If you are considering setting up your own limited company, the prospect of ‘dealing with the authorities’ may seem daunting. In reality, the company formation process is very simple – whether you apply yourself, or use a registration agent to set up the company on your behalf.
To set up a private limited company, you (or an agent) have to submit the following information to Companies House:
1. Form IN01
This is the formal application to form a new company. Before you submit the form, you should ensure that the company name you want is available, and does not contain any ‘sensitive’ expressions. You also need to provide your registered office address, details of any directors and company secretary (an optional appointment), details of share capital and the classes of share in issue.
2. Memorandum of Association
This document contains the names and signatures of all subscribers who are setting up the company. For most readers, setting up a company limited by shares (rather than ‘guarantee’), this Memorandum of Association also records the intention of each subscriber to take at least one share in the company. You can download a Memorandum template from Companies House here.
3. Articles of Association
This document outlines how the company will be run – it is effectively the ‘constitution’ of the company. New model articles were introduced on 1st October 2009 following the implementation of the Companies Act 2006. The new standard articles apply by default to all new companies, unless you prefer to submit your own Articles before the company is formed (or subsequently).
Most limited companies are limited by shares, however some organisations (such as charities and non-profit groups) may opt to set up a limited company limited by guarantee. A different set of model articles will apply in each case.
Submitting your documents
Details of how to submit your documents can be found on the Companies House site.
The standard fee to set up a new company is £20, or £50 for the ‘same day’ service.
Alternatively, many people opt to use company formation services to set up a company on their behalf. This is very much the ‘hassle free’ option, and will typically cost under £100 for a complete service. Our formations partner has set up over 1,000 companies for Bytestart visitors.
Of course, you can access a huge archive of company related information, and search for available company names online at Companies House.
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