Whether you decide to set up a limited company or not is up to you. However, you should be aware of what it includes before you begin the journey. Every situation is different, so your reasons differ.
A limited company is different compared to a sole trader. A sole trader is at risk when his company fails. He may lose his car, house, of anything else. A limited company is protected. If what you are doing is legal, everything will go accordingly.
Still, what should you know before setting up a limited company? Here are some questions you should ask yourself.
- Does My Company Have A Registered Address?
Just like any company, your limited one needs an address where official mail can be sent. You may use your own address but, if it’s not convenient for you, you can choose a third party service.
Keep in mind – the registered address needs to be in the company’s territory.
- What Will My Company’s Name Be?
The name is very important. So, you are not wrong for asking yourself this. The name must be original. Make sure you don’t use any offensive words in it either. It needs to be original, but something that represents you at the same time.
However, it’s better to spend a lot of time thinking about a name than choosing something you may regret later on. Choose your company’s name carefully.
- Should I Consider Articles of Association?
Articles are requires in any company. They are like a set of rules and it drives the company, including shareholders, directors’ powers, voting rights and others.
You can find model articles online if you elect to use them. If you decide to use your own amended articles, you cannot incorporate your company online. The postal method will have to be used.
- Who Are Going to Be the Company Officials?
As expected, a company needs a director. So, look carefully. You need to know your officials’ addresses, names, dates of birth and nationalities.
In case you’re concerned about privacy, the officials may elect to use a service address, so their own address doesn’t show on the public record.
- Why Do I Need a Share Structure?
Having a share structure is important, because you need to decide how the shareholdings will be apportioned. Decide whether you split shares with someone else, or you will own all of them. Also, think if you require different share classes.
Moreover, you should consult an accountant and discuss the best ways to set up the company’s share capital.
- What Am I Going to Need Regarding Shareholders?
You will have to get information for each shareholder. For instance, you will need their full address, name, class of share and many others. Also, you will need to provide three personal information pieces. Some of these include eye colour, last3 telephone number digits, birth town and others.
Starting a limited company is not easy. That’s why you need to ask yourself several questions at first. If you need guidance, Your Company Formations Ltd can help you with your Limited Company.
