Company Formation FAQ
HOW LONG DOES IT TAKE TO INCORPORATE A COMPANY?
Online formations are usually completed with 24 hours.
Manual formations are usually completed within four days of receiving all the necessary documentation.
WHAT DOCUMENTS DO I NEED IN ORDER TO INCORPORATE A COMPANY?
Online formations are relatively straightforward. All you need to know are the Director(s),Secretary and Registered office details.
The following need to be returned to us in order to process a manual incorporation.
288a forms for each director and secretary
287 form for your registered office
Copy of each directors passport
Copy of a utility bill in each of the directors names
CAN I CHOOSE ANY NAME FOR MY LIMITED COMPANY?
It is important to check your proposed name on the “name search” section of our website to see if the proposed name is available. There are a few restrictions that apply:
You cannot register the same name as another company
Names that are likely to cause offence are not allowed
Certain words are restricted
It is also important to check whether your chosen name is similar to any other names already on the register. If your chosen name is too similar to another name, an objection could be made within the 12 months following the incorporation of your company and you could be directed by the Secretary of State to change the company's name.
WHAT IS A REGISTERED OFFICE?
The registered office is an address in England or Wales where documents can be delivered to the company. The address must be a physical address not a P.O. Box. If a company changes its registered office address the new address must be notified to Companies House on Form 287.
WHAT IS THE MINIMUM NUMBER OF OFFICERS A COMPANY REQUIRES?
Every company must have a minimum of two appointed company officers at all times.
A private company must have:
one secretary - A company's sole director cannot also be the company secretary.
If you want to adjust any information with regards to your officer appointments you must tell Companies House by using the following:
the appointment of a new officer - use form 288a
an officer's resignation from the company - use form 288b
changes in an officer's name or address Form 288c
WHO CAN BE A COMPANY DIRECTOR?
You can't be a company director of a Limited Company if you are an undischarged bankrupt or disqualified by a court from holding a directorship, unless given leave to act in respect of a particular company or companies;
There is no minimum age limit in the Companies Act for a director to be appointed in England and Wales . However, he or she must be able to consent to their own appointment.
HOW MANY SHARES DOES THE COMPANY HAVE?
Our online application form allows the share capital to be whatever you require. The default is set up at 1000 shares at a value of £1 each.
HOW DO I ISSUE MORE SHARES?
The stock transfer form (J10) is used to transfer the original subscriber share to the new shareholder. If you wish to issue further shares up to the authorised share capital, form 88(2) should be completed and sent to the Registrar of Companies at Companies House.
WHAT PERIOD SHOULD THE ACCOUNTS COVER?
A company's first accounts must start on the day of incorporation. The first financial year must end on the 'accounting reference date' or a date up to seven days either side of this date. Subsequent accounts start on the day following the year-end date of the previous accounts. They end on the next 'accounting reference date' or a date up to seven days either side.
WHAT IS AN ACCOUNTING REFERENCE DATE?
The accounting reference date depends on the date of incorporation as it is the last day of the month in which the anniversary of incorporation falls. For example, if your company is incorporated on 5 March this year, the accounting reference date will be 31 March, and its first financial year must end on 31 March next year (or within seven days of that date).
CAN I CHANGE THE ACCOUNTING REFERENCE DATE?
Yes. You may change it by sending Form 225 to the Registrar of Companies at Companies House. You must do this during the accounting period affected by the change or during the period allowed for delivering the associated accounts.
You can only extend the accounting reference date once in five years but you can shorten it as may times as you like.
WHEN MUST I SUBMIT MY FIRST ACCOUNTS BY?
Annual accounts must be submitted to Companies House within 10 months after your company's year-end or 22 months after the date of Incorporation for your first year, thereafter 10 months after financial year end. A penalty will be charged for late accounts up to a maximum of £5000.00
WHAT IS AN ANNUAL RETURN?
Every company must deliver an annual return to Companies House at least once every 12 months. The annual return enables Companies House to update their records about your company such as officer information, share allocation etc
You must send the annual return back to Companies House with a payment of £15. Failure to do this will result in your company being struck off the register.
WHAT HAPPENS ABOUT CORPORATION TAX?
Within 9 months after your first trading year, you will need to complete your Corporation Tax Return and pay any corporation tax due. This will be sent to you by post from Inland Revenue, in good time for this deadline. Once again a penalty will be charged for late returns.
WHAT ARE THE CONSEQUENCES OF SUBMITTING LATE INFORMATION TO COMPANIES HOUSE?
Limited companies must meet their legal obligations or face being fined. If you don't tell Companies House about your company's financial state on time, and you don't send in details of changes the penalties incurred may affect future business creating trading problems and credit ratings.
If your accounts are delivered late, there is an automatic penalty. This is between £100 and £1,000.
In addition, directors may be prosecuted for not filing certain documents. If convicted, they will have a criminal record and be liable for a fine of up to £5,000 for each offence. In some cases, they could also be disqualified from being a company director or taking part in the management of a company for up to five years.
CAN I SET UP A COMPANY BUT NOT TRADE WITH IT STRAIGHT AWAY?
Yes. You are not required to trade with the company as soon as it is set up but the accounts still apply. Even if you have not traded with the company you must still submit accounts, in this case dormant accounts. Dormant accounts tell Inland Revenue and Companies House that the company is active but not trading.
WHAT MUST I DO IF I NO LONGER WANT THE COMPANY?
Limited companies that have not traded or otherwise carried on business for at least three months may apply to the Registrar to be struck off the register. Companies House will charge a fee on £10.
WHAT IS A MEMORANDUM OF ASSOCIATION?
This document sets out the following:
The company's name
Where the registered office is located
States the objects of the company. In our case the company is set up as general trading which enables it to perform business in any commercial area.
WHAT ARE THE ARTICLES OF ASSOCIATION?
This document outlines the rules associated with running the internal affairs of the company.
WHERE CAN I GET ADDITIONAL INFORMATION FROM INLAND REVENUE?
Please click on the following link.
DO I NEED TO REGISTER FOR VAT?
If your turnover is equal to or exceeds £58000.00 per annum you must be VAT registered. If your turn over is less than the threshold you have the option. Your accountant will advise you accordingly but if you require any further information the links below are helpful.
^ Top of the page