How to setup a UK limited company in 2023
Posted on 18 February 2023
Introduction
Setting up a UK limited company can be a great way to start a business, protect personal assets, and gain credibility with potential customers and suppliers. In this article, we will walk you through the process of setting up a UK limited company in 2023. We will cover everything from choosing a company name and registering with Companies House, to setting up a business bank account and complying with legal requirements.
Step 1: Choose a Company Name
The first step in setting up a UK limited company is to choose a name for your company. Your company name should be unique and not already registered with Companies House. You can check the availability of a company name using the Companies House online search tool.
Once you have chosen a name for your company, you should also check if the domain name is available for your website. It’s important to choose a domain name that matches your company name to ensure consistency and brand recognition.
Step 2: Decide on Company Officers and Shareholders
After you have chosen a company name, you will need to decide on the officers and shareholders for your company. A limited company must have at least one director, who is responsible for managing the company, and one shareholder, who owns shares in the company. You can have more than one director and shareholder if you wish.
The director of a limited company must be over the age of 16 and not have been disqualified from acting as a director. The shareholder can be an individual or a company.
Step 3: Register with Companies House
Once you have chosen a name and decided on the officers and shareholders for your company, you will need to register with Companies House. Companies House is the UK government’s official register of companies.
You can register your company online through the Companies House website. You will need to provide information about your company, such as its name, registered office address, directors, and shareholders. You will also need to pay a registration fee, which is currently £12 if you register online, or £40 if you register by post.
Step 4: Set up a Business Bank Account
Once your company is registered with Companies House, you will need to set up a business bank account. A separate business bank account is important for keeping your business finances separate from your personal finances. It also makes it easier to keep track of your business income and expenses.
When choosing a business bank account, it’s important to consider the fees and charges, as well as the features and benefits. Some banks offer free banking for a certain period of time, while others may charge a monthly fee. You should also consider the online banking features and the customer service provided by the bank.
Step 5: Comply with Legal Requirements
As a limited company, you will need to comply with various legal requirements, such as filing annual accounts and annual confirmation statements with Companies House, and paying corporation tax on your profits.
You will also need to keep accurate financial records and file tax returns with HM Revenue and Customs (HMRC). It’s important to keep up to date with the latest tax regulations and deadlines to avoid penalties and fines.
Conclusion
Setting up a UK limited company can be a great way to start a business, protect personal assets, and gain credibility with potential customers and suppliers.