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Setting Up A Ltd Company


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Right, i need to look into setting up my own ltd company. I think it needs to be a ltd?

As far as i gather from my last research into this last year, i need 2 people, or in some cases just one (me).

So yeah, thats where my research ends.

Basically, i don't have a clue, and i'm looking at getting contracted out by companies, this of course requires me to be a company to recieve wages and for it to be official and so on.

Anyone with a clue on the matter that could provide an insight into this would be greatly appreciated.

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According to CompaniesHouse you need one director and one secretary (and they can't be the same person) and it costs £20 for the registration fee.

I would have thought though that you'd only need to setup as a sole trader, presuming it's just a freelance thing you are doing ? Don't think there is much to that, you'll just need to register as self employed with the inland revenue, and register the company name if you're going to have one.

this seems quite useful .... http://www.smallbusiness.co.uk/features/22...le-trader.thtml

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You need to fill out a memorandum of association which just basically says who you are, the address but most importantly what you will do. This is so that like a dishwasher company doesnt suddenly go off selling light bulbs, then they brake and people come back asking for a refund and wont get them because the company doesnt "deal" with light bulbs (worst example ever award).

Then you need an article of association.. i think.. which is like saying who owns what shares of the company the roles of these people and what they are entitled to.

Theres 2 others.. like form 10 and form 20.. or something like that which you have to fill out but thats just normal admin jargon

You can register with an accountant or solicitor i know certain companys will do it all for you and make it easier though.

Balls forget everything i have said and just go here: http://www.businesslink.gov.uk/bdotg/actio...emId=1073789615

Read that then scroll to bottom and it has everything you need to know ever.

If you want to be super cool.. go for a public-private partnership ;) they are becoming all the rage.. every benifit of a ltd company and every benefit of a public company all in one. Proper win win situation you just need a couple of random mates to become "share holders" to offer up a nice bit of funding to help you get yourself on the way. Its safe for them to do it since if something goes tits up and you get sued, then the company name is what gets sued and therefore the shareholders and yourself are not accountable for the money that needs to be repayed.

Not wanting to be a cock.. but i seriously seriously wouldnt bother with being a sole trader. You want to be ltd because like i said if something goes tits up, not saying it would but this is a first step in to business then you will lose everything.. every asset you have will be gone if someone decides to take it that far. The ltd is the protection you need against this. But then again.. can you handle corporation tax? and income tax coming from an ltd?.

Edit: Just took a look and something i missed, sole traders get taxed an assload :( i thought they got let off. http://www.bytestart.co.uk/content/taxlega...or-sole-t.shtml

Edited by Spacemunkee
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Why don't you just register as self employed and go out and work?

If not just join an agency/contracting firm. Loads of people in my old work (IT people) were contractors, worked with a few of them. They just register with an agency and the agency offers them work when they find it. The ones I worked with had their agency jobs for years, and the agency pays a lot more than if they were employed directly by the company.

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