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How To Setup A Limited Company

The most popular type of company formation in the UK is a Limited by Shares Company.

imited by Shares is a type of company that is most commonly used when forming small businesses. It means the company will have limited liability; therefore if the company fails there is no claim on the assets of the company Directors.

The shares within the company must not be offered to the general public (unlike Public Limited Companys).

However the main reason why this is the most popular of company types is the easy, straightforward and paperless way in which it is formed.

Step One

You must first choose your company name. Whatever name you choose it must always end in the word Limited or LTD.

Click here for a free Company Name Check.

Here you can check as many names as required to find a suitable and available name for your company

Step Two

Two important appointments must then be made within your company.

The first is a company Director.

This can be an individual person or a Corporate Appointment. You can have as many Directors as you like, however at least one director must be an individual.

The second appointment is that of Shareholder.

You can appointment as many shareholders as you like and an individual shareholder is not required, therefore all appointments can be corporate.

A Company Secretary is no longer a legal requirement for a UK Limited Company but you are able to appoint one if you so require.

A company can have a sole Director who may also be the Shareholder and Secretary.

Step Three

Since the New Companys Act, Limited Companys no longer have a share capital, the only shares in the company are the shares allocated to the Shareholders.

Therefore if a company has two Shareholders holding one share each the total number of shares in the company is 2.

Step Four

Your company must have a valid UK Registered Office Address (PO Box and DX addresses are not acceptable by the Registrar). It is the address that the company is registered to and where all company post from the Registrar and the Inland Revenue will be sent.

Shelf Companies

It is also possible to buy Off the Shelf or Ready Made Companies. This is a great option for people who require a company but do not want to go through the Incorporation process. However it is a more expensive and slower option.

There is also a demand for Shelf Companies which were incorporated some years ago, also known as Aged Companies.


Overall although the incorporation of UK Limited Companies is very simple most people like to have some guidance and support. This can be obtained from various sources.

Click here for guidance.

Most UK Limited Companies are now formed electronically by Software Suppliers that have direct links to the Company Registrar and who offer various packages. Most Accountants will use software provided by a Software Supplier.

These days it is a quick and simple process. One supplier has incorporated a company in 6 minutes.

It is a legal requirement for all UK Limited by Shares Companies to have and maintain a fully completed Company Register. Be sure to check the Register is included in your Incorporation Package.

Article Source: CFS International Formations Limited

CFS International Formations Limited

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