued to each shareholder. This works fine, but it may suit you better to issue 100 shares since that can easily be divided up between shareholders (now or in the future) in clear percentages.

The value of the shares issued should reflect the initial capital investment. Most commonly, this is set at £1 per share so that a small initial investment can be made and then topped up later.

Step 3: Creating The Official Documents
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In addition to allocating shares, you will also need to provide a memorandum of association. This is a document, usually only one page in length, which sets out who the initial shareholders will be and confirms their intention to take shares in the company as well as confirming the name of the proposed company.

This is then attached with the articles of association, which is a much more detailed document that every limited company is required to have.

It takes the form of a rulebook and binds all the members of the company to follow the correct procedures as set out in the Companies Act.

You should be aware that if you decide to make any changes to your articles of association in the future, you MUST notify Companies House.

Submitting Your Application
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Once you have decided on the name and structure for your new business, you just need to complete the application form and pay a small fee to Companies House.

You can either use the Companies House direct filing form, or you can use a company formation agent who usually offer far simpler and more user-friendly forms than Companies House and can also provide a range of extra services.


Resources
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Recommended Company Formation Agents: https://www.business4beginners.co.uk/...
Naming A Company: https://www.business4beginners.co.uk/...
Assigning Shares: https://www.business4beginners.co.uk/...


DISCLAIMER: The information contained in this video is for general information purposes only. Any reliance you place on such information is therefore strictly at your own risk. Always consult with a qualified accountant to get professional advice tailored to your individual situation.

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