My accountant did the company registration free for me. I'd caution against doing it yourself unless you know exactly what you are doing.
This is because, although the company creation itself is pretty simple, there are lots of legal requirements that you need to get right, and plenty of details you want to get right first time.
Just as one quick example- if you've been operating as a sole-trader, you'll probably find that there's a significant tax saving to be made by selling the goodwill and any other assets of the sole-trader to the Ltd Company. If you've been going a couple of years, this is likely to save you thousands in tax.
I don't believe its realistic for a trading Ltd company to deal with its tax affairs and annual accounts without an accountant (you may think you know what you're doing- but if you make a mistake, be aware that HMRC will be not be lenient on you just because you're not an accountant).
It costs £18 to register a company online directly. You will be sent all the appropriate forms and documentation in the post/mail. If you are at all concerned, simply fill in the form that declares the company as dormant until you are ready to trade.
That's all you need to do.
Once you trade, then there are a few things to take into account. However, at that point you are a director, and the folk you deal with at HMRC are a whole different bunch to the folk you deal with as a "mere" employee. They will be informed, and bend over backwards to assist you.
Contrary to your belief, trading as a limited company without an accountant is easily accomplished. Personally, I wouldn't recommend it, since an accountant can usually pay for himself in the saving he brings. But that doesn't negate the fact that it can be done without too much pain.
After looking around I used the Bronze package from Companies Made Simple. It ended up being slightly cheaper then using Companies House direct (my understanding of which is that Companies House only charges formation agents £14 per company). Both give you a PDF of the Certificate of Incorporation which you can print off yourself for the bank if they ask for it, plus if you're happy with Barclays the £50 cash back was pretty sweet.
I also used Companies Made Simple. Everything was fine with them, except that if you have non-ASCII characters in your name they will look scrambled in some of the official documents. Use an ASCII transliteration for your name instead of using non-ASCII characters.
I registered directly with Companies House a few months ago, after consulting an accountant. It was completely straightforward. I don't see any need to use a third party.
I've done both in the past, and while Companies House is straight forward, using a third party is even easier, its usually a case of just filling out a page or two form and entering credit card details.
The companies I've registered through third parties email me annually with reminders of what needs to be filled when etc, and where I've left a company dormant I can get that filed for a nominal fee and a couple of clicks of a button.
Additionally they often have cash back deals with the banks, so after opening an account I actually ended up with a profit from registering the company (about £5)
"But before you can do that, you need to figure out which package you want. The crucial factor is that in order to open a bank account, you will need a printed Certificate of Incorporation."
This is not true. I have registered a few companies and not once did they care about the printed certificate. They will call Companies House or email them and confirm you are a director and the company exists.
Ah, your experience differs from mine, then. Every time I opened a bank account (HSBC and Lloyds too) they asked for a copy of the printed certificate of incorporation. Maybe it depends on your branch?
What is the simplest way for citizen of EU member state to create and manage UK Ltd company without ever being to UK or owning anything else there (or renting physical office)?
I have created two UK limited within a 10 year interval without putting my feet there. I recommend you not to do it alone but find a local accountant in UK + an accountant in your country who knows a bit about the UK + your country rules. It is extremely easy to create a UK company, but this creates both obligations in UK and in your country of origin. For example, in Germany, if you are the director of a UK limited, you cannot get "family" health insurance, so you need to have another job or be employed by your UK limited or go private for your health insurance.
So, take the time to see how it affects your situation in your home country.
Note: It will cost you money in all the cases, it is not something you do "just for fun" or you are going to have problems. Setting up a business is work and must be prepared thoroughly.
I'm a Greek citizen with a UK company, I created it in ten minutes on companiesmadesimple.com, who also provide mail forwarding services, if I recall correctly. The biggest pain is the accounting, but FreeAgent (the app referred from the article) sounds good, and I guess 300 GBP a year isn't too much for it.
They provide registration, a UK registered office address and mail forwarding to your address outside the UK. Each of the services costs extra and I'd estimate the overhead is around 300 Euros a year.
Whether you can own a UK company with a foreign address I don't know.
I do know many virtual offices can be your registered address. These tend to be companies that receive your mail/phone calls and forward them on to you or let you rent desks or offices for meetings in town/city centres.
Quick note, regarding "[c]ontrary to what some people will tell you, you can have your business registered at your home address. You can do so even if your tenancy agreement doesn't allow it (obviously, don't actually go out of your way to tell your landlord about it). I don't know anyone who has gotten in trouble because of this (though I'm sure you can find some rare examples if you try)."
I use to assess people for risk at a premier London estate agent.
We would have discovered this in our research via Company House, and if it had infringed your previous tenancy agreement (which it usually would have) we would have: (1) declined any potential tenancy outright, (2) told the future landlord that you had operated a business out of your previous address, and (3) left the final decision to the future landlord.
In the same job, I saw CCJs and Bankruptcies filed against the Landlord's property (when businesses went bust with debts to their name) because inexperienced estate agencies and property management agencies didn't properly vet their tenants.
How ridiculous. If you want to run a steel mill out of your kitchen, that's one thing, but not allowing someone to write some code for a side business in a spare bedroom?
I own multiple rental properties and these scenarios are the least of my worries.
Plus, how would a risk check know what was part of your previous tenant agreement? Do people in the UK submit their previous lease with each application?
I would advise that before people rush to register a Limited company they should consider operating as a sole trader. A sole trader can open a bank account, employ people, rent an office, register trademarks etc.
Also search thoroughly for your proposed company name to check for existing businesses with similiar names or trademarks. And you will probably want a domain name to match.
I would think the opposite. As a sole trader you're personally liable for the company. Above a fairly low threshold for income you have to be VAT registered as a sole trader anyway, which is the biggest headache. If you already get an accountant to do your books I see no reason at all to be a sole trader.
Why? Aren't they very similar, just an Ltd has slightly more complicated tax paperwork and provides liability protection?
Combined with the obvious benefit of having multiple people as directors.
That's a terrible idea. If you're living above the poverty line, the tax breaks for being a limited company are huge, and will pay for the overheads of accountants very quickly.
"As part of the company registration process, you might be tempted to come up with a lofty valuation for your shares. Don't. You'll only cause yourself hassle. Create 100 shares of £1 each and assign 1 share to each equal cofounder. You can change those numbers to reflect however you decided to set up the company. If you want to implement vesting, close this web page and get in touch with a solicitor."
This isn't the case if you register through Companies House - you have to allocate all share capital.
I found this out when using their online registration service recently - according to my accountant it's a change from the Companies Act 2006.
The Companies House registration service is definitely worth using - you'll probably get your company set up within an hour or two of filing the form. Unless you have a complicated shareholder agreement (in which case you really should get yourself a good lawyer if you don't already have one) the default Articles of Association will be fine for you.
One more thing I would like to add to this discussion is that if you register a company and are not based in Britain you will need to send notarised copies of your passport and bank statements (less than 3 months old).
This is the case if you are a director with 25% or more shareholding in the company. You are not required to hold a visa or visit the country.
This is my experience recently registering a company with two other people - I am British and the other two are Indians. I was present at the bank and registered for the account whilst the other two were overseas. Some couriered documents were required with the notarised documents as mentioned above, additionally they were required to complete a form which they signed.
They have full access to the account - online and offline - in the same way I have.
I've linked to this a lot in the past on HN, but the World Bank has a fantastic comparison on the ease of doing business in different countries - one of the sections is "Starting a Business". You can see the comparison here:
I highly recommend downloading the excel sheet, makes filtering by country easier.
One of the biggest advantages of choosing Ireland is the low corporate tax rate of 12.5%, compared to 21-26% in the UK (this is according to Wikipedia, not sure what the current rate is there to be honest). This is the reason many US tech giants, big pharma etc. locate in Ireland.
I've heard somewhere that the UK limited company is the easiest and cheapest (also in terms of capital requirements) available. In Denmark, the capital requirements for a limited company is £14,000, although setting up as a sole trader is extremely simple and completely free.
It also have the advantage over Luxembourg and Cyprus that English is the official language. And finally, it's probably worth mentioning that swombat is living in the UK.
Forget that you even read this article then. Subtract all the simplicity, multiply the hassles by 1000, and double it up, maybe once more. Allow the whole thing to stew on slow flame for months (not days) and probably now you are close to the ground reality of incorporating in India.
Practicalities: You have to contact a RoC agent (Registrar of Companies) who'll get this done for you. Depending on the type of your entity/incorporation (sole proprietorship, LLC, LLP, Company, One person company etc) the fees, time and documentation required will vary. For basic info check out http://www.mca.gov.in/ (Min of Corporate Affairs).
Beware though, really the incorporation process in India sucks donkeys balls and exhales horse farts even when going through agents.
If you want I can refer an RoC agent who presented at one of the weekend startup-meetings in Bombay. Sounded intelligent and well-versed with issues related to startup incorporating. My email is in my profile.
I'm not looking to set myself up as a company, but just out of interest, what's the difference between registering yourself and buying an off-the-shelf limited company? I've known people do it both ways.
If getting yourself registered as a brand new company is so easy, what are the advantages of buying an empty limited company and changing its name? There must be some, or people wouldn't do it.
There are two main advantages to buying an off the shelf company:
1. Having a company that appears to have been around for longer than it actually has (although it's pretty easy to find out it's history - e.g. when directors changed).
2. Getting the company name that you want. There are a number of people that form companies and register them as dormant just to squat on the name - just like people do with domain names.
Edit: forgot to add:
I'd recommend registering a fresh company. It's quick and easy. Buying a company, changing directors, making sure there's no awful legal history with it etc probably isn't worth the extra cost or effort. It's nice to have a clean slate to start with.
The advantage of off-the-shelf companies used to be much greater when the company registration process was slower and all done off-line. These days it's less relevant.
I'd advise against that, because it buffers you from knowing just how simple it is - and gets you in the habit of wasting money getting accountants to do things which you can do yourself in 10 minutes.
Anyone here who is using a UK company while not based there?
Supposedly there are some additional requirements when you're controlling a UK company from abroad. I'm interested in establishing an additional company for some of my ideas but am based in a country which requires high start up capital (Germany, Italy, Belgium, ...).
It is easy to get company registered, the issue can be getting a bank account. I have seen that UK banks do not trust a company if sole Director is a foreign company, even if from another EU state. Some have told that it is easier if Director is physical person (even if from another country). So yes, expect challenges.
tomgallard|14 years ago
This is because, although the company creation itself is pretty simple, there are lots of legal requirements that you need to get right, and plenty of details you want to get right first time.
Just as one quick example- if you've been operating as a sole-trader, you'll probably find that there's a significant tax saving to be made by selling the goodwill and any other assets of the sole-trader to the Ltd Company. If you've been going a couple of years, this is likely to save you thousands in tax.
I don't believe its realistic for a trading Ltd company to deal with its tax affairs and annual accounts without an accountant (you may think you know what you're doing- but if you make a mistake, be aware that HMRC will be not be lenient on you just because you're not an accountant).
auxbuss|14 years ago
It costs £18 to register a company online directly. You will be sent all the appropriate forms and documentation in the post/mail. If you are at all concerned, simply fill in the form that declares the company as dormant until you are ready to trade.
That's all you need to do.
Once you trade, then there are a few things to take into account. However, at that point you are a director, and the folk you deal with at HMRC are a whole different bunch to the folk you deal with as a "mere" employee. They will be informed, and bend over backwards to assist you.
Contrary to your belief, trading as a limited company without an accountant is easily accomplished. Personally, I wouldn't recommend it, since an accountant can usually pay for himself in the saving he brings. But that doesn't negate the fact that it can be done without too much pain.
yalooze|14 years ago
kandu|14 years ago
jamii|14 years ago
Malcx|14 years ago
The companies I've registered through third parties email me annually with reminders of what needs to be filled when etc, and where I've left a company dormant I can get that filed for a nominal fee and a couple of clicks of a button.
Additionally they often have cash back deals with the banks, so after opening an account I actually ended up with a profit from registering the company (about £5)
amouat|14 years ago
dav-id|14 years ago
This is not true. I have registered a few companies and not once did they care about the printed certificate. They will call Companies House or email them and confirm you are a director and the company exists.
Note: My bank is Lloyds TSB.
unknown|14 years ago
[deleted]
swombat|14 years ago
petercooper|14 years ago
jamii|14 years ago
ig1|14 years ago
eberfreitas|14 years ago
olh|14 years ago
swombat|14 years ago
scotty79|14 years ago
Loic|14 years ago
So, take the time to see how it affects your situation in your home country.
Note: It will cost you money in all the cases, it is not something you do "just for fun" or you are going to have problems. Setting up a business is work and must be prepared thoroughly.
StavrosK|14 years ago
papaf|14 years ago
http://www.companiesmadesimple.com/
They provide registration, a UK registered office address and mail forwarding to your address outside the UK. Each of the services costs extra and I'd estimate the overhead is around 300 Euros a year.
mattmanser|14 years ago
I do know many virtual offices can be your registered address. These tend to be companies that receive your mail/phone calls and forward them on to you or let you rent desks or offices for meetings in town/city centres.
For example: http://www.westone-business.com/ or http://www.mwbex.com/page/business-address
NB: Those companies are just some of the first in Google search results, do your own research first I recommend.
Whether they will do it for a EU citizen I do not know. But that should at least give you a hint of where to start looking.
ekpyrotic|14 years ago
I use to assess people for risk at a premier London estate agent.
We would have discovered this in our research via Company House, and if it had infringed your previous tenancy agreement (which it usually would have) we would have: (1) declined any potential tenancy outright, (2) told the future landlord that you had operated a business out of your previous address, and (3) left the final decision to the future landlord.
In the same job, I saw CCJs and Bankruptcies filed against the Landlord's property (when businesses went bust with debts to their name) because inexperienced estate agencies and property management agencies didn't properly vet their tenants.
ryanwaggoner|14 years ago
I own multiple rental properties and these scenarios are the least of my worries.
Plus, how would a risk check know what was part of your previous tenant agreement? Do people in the UK submit their previous lease with each application?
carbonesc|14 years ago
Also search thoroughly for your proposed company name to check for existing businesses with similiar names or trademarks. And you will probably want a domain name to match.
teamonkey|14 years ago
AdamGibbins|14 years ago
Validus|14 years ago
peteretep|14 years ago
jmaskell|14 years ago
This isn't the case if you register through Companies House - you have to allocate all share capital.
I found this out when using their online registration service recently - according to my accountant it's a change from the Companies Act 2006.
The Companies House registration service is definitely worth using - you'll probably get your company set up within an hour or two of filing the form. Unless you have a complicated shareholder agreement (in which case you really should get yourself a good lawyer if you don't already have one) the default Articles of Association will be fine for you.
mcdowall|14 years ago
dav-id|14 years ago
This is the case if you are a director with 25% or more shareholding in the company. You are not required to hold a visa or visit the country.
This is my experience recently registering a company with two other people - I am British and the other two are Indians. I was present at the bank and registered for the account whilst the other two were overseas. Some couriered documents were required with the notarised documents as mentioned above, additionally they were required to complete a form which they signed.
They have full access to the account - online and offline - in the same way I have.
zerostar07|14 years ago
patrickk|14 years ago
http://www.doingbusiness.org/rankings
I highly recommend downloading the excel sheet, makes filtering by country easier.
One of the biggest advantages of choosing Ireland is the low corporate tax rate of 12.5%, compared to 21-26% in the UK (this is according to Wikipedia, not sure what the current rate is there to be honest). This is the reason many US tech giants, big pharma etc. locate in Ireland.
mseebach|14 years ago
It also have the advantage over Luxembourg and Cyprus that English is the official language. And finally, it's probably worth mentioning that swombat is living in the UK.
jot|14 years ago
http://golimited.co/
It was recently launched as a side project of startup I know in Brighton, UK. Seems super cheap.
scq|14 years ago
Perhaps they're operating at a loss to try and attract customers for their online accounting service.
keys1234|14 years ago
kamikazi|14 years ago
Practicalities: You have to contact a RoC agent (Registrar of Companies) who'll get this done for you. Depending on the type of your entity/incorporation (sole proprietorship, LLC, LLP, Company, One person company etc) the fees, time and documentation required will vary. For basic info check out http://www.mca.gov.in/ (Min of Corporate Affairs).
Beware though, really the incorporation process in India sucks donkeys balls and exhales horse farts even when going through agents.
If you want I can refer an RoC agent who presented at one of the weekend startup-meetings in Bombay. Sounded intelligent and well-versed with issues related to startup incorporating. My email is in my profile.
andyking|14 years ago
If getting yourself registered as a brand new company is so easy, what are the advantages of buying an empty limited company and changing its name? There must be some, or people wouldn't do it.
jmaskell|14 years ago
1. Having a company that appears to have been around for longer than it actually has (although it's pretty easy to find out it's history - e.g. when directors changed).
2. Getting the company name that you want. There are a number of people that form companies and register them as dormant just to squat on the name - just like people do with domain names.
Edit: forgot to add:
I'd recommend registering a fresh company. It's quick and easy. Buying a company, changing directors, making sure there's no awful legal history with it etc probably isn't worth the extra cost or effort. It's nice to have a clean slate to start with.
zg|14 years ago
ig1|14 years ago
swombat|14 years ago
TestUser123|14 years ago
Supposedly there are some additional requirements when you're controlling a UK company from abroad. I'm interested in establishing an additional company for some of my ideas but am based in a country which requires high start up capital (Germany, Italy, Belgium, ...).
Anyone familiar with this?
jaakl|14 years ago
topbanana|14 years ago
AdamGibbins|14 years ago
Thanks swombat, I've held registering for a fair while now. As you say, simply because I wasn't 100% sure how to do it.
xxqs|14 years ago
http://www.swinog.ch/meetings/swinog20/p/Swinog20_Starting_a...
In general, the Swiss company registration is a bit more expensive, and there are certain obligations.
AdamGibbins|14 years ago
geuis|14 years ago
vijaymv_in|14 years ago