Setting up a limited company is a good way to start your business adventure. A limited company is essentially a company that is legally separated from you personally (or whoever runs the business) and has separate finances. This is a very common business structure people choose.
To set up your limited company, check out yourcompanyformations.co.uk to help you with the details. But, before you do, here are a few things you will need to have ready.
1) A Great Name
Probably one of the first things you would think of anyway, having a great company name is vital for setting it up legally. This is both logical because you will need to have something to refer to and fun because this name will reflect your values and speak directly to your customer base.
Choosing a good name with either take 1 second where you immediately have an amazing idea, or it could take several days and then 1 second where you have an amazing idea. Try to come up with something short, clear and easy to remember and you will be onto a winner.
2) At Least One Director
Your company will also need at least one director which can be you. The rules are that a director must be over 16 and will be responsible for looking after the accounts. Directors are also responsible for running the company – for example, you and your business partner.
Shares can get a bit complicated if you are unfamiliar with how they work so you should probably have a look at the gov.uk website to check it out before you get started. And then talk to an accountant too!
The important thing is that your shareholders don’t have to be strangers or investors – it could just be you owning 100% of the shares or you and your business partner going 50/50.
4) An SIC Code
An SIC Code sounds very impressive but it is just a way to define your business simply by putting it into a category. For example, if you are planning to open a music shop selling instruments and scores, your SIC Code would be 47591. You can find your SIC Code here by typing in relevant keywords.
5) A Company Address
Usually, this address will be the address of your office and is where all official communications will be sent. Though you could use your home address, you need to be aware that this address will be listed publicly which may be a problem for you.
If you don’t have an address yet and you don’t want to use your home address, you could use a PO box. This is a great idea if you are saving money by starting out as a virtual company before expanding later on.
Setting up a business is a relatively simple process but there are a lot of things to sort out before you can start trading. The more clued up you are about what you will need to do before you start, the less stressful it will be so hopefully this blog will have helped!